Changes in the Calculation of Incentive Payments
Changes in the calculation of incentive payments resulting from the enactment of Tax Equity and Fiscal Responsibility Act of 1982
September 15, 1983
TO :STATE AGENCIES ADMINISTERING CHILD SUPPORT ENFORCEMENT PLANS UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT, AND OTHER INTERESTED INDIVIDUALS
SUBJECT: Changes in the calculation of incentive payments resulting from the enactment of Tax Equity and Fiscal Responsibility Act of 1982.
ATTACHMENTS: Attached is a facsimile copy of the OCSE Quarterly Report of Collections, Form OCSE-34.
PURPOSE: Section 174 of the Tax Equity and Fiscal Responsibility Act of 1982 enacted September 3, 1982 includes a provision to reduce the rate at which incentive payments are calculated from 15 to 12 percent.
This Action Transmittal contains the changes to the financial reporting form that are required to accommodate this provision for fiscal year 1984.
SUPERSEDED MATERIAL: The following changes are to be made to the OCSE Quarterly Report of Collections, Form OCSE-34:
1) Front: No changes required
2) Back (Instructions):
- Item 11: Change both references to "15%" to read $12%".
EFFECTIVE DATE: Incentive payments are to be calculated at the 12 percent rate for all eligible collections made on or after October 1, 1983.
ACTION REQUIRED: Beginning with the Quarterly Report of Collections submitted for the quarter ended December 31, 1983, incentive payments reported in item 11 should be calculated at the 12% rate for all AFDC collections made during that quarter. Incentive payments for collections that were made and enforced prior to October 1, 1983 may continue to be calculated at the 15% rate. Where both rates are used, a footnote or attachment should explain why and indicate the amount of incentive payments calculated at each rate.
RELATED MATERIAL: OCSE Action Transmittal, OCSE-AT-82-09, dated September 9, 1982.
INQUIRED TO: OCSE Regional Representatives
Office of Child Support
The form can be obtained by contacting the National Training Center, OCSE, Washington, D.C.