While we knew it was coming, it still surprised me to see that Social Security had released a
form fee agreement last month that attorneys representing Social Security claimants can use. This is not mandatory. Attorneys and others representing Social Security claimants can always draft their own forms. I guess I was expecting some announcement.
Here's the key language from the form:
If SSA favorably decides my claim(s) and the decision results in past-due (retroactive) benefits, I agree to pay my
representative(s) a fee that does not exceed the lesser of 25 percent of my past-due benefits or the maximum dollar amount
allowed under the Social Security Act Section 206(a)(2), or such higher amount set by the Commissioner of Social Security based
on the date Social Security Administration (SSA) authorizes my representative’s fee.
Choose One:
I agree to pay the maximum fee as stated in the preceding paragraph. ($6000 as of 2018).
I agree to pay less than the maximum $________________ or _____________%.
Read and acknowledge the following:
I understand that I, my eligible spouse, any affected auxiliary beneficiary, my representative or the decision maker
have the right to protest the fee authorized under this fee agreement, in writing, within 15 days from the authorization.
I understand that my representative may still request a fee even if my case does not result in past-due benefits, or the decision is
not favorable. If the fee agreement cannot be approved because there are no past-due benefits or for other reasons, my
representative may file a fee petition to request that SSA authorize a fee. I also understand that if there are no past-due benefits
withheld, if not enough past-due benefits are withheld, or if my representative is not eligible for direct payment by SSA, I will be
responsible to pay the authorized fee to my representative(s) directly. SSA does not authorize out-of-pocket costs and expenses
for which I am responsible to pay directly to my representative.
Two-Tiered Fee Agreement
If SSA favorably decides my claim(s) above the ________________ administrative level, this fee agreement is void and my
representative(s) may seek a higher fee by filing a fee petition. SSA must authorize this fee.
Escrow/Trust Accounts or Third-party Payments
With my consent my representative(s) has/have or will establish an escrow/trust account in the amount of
$__________
My representative will receive a fee from another party (e.g., state, county, private entity) for $__________ and I will have no financial responsibility to pay any fee, unless SSA authorizes the total fee
Note that this is written in fluent bureaucratese. Perhaps, because it is a Social Security form our clients will just accept it without giving us trouble but imagine the typical 10th grade dropout understanding it. Well, if you work at Social Security maybe you can't imagine that and maybe that's why this form is written in such stilted language. The form is also flatly inaccurate because it indicates that only the Social Security Administration can authorize a fee in a two-tiered fee agreement situation. No, a federal court can also authorize a fee.
From Media Matters: