Understanding Social Security Fees and Retroactive Benefits


FEES AND RETROACTIVE BENEFITS IN SOCIAL SECURITY CASES

Social Security Attorney Fees

People often ask, “How am I supposed to pay for a Social Security attorney when I am disabled and can’t work?” The good news is that there is a fair solution to all involved in this process. Social Security attorneys are paid on a contingency fee basis. This means you do not have to pay your lawyer unless you win your case, only if you win your case, and only at the end of your case.

Under the Social Security Act, your attorney is paid a maximum of $6,000.00, or 25% of your retroactive benefits, whichever is less. The fee is taken out of money that you should have been paid for the time period you were off of work. The start date of back money begins five months from the date you became disabled and terminates up to the date you are awarded benefits. For instance, if you became disabled in January 2008 and an Administrative Law Judge awarded you benefits in June 2010, you would be awarded retroactive, monetary benefits from May 2008 through June 2010. Your attorney’s fee would be taken out of this lump sum of money (usually by the Social Security Administration) to pay the lawyer fee.

Attorney’s fees are highly regulated in the Social Security system. Before a fee can be released to your attorney, their fee contract must be approved by the SSA to make sure it complies with Social Security laws. This is a consumer friendly rule that helps ensure the public has signed a valid fee contact with their attorney.

What are Back Benefits and How Much Will They Be?

Social Security back benefits, also known as retroactive benefits, is a lump sum of money payable for the time period you were disabled and should have been paid social security disability benefits, but were not paid because you were waiting for a decision on your case. How the Social Security Administration calculates these benefits depends on 1) whether you have applied for SSI or SSD; 2) when you became disabled; and 3) when you filed your applications for SSI and/or SSD benefits. The amount will also depend on how much you are owed on a monthly basis in disability benefits (found in your Social Security Statement), or could be owed under Supplemental Security Income (more of a welfare system).

Should you ever become disabled, it is important that you file for disability benefits as soon as possible. Money can only be payable back to the date of application for SSI benefits, and only up to 12 months prior to the application for SSD benefits (provided you onset date of disability is BEFORE the date you file your application).

An example of not receiving retroactive pay all the way back to the date you last worked would include the following. Assume you stopped working in January 2006. However, you decided not to file an application for SSD benefits until January 2009. If you are awarded Social Security benefits, your retroactive benefits will only go back to May 2008 (one year prior to date of application, plus five months forward for date entitlement could start). You would be losing several months worth of money because you waited too long to apply for benefits. So you can see why it’s so important to file for disability benefits (at least from a monetary standpoint) as soon as you become disabled.

Our attorneys at Greenberg & Bederman are always willing to discuss these issues with you to give you a personalized evaluation. Call us now for a free social security disability case consultation.