$250 Checks Are Coming May 2009

The Economic Recovery Act requires SSA to make a one-time payment of $250 to Social Security and Supplemental Security Income beneficiaries. The check should arrive in May 2009. No action is necessary to receive the payment.

If you receive your benefit by mail, a check will be mailed. If you receive your benefits by direct deposit, the $250 will be direct deposited to your account.

If you receive SSI and SSDI, you will only get one payment of $250. These payments do not count as income for tax purposes. The payments also will be sent to retirees. If a husband and wife both receive retirement benefits, each of them will receive a $250 check.

DO NOT CONTACT SSA ABOUT THIS ONE TIME PAYMENT UNLESS IT IS JUNE AND YOU HAVE NOT RECEIVED YOUR PAYMENT. For more complete information on this one time payment, watch a short video.

Attorney Fee Cap Raised to $6,000

The Commissioner of the Social Security Administration, Michael J. Astrue (pictured here) is "increasing the maximum dollar amount limit for fee agreements ... to $6,000." The increase will be effective June 22, 2009.

This is the first time that the maximum fee has been increased in about 8 years. At that time, it was raised to $5,300. Legislation is currently pending in the House of Representatives to establish cost of living adjustments annually to the fee cap.

My current and future clients need not worry about this change. I will not be trying to change or amend existing fee agreements. Some of the newer clients have fee agreements that already spell out that the maximum is $5,300 "including any increases by statute or regulation." All future agreements will contain that language.