Notice2024-10248

Maximum Dollar Limit in the Fee Agreement Process

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
May 10, 2024

Issuing agencies

Social Security Administration

Abstract

We are increasing the maximum dollar amount limit for fee agreements approved under the Social Security Act (the Act) to $9,200. Effective November 30, 2024, we may approve fee agreements up to the new dollar limit, provided that the fee agreement otherwise meets the statutory conditions of the agreement process.

Full Text

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<title>Federal Register, Volume 89 Issue 92 (Friday, May 10, 2024)</title>
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[Federal Register Volume 89, Number 92 (Friday, May 10, 2024)]
[Notices]
[Pages 40523-40524]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-10248]


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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2024-0009]


Maximum Dollar Limit in the Fee Agreement Process

AGENCY: Social Security Administration.

ACTION: Notice.

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SUMMARY: We are increasing the maximum dollar amount limit for fee 
agreements approved under the Social Security Act (the Act) to $9,200. 
Effective November 30, 2024, we may approve fee agreements up to the 
new dollar limit, provided that the fee agreement otherwise meets the 
statutory conditions of the agreement process.

DATES: We will apply this notice beginning on November 30, 2024.

FOR FURTHER INFORMATION CONTACT: Mary Quatroche, Office of Vocational, 
Evaluation, and Process Policy in the Office of Disability Policy, 
Social Security Administration, 6401 Security Boulevard, Baltimore, MD 
21235-6401, (410) 966-4794.
    For information on eligibility or filing for benefits, call the 
Social Security Administration's (SSA) national toll-free number, 1-
800-772-1213 or TTY 1-800-325-0778, or visit SSA's internet site, 
Social Security Online at <a href="http://www.socialsecurity.gov">http://www.socialsecurity.gov</a>.

SUPPLEMENTARY INFORMATION: The Act provides a streamlined process for a 
representative to obtain approval of the fee the representative wishes 
to charge for representing a claimant before us.\1\ To use that fee 
agreement process, the representative(s) and the claimant must agree, 
in a signed writing, to a fee that does not exceed the limit set by the 
statute, which is the lesser of 25 percent of past due benefits or a 
prescribed dollar amount. Section 5106 of the Omnibus Budget 
Reconciliation Act (OBRA) of 1990, Public Law 101-508, set the initial 
fee amount at $4,000 and gave the Commissioner the authority to 
increase it periodically, provided that the cumulative rate of increase 
did not at any time exceed the rate of increase in the primary 
insurance amount (PIA) since January 1, 1991. The law further provided 
that notice of any increased amount shall be published in the Federal 
Register. On June 30, 2022, we published a notice raising the maximum 
fee to $7,200, effective November 30, 2022, which is the current 
maximum dollar amount for fee agreements.\2\
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    \1\ 42 U.S.C. 406(a) and 1383(d)(2)(A).
    \2\ 87 FR 39157 (2022).
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    With this notice, we announce that the maximum dollar amount under 
the fee agreement process, will increase to $9,200, effective November 
30, 2024. This increase does not exceed the rate of increase provided 
in the OBRA of 1990. We expect that this increase will compensate 
representatives for their services while ensuring claimants are 
protected from excessive fees. In setting the new cap, we considered a 
number of factors, including: data about fees authorized under the 
current fee cap, data about case backlogs, COLA, PIAs, feedback we 
received about the current fee cap, increases in disability benefits, 
and the effects on our claimants.
    Beginning November 30, 2024, decision makers may approve a fee 
agreement up to the new dollar limit if the fee agreement meets the 
statutory conditions for approval, no exceptions to the fee agreement 
process exist, and the favorable determination or decision is issued on 
or after this date. We are setting this date to ensure that there is 
adequate time to provide training and guidance to our employees and to 
make the necessary changes in our information technology 
infrastructure.
    Starting in January 2026, along with our announcements of other 
cost of living adjustments (COLA) (e.g., for title II benefits, title 
XVI payments, or the appointed representative fee assessment), we will 
annually address the maximum dollar amount for fee agreements and 
provide a rationale for either increasing or not increasing the maximum 
dollar amount based upon the annual COLA for the prior year. Future 
increases will not exceed the rate of increase provided in the OBRA of 
1990. We expect that future increases will compensate representatives 
for

[[Page 40524]]

their services while ensuring claimants are protected from excessive 
fees.
    The Commissioner of the Social Security Administration, Martin 
O'Malley, having reviewed and approved this document, is delegating the 
authority to electronically sign this document to Jennifer L. Dulski, 
who is a Federal Register Liaison for SSA, for purposes of publication 
in the Federal Register.

Jennifer L. Dulski,
Federal Register Liaison, Office of Legislation and Congressional 
Affairs, Social Security Administration.
[FR Doc. 2024-10248 Filed 5-9-24; 8:45 am]
BILLING CODE 4191-02-P


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Indexed from Federal Register on May 10, 2024.

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