[Congressional Record (Bound Edition), Volume 146 (2000), Part 7]
[Extensions of Remarks]
[Pages 10306-10307]
[From the U.S. Government Publishing Office, www.gpo.gov]



IMPROVING SOCIAL SECURITY'S PAYMENT SYSTEM FOR CLAIMANT REPRESENTATIVES

                                 ______
                                 

                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                          Friday, June 9, 2000

  Mr. SHAW. Mr. Speaker, today I am introducing legislation that if 
enacted would update and improve Social Security's payment systems for 
claimant representatives.
  Currently, many would-be beneficiaries hire attorneys to help them 
file applications for Social Security retirement and, most commonly, 
disability benefits. That this process is so complex people feel 
obligated to hire an attorney to help them is in itself a serious 
problem. It is especially troubling given the expected rapid growth in 
the number of applicants and beneficiaries with the aging and eventual 
retirement of the Baby Boomers. So much work remains in the area of 
simplifying the application process, which will benefit applicants, 
SSA, and ultimately taxpayers. For now, though, a good start would be 
finding a better way to pay claimants' representatives and to have SSA 
process this workload as quickly and efficiently as possible.

[[Page 10307]]

  First some background. Some Members may be aware that attorneys can 
choose to have SSA directly pay their fees for representing claimants 
for Social Security disability benefits. In such cases, when the 
claimant is awarded past-due benefits SSA withholds the appropriate 
attorney's fee from the benefits that are owned the claimant, and sends 
the fee directly to the attorney. Prior to this year, no charge was 
made for SSA costs in processing, withholding, and forwarding this fee.
  This was changed under a proposal originally made by the Clinton 
Administration that was incorporated in the Ticket to Work and Work 
Incentives Improvement Law, which is designed to help disabled 
individuals enter or return to the workforce. This law provides new 
medical and employment services to help individuals with disabilities 
find and keep jobs without fear of losing important benefits once they 
leave the disability rolls. That's a critical goal, and one that 
requires additional resources. In determining ways to pay for the added 
benefits in the ``Ticket'' law, many people on both sides of the aisle 
thought that having lawyers--rather than the Social Security trust 
funds--pick up the tab for Social Security's costs in processing their 
paychecks was appropriate. Thus a version of the original 
Administration proposal on attorney fees was included in the final 
conference agreement on the Ticket bill approved by the House of 
Representatives 418-2 on November 18, 1999.
  As this legislation progressed, several changes were made that 
improved the original proposal. For example, the General Accounting 
Office is required to study whether the assessment should be linked to 
how quickly SSA processes fees and whether the assessment will reduce 
the number of claimant representatives available to assist these 
claimants, among other issues.
  The legislation I am introducing addresses this issue and thus can 
serve as the basis for further discussion and possible legislation on 
this point. In short, my legislation would specify that Social Security 
could impose an assessment on an attorney's fee only if the fee was 
processed and approved for payments within 30 days after the 
Commissioner certifies the payment of the claimant's benefits. This 
will encourage Social Security to handle this work promptly. If they 
don's SSA will lose money and attorneys will not be charged their 
assessment. Hopefully it will not come to that, but in the past SSA has 
not had a stellar record in terms of processing this workload in a 
timely fashion.
  Introducing this legislation now will serve to further discussion on 
this topic, especially in anticipation of an upcoming hearing I plan to 
hold in the Social Security Subcommittee on additional process reforms. 
Suggested reforms include: the consideration of a flat fee as opposed 
to a percentage of past-due benefits, the extension of the attorney's 
fee direct payment provisions to the Supplemental Security Income 
program, the issuance of past-due benefits and the attorney's fee in a 
joint check made payable to the beneficiary and the attorney and the 
application of Prompt Payment Act provisions to past-due benefits and 
attorney fee payments. These suggested reforms follow this statement in 
legislative form.
  I would appreciate any comments or suggestions for additional 
provisions my colleagues or other informed individuals may have on this 
issue, and of course would welcome cosponsors to this legislation. 
Already we have heard from many claimant representatives, and I would 
expect to hear from many more as we move on with this issue.

       Suggested Provisions for Attorney Fee Payment Legislation


              Streamlining of Attorney Fee Payment System

       (a) Maximum Limit on Assessments.--Section 206(d)(2)(A) of 
     the Social Security Act (42 U.S.C. 406(d)(2)(A)) is amended--
       (1) by striking ``equal to'' and inserting ``equal to the 
     lesser of--'';
       (2) by striking ``the product obtained'' and inserting the 
     following: ``(i) the product obtained'';
       (3) by striking ``subparagraph (B).'' and inserting 
     ``subparagraph (B), or''; and
       (4) by adding at the end the following new clause: ``(ii) 
     $25.00.''
       (b) Issuance of Joint Checks.--
       (1) In General.--Section 206 of such Act (42 U.S.C. 406) is 
     amended by adding at the end the following new subsection:
       ``(e) Issuance of Joint Checks.--In any case in which a 
     claimant is determined to be entitled to past-due benefits, 
     and such claimant is represented by an attorney for whom a 
     fee for services is required to be certified under this 
     section in connection with such benefits, the payment of such 
     past-due benefits shall be in the form of a joint check made 
     payable to both the claimant and the attorney in an amount 
     equal to the total amount of such past due benefits, which 
     shall be sent to the claimant's attorney. Receipt by the 
     claimant's attorney of the proceeds of such check in an 
     amount equal to the fee for services certified for payment by 
     the Commissioner pursuant to subsection (a)(4)(A) or 
     (b)(1)(A) in connection with such past-due benefits shall 
     constitute receipt by the attorney of such fee.''.
       (2) Assessment on Attorney Contingent Upon Timely Receipt 
     of Payment.--Section 206(d)(3) of such Act (42 U.S.C. 
     406(d)(3)) is amended--Section 206(d)(3) of such Act (42 
     U.S.C. 406(d)(3)) is amended--
       (1) by striking ``The Commissioner'' and inserting the 
     following:
       ``(A) In General.--The Commissioner''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Imposition and Collection of Assessment Contingent 
     Upon Timely Receipt of Check.--The Commissioner may impose 
     and collect the assessment under this subsection in 
     connection with any past-due benefits only if the joint check 
     required under subsection (e) in connection with such 
     benefits is received by the attorney within 45 days after the 
     certification by the Commissioner for payment of such 
     benefits.''.

      Extension of Attorney Fee Payment System To Title XVI Claims

       (a) In General.--Section 1631(d)(2)(A) of the Social 
     Security Act (42 U.S.C. 1383(d)(2)(A)) is amended--
       (1) by striking ``paragraph (2)'' and inserting 
     ``subsections (a)(2) and (b)(1)(B)'';
       (2) by striking ``section 406(a) (other than in paragraph 
     (4) thereof)'' and inserting ``section 406'';
       (3) in clause (i), by striking ``subparagraphs (A)(ii)(I) 
     and (C)(i)'' and inserting ``subsections (a)(2)(A)(ii)(I), 
     (a)(2)(D)(i), and (b)(1)(B)'', by striking ``as determined'', 
     by striking ``1127(a))'' and inserting ``1127(a)'', and by 
     striking ``the parenthetical phrase contained therein'' and 
     inserting ``the phrase `before any applicable reduction under 
     section 1127(a)' ''; and
       (4) in clause (ii), by inserting ``, in subsections 
     (a)(2)(B) and (b)(1)(A)(i), the phrase'' after 
     ``substituting'', and by inserting ``the phrase'' after 
     ``for''.

      Extension of the Prompt Payment Act to the Social Security 
        Administration's Claims and Attorney Fee Payment Systems

       (a) In General.--Section 3901 of title 31, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(e)(1) This chapter applies to the Social Security 
     Administration with regard to delays in the payment of claims 
     under Title II and Title XVI of the Social Security Act and 
     to the certification for the payment of fees to attorneys 
     under sections 206 and 1631(d)(2) of the Social Security Act 
     (treating, for purposes of this chapter, the required 
     certification by the Commissioner of Social Security for 
     payment of any fees as a required payment by the Commissioner 
     of such fees).
       ``(2) In applying this chapter to the Social Security 
     Administration pursuant to paragraph (1)--
       ``(A) the date of issuance of the award certificate by the 
     Social Security Administration shall be deemed to start the 
     payment period under 5 CFR 1315.4(f); and
       ``(B) the documentation required by the Social Security 
     Administration to certify a claim or fee payment under title 
     42, United States Code shall be deemed to satisfy the 
     documentation requirement of 5 CFR 1315.9''.

     

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