Social Security Announces Increase to Fee Cap for Social Security Disability Representatives

Posted November 29, 2022 by Premier Disability Services, LLC®

For the last thirteen years, the maximum fee allowed by the Social Security Administration (SSA) under the fee agreement process has been $6,000.  SSA has recently announced an increase to the maximum fee allowed under the fee agreement process.  Effective November 30, 2022, the maximum fee a representative can charge will be raised to $7,200. 

The Social Security Administration cited multiple reasons for increasing the fee cap; including the cost of living adjustment (COLA) rates, inflation, PIA data, and feedback from Social Security representatives.  Notably, while there is often an annual cost of living adjustment for Social Security disability beneficiaries, the November 2022 fee cap increase will be only the third of its kind in the last twenty years. 

The new fee cap applies to any case that is decided favorably on or after November 30, 2022, regardless of when that case was filed.  Many representatives have “escalator” language built into their fee agreement that expressly allows for payment of the increased fee cap.  In particular, our firm’s fee agreement specifically states that we are charging a fee equal to the lesser of 25% of a client’s back pay award or the maximum amount allowed by the Social Security Administration.    

If you have a pending claim for Social Security Disability benefits, or you are getting ready to file a claim for benefits, it is likely that the new fee cap will apply to your claim.  If you have any questions about the increase to the fee cap, your appointed representative will be able to assist with you. 

By: Devon Brady of Premier Disability Services, LLC®