Updated 12/04/2012 12:04 PM   |   ID# 601

Withholding past-due benefits to pay representative fees

Does Social Security withhold past-due benefits to pay all fees for representation?

No.  Social Security authorizes and processes direct payment to an appointed representative when:
  • A valid fee agreement or fee petition exists;
  • The representative is eligible for direct payment; and
  • A favorable determination is made resulting in past-due title II and title XVI benefits.

If Social Security authorizes a fee greater than the amount of past due benefits withheld, the claimant must pay the difference to the representative.

Social Security is not responsible for direct payment if:

  • There is no valid fee agreement or fee petition,
  • The representative is not eligible for direct payment,
  • The fee has been waived by the representative,
  • The representative works for a legal service organization that provides services free of charge and is not collecting a fee,
  • A third party agreed to pay the fee, or
  • There are no past due benefits payable.

We also do not withhold benefits for potential direct payment of fees to any representative whose appointment is no longer in effect as a result of a final disqualification or suspension decision by the Office of General Counsel, or a withdrawal or revocation of appointment that occurs before a favorable decision.

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