Social Security earlier announced the 1.3% COLA (Cost of Living Adjustment) for benefits for 2021. Tomorrow the agency will publish a more complete notice about all of the COLA adjustments in the Federal Register tomorrow. Perhaps the item on that list that will attract the most attention, at least from one group, is the increase in the maximum user fee charged to attorneys and others who represent claimants before the agency. That amount goes up to $98 beginning in December. The user fee is deducted from the fees that the attorneys receive.
Of course, no adjustment was made in the maximum fee that attorneys may charge their clients under the fee agreement process. My understanding of Social Security's position on that is that they will consider raising that amount once it is reliably reported to them that representation has disappeared. We may be in a situation comparable to that which once existed for representation of veterans. In 1864 Congress passed a $10 cap on attorney fees for attorney representation in veterans benefits matters. That may have been reasonable at the time. However, no adjustment was made in that cap for 120 years! That cap protected veterans so well that attorney representation in veterans benefits cases disappeared apart from pro bono representation. I imagine that there are those at Social Security who would be happy to see the same thing happen at Social Security.