[Federal Register Volume 67, Number 12 (Thursday, January 17, 2002)]
[Notices]
[Page 2477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1223]


=======================================================================
-----------------------------------------------------------------------

SOCIAL SECURITY ADMINISTRATION


Maximum Dollar Limit in the Fee Agreement Process

AGENCY: Social Security Administration.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Social Security Administration (SSA) is announcing that 
the maximum dollar limit for fee agreements approved under sections 
206(a)(2)(A) and 1631(d)(2)(A) of the Social Security Act will be 
increased to $5,300 effective February 1, 2002. On or after February 1, 
2002, decision-makers may approve fee agreements up to the new limit 
provided that the fee agreement otherwise meets the statutory 
conditions and is not excepted from the fee agreement process.

FOR FURTHER INFORMATION CONTACT: John B. Watson, Office of the General 
Counsel, phone (410) 965-3137, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: Section 5106 of Public Law No. 101-508, the 
Omnibus Budget Reconciliation Act of 1990, amended sections 
206(a)(2)(A) and 1631(d)(2)(A) of the Social Security Act to provide 
for a streamlined process for obtaining approval of the fee a 
representative wishes to charge for representing a claimant before the 
Social Security Administration. To use that process, the representative 
and the claimant must agree, in writing, to a fee that does not exceed 
the lesser of 25% of past due benefits or a prescribed dollar amount. 
Public Law 101-508 established the initial amount at $4,000 and gave 
the Commissioner of Social Security the authority to increase it, from 
time to time, provided that the cumulative rate of increase does not at 
any time exceed the rate of increase in primary insurance amounts since 
January 1, 1991. The law further provided that notice of any increased 
amount shall be published in the Federal Register.
    By this notice, we announce that the maximum dollar amount for fee 
agreements will increase to $5,300; fee agreements with the increased 
amount may be approved by a decision-maker on or after February 1, 
2002. The limit of $5,300 was determined by applying the guideline 
described above: a hypothetical primary insurance amount of $4,000 on 
January 1, 1991 would increase by calendar year 2002 to $5,350. We 
rounded this amount down to the nearest $100 to simplify the figure for 
use by claimants, representatives, and SSA.

    Dated: January 8, 2002.
Jo Anne B. Barnhart,
Commissioner of Social Security.
[FR Doc. 02-1223 Filed 1-16-02; 8:45 am]
BILLING CODE 4191-02-P