Oct 25, 2007

COLAs, But Not For Attorneys

The Federal Register notice about Social Security cost of living adjustments is out and there is no increase in the fee cap for representing Social Security claimants. It has been stuck at $5,300 for more than five years. If it had been adjusted for inflation, it would be about $6,100 by now. However, the cap on the user fee for having fees withheld by the Social Security Administration went up to $79. Somehow it does not seem fair that attorney fees go down because of inflation. Here is the entire list:
(1) A 2.3 percent cost-of-living increase in Social Security benefits under title II of the Social Security Act (the Act), effective for December 2007;
(2) An increase in the Federal Supplemental Security Income (SSI) monthly benefit amounts under title XVI of the Act for 2008 to $637 for an eligible individual, $956 for an eligible individual with an eligible spouse, and $319 for an essential person;
(3) The student earned income exclusion to be $1,550 per month in 2008 but not more than $6,240 in all of 2008;
(4) The dollar fee limit for services performed as a representative payee to be $35 per month ($68 per month in the case of a beneficiary who is disabled and has an alcoholism or drug addiction condition that leaves him or her incapable of managing benefits) in 2008;
(5) The dollar limit on the administrative-cost assessment charged to attorneys representing claimants to be $79 in 2008;
(6) The national average wage index for 2006 to be $38,651.41;
(7) The Old-Age, Survivors, and Disability Insurance (OASDI) contribution and benefit base to be $102,000 for remuneration paid in 2008 and self-employment income earned in taxable years beginning in 2008;
(8) The monthly exempt amounts under the Social Security retirement earnings test for taxable years ending in calendar year 2008 to be $1,130 and $3,010;
(9) The dollar amounts (``bend points'') used in the primary insurance amount benefit formula for workers who become eligible for benefits, or who die before becoming eligible, in 2008 to be $711 and $4,288;
(10) The dollar amounts (``bend points'') used in the formula for computing maximum family benefits for workers who become eligible for benefits, or who die before becoming eligible, in 2008 to be $909, $1,312, and $1,711;
(11) The amount of taxable earnings a person must have to be credited with a quarter of coverage in 2008 to be $1,050;
(12) The ``old-law'' contribution and benefit base to be $75,900 for 2008;
(13) The monthly amount deemed to constitute substantial gainful activity for statutorily blind individuals in 2008 to be $1,570, and the corresponding amount for non-blind disabled persons to be $940;
(14) The earnings threshold establishing a month as a part of a trial work period to be $670 for 2008; and
(15) Coverage thresholds for 2008 to be $1,600 for domestic workers and $1,400 for election workers.

4 comments:

Anonymous said...

SSA shouldn't be involved with attorney fees in the first place. If an attorney wants to represent a claimant, it should be between them how much the fee will be and up to the representative to collect the fee from the claimant.

Plus from what I remember the processing fee was reduced to $75.00, so it going up to $79.00 is still way below the original amount.

Anonymous said...

If you aren't happy with the $5,300, file a fee petition to justify you deserve more.

Anonymous said...

The majority of the attorneys do very little to "earn" the $5300 fee - they rely on the SSA field office employees to help the claimants complete forms. The only forms that are completed thoroughly are the 1696 and fee agreement.

Anonymous said...

If you think filling out forms is the only thing that has to happen too you are sadly mistaken. If the Social Security offices were doing such a bang up job, there would be no need for Social Security attorneys. My phone rings off the hook. (and I answer it) It's called job security. Keep on doing what you're doing. I'm amazed anyone makes it through the process on their own, without representation. Trust me, attorneys earn every penny.