I-1-2-55.Representative Is Eligible to Receive Direct Fee Payment - Procedures up to Receipt of Petition

Last Update: 12/9/24 (Transmittal I-1-108)

A. Effectuating Component's Actions After Decision Issued

The effectuating component will:

  • Issue a notice of award.

    After effectuating a fully or partially favorable Title II and/or Title XVI decision in a case in which the claimant was represented, the appropriate processing center (PC) or field office (FO) sends a copy of the notice of award to the claimant and representative.

  • Set a 60-day diary from the date of the decision.

  • Email the appropriate Office of Hearings Operations (OHO) hearing office (HO) or Office of Appellate Operations (OAO) staff at the end of the 60-day diary period if the effectuating component has not received a fee authorization or information that the representative was granted an extension of time. The PC or, in Title XVI only cases, the FO will send an email message requesting status to the designated HO per OHO Fee Contacts or OAO email address, as appropriate.

The notice of award informs the claimant and the representative of:

  • The amount of benefits due,

  • The amount withheld for the payment of a representative fee, and

  • In cases where a fee petition is required for a fee authorization, the requirement that the representative eligible for direct fee payment file a fee petition in order for the representative, or the entity if there is a valid assignment of fees to an entity, to receive direct payment of a fee from withheld benefits.

NOTE:

If there is a valid assignment of direct payment of fees to an entity, the Social Security Administration (SSA) may also share the award notice with the entity's point of contact (POC) if it is necessary to resolve a fee-related matter. For information on assignment of direct payment of fees, including the roles and responsibilities of a POC, see Program Operations Manual System (POMS) GN 03920.021.

If an OHO decision maker issued the fully or partially favorable decision and the HO staff member designated as the PC or FO fee petition contact responds that the HO has not received a fee petition or waiver statement, check if an extension has been requested or granted. If no extension has been requested or granted, the PC or FO will send the representative or POC a 20-day closeout notice and diary the case for 45 days. If there is evidence of the limited circumstances described in Hearings, Appeals, and Litigation Law (HALLEX) manual I-1-2-53 A (see also POMS GN 03920.020A ), the effectuating component sends this notice to the entity's POC or the representative's estate executor as appropriate.

If an Appeals Council (AC) decision maker issued the fully or partially favorable decision, the PC or FO will ask OAO's Attorney Fee Branch (AFB) to issue the closeout notice. The PC or FO will diary the case for 45 days.

At the end of the 45-day diary period, the PC or FO will contact the HO per OHO Fee Contacts or OAO staff to determine whether the PC or FO may release the past-due benefits.

  • If OHO or OAO has not received the fee petition or an indication that the representative, or an individual, in the limited circumstances described in HALLEX I-1-2-53 A, will file a fee petition by the end of any extension of time granted, OHO or OAO staff immediately will advise the PC or FO to release the past-due benefits if there is no other reason to withhold them, e.g., other representatives who may receive direct payment, or court involvement.

  • If OHO or OAO has received or expects to receive a fee petition by the end of any extension of time granted, OHO or OAO staff will advise the PC or FO to continue to withhold payment.

B. OHO and OAO Coordination with Effectuating Component

1. 60 Days After the Notice of Award

If the claimant's representative is eligible for direct fee payment and, within 60 days of the date of the notice of award, the PC or FO does not receive the fee authorization, a written notice of the representative's intent to file a fee petition, or information that the representative was granted an extension of time, the PC or FO will contact the HO by email per OHO Fee Contacts or OAO staff by email at ^DCARO OAO ATTY FEE BR and request the fee authorization or status update.

The HO or OAO fee petition contact will respond immediately by email and advise the PC or FO whether they have received:

  • A fee petition and added it to the claim(s) file or sent the fee authorization to the PC or FO, as appropriate (see HALLEX I-1-2-53 B.3. below),

  • A fee petition and authorization is pending,

  • A statement of intent to petition and granted an extension of time to file,

  • A fee waiver statement or direct payment waiver statement, or

  • Neither a petition, intent to file a petition, nor a request for an extension to file one.

NOTE:

If the HO does not provide a timely response, the PC or FO will refer the matter to the Regional Chief Administrative Law Judge (RCALJ). If the RCALJ's office does not respond timely, the PC or FO will contact the Office of the Chief Administrative Law Judge.

2. OHO or OAO Staff Received Fee Petition or Statement of Intent to File One

If the OHO or OAO staff received a fee petition or a statement of intent to petition, staff will:

  • Advise the PC or FO when the decision maker expects to issue the fee authorization if the decision was issued more than 90 days before the petition was received;

  • Enter the petition information into the Hearing and Appeals Case Processing System (HACPS), Case Processing Management System (CPMS) for a case in CPMS only (for OHO), or the Attorney Fee System (webAFS) (for OAO), as appropriate; and

  • Immediately begin processing the fee petition so that the fee determination can be forwarded to the PC or FO as soon as possible.

NOTE:

If the OHO or OAO decision maker approved a fee agreement and the representative subsequently filed a fee petition, either on their own initiative or in response to an erroneous notice from the PC or FO, refer to Hearings, Appeals, and Litigation Law (HALLEX) manual I-1-2-44D.3.

3. Action Completed on Fee Petition

When the decision maker completes their action on the fee petition, the HO or OAO staff will email a copy of the fee authorization with an explanation documenting the rationale for setting the fee, to the appropriate PC or the appropriate FO in Title XVI only cases and ensure a copy is included in the claim(s) file. PC control mailboxes are provided in HALLEX I-1-2-96. FO fax numbers can be accessed through the Detailed Office/Organization Resource System (DOORS) by going to the Welcome to DOORS Re-Write Application and entering the field office code.

4. Fee Petition Not Received

If the decision maker has not received any of the documents described in HALLEX I-1-2-55 B.1. above, the OHO or OAO staff will advise the PC or FO of this by email in response to the request for status. For a case decided by an OHO decision maker, the PC or FO will send a closeout notice (see HALLEX I-1-2-55 A above). For a case decided by an OAO decision maker, the AFB will send a closeout notice (see HALLEX I-1-2-55 B.5. below).

5. The Closeout Notice

If the AFB did not receive a fee petition or a statement of intent to petition within 60 days of the date of the decision, staff will send the representative a 20-day closeout letter advising the representative that:

  • They must file a fee petition or a written request for an extension of time if they intend to charge a fee or notify OAO if they are waiving the fee.

  • SSA will release any withheld past-due benefits to the claimant if no petition or request for extension is received within the 20-day period.

  • The release of withheld benefits does not relieve the representative of the responsibility to file a petition if they later decide to charge a fee.

  • Attempting to collect a fee without obtaining SSA's authorization could violate section 206(a) of the Social Security Act (42 U.S.C. 406(a)) and the regulations (20 CFR 404.1740(c) and 416.1540(c)).

6. Release of Withheld Benefits

The PC or FO will release withheld past-due benefits to the claimant if the representative eligible for direct fee payment waives the fee or does not submit a fee petition or intent to file a petition and the PC's last diary date expires (if there is no other reason to withhold them, e.g., other representatives who may receive direct payment, or court involvement). Therefore, when the representative submits either the fee petition or a statement of an intent to file a fee petition, OHO or OAO staff must immediately advise the PC or FO to prevent release of past-due benefits.