Here's the situation. Person with a Supplemental Security Income (SSI) claim moves from New York to North Carolina, where I am. While in New York he was receiving an interim disability benefit either from NY state or New York City. He's now been approved. His SSI benefits are supposed to be reduced by what's called an interim assistance offset. The money offset is supposed to be paid to the governmental entity that was paying the interim assistance. However, by statute, the amount of the attorney fee is supposed to be based upon the gross amount of the back benefits rather than the net amount after the interim assistance offset. In this person's case, if you take the interim assistance offset and combine it with the computed attorney fee, it comes to more than the past due benefits. Social Security has paid NY its full amount but reduced the attorney fee by the excess.
Can they do that? I couldn't find this question addressed in Social Security's POMS manual. Since I'm in North Carolina, which has no form of interim assistance, rather than NY, I'm not familiar with what Social Security has been doing in these cases.
If they can do this, is there any way of getting reimbursement from NY for the attorney fee that wasn't paid? I recall hearing that NY did this before Congress changed the statute to base the attorney fee on the gross SSI benefit.