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FY2013 Preliminary Report

Office of Child Support Enforcement

Published: April 1, 2014
Information About:
State/Local Child Support Agencies, Tribal Child Support Agencies
Topics:
Federal Reporting, OCSE-157 Annual Data Report, OCSE-34A Quarterly Report of Collections, OCSE-396A Financial Report, OCSE-75 Tribal Annual Data Report
Types:
Research & Data, Annual Reports to Congress

Table of Contents

Summary Tables


Appendix

Incentive Formulas

CSPIA Incentive Measure Formulas
INCENTIVE MEASURE FORM AND LINE NUMBERS
PATERNITY ESTABLISHMENT PERCENTAGE (PEP): IV-D
Number of Children in the Caseload in the FY or as of the End of the FY Who Were Born Out-of-Wedlockwith Paternity Established or Acknowledged
divided by
Number of Children in the Caseload as of the End of the Preceding FY Who Were Born Out-of-Wedlock
OCSE-157, Line 6
divided by
OCSE-157, Line 5a
PATERNITY ESTABLISHMENT PERCENTAGE (PEP): STATEWIDE
Number of Minor Children in the State Born Out-of-Wedlock with Paternity Established or Acknowledged During the FY
divided by
Number of Children in the State Born Out-of-Wedlock During the Preceding FY
OCSE-157, Line 9
divided by
OCSE-157, Line 8a
SUPPORT ORDER ESTABLISHMENT
Number of IV-D Cases with Support Orders
divided by
Number of IV-D Cases
OCSE-157, Line 2
divided by
OCSE-157, Line 1
CURRENT COLLECTIONS
Amount Collected for Current Support in IV-D Cases
divided by
Amount Owed for Current Support in IV-D Cases
OCSE-157, Line 25
divided by
OCSE-157, Line 24
ARREARAGE COLLECTIONS
Number of IV-D Cases Paying Toward Arrears
divided by
Number of IV-D Cases with Arrears Due
OCSE-157, Line 29
divided by
OCSE-157, Line 28
COST-EFFECTIVENESS
Total IV-D Dollars Collected
divided by
Total IV-D Dollars Expended
OCSE-34A, Lines 4b + 4c + 8 + 11 of column (G)
divided by
OCSE-396A, Line 7 columns (A) + (C)
less Line 1(c) columns (A) + (C)
STATE COLLECTION BASE
2 times (Current Assistance + Former Assistance Collections + Medicaid Assistance)
+ Never Assistance Collections
+ Fees Retained by Other States
OCSE-34A:
2 times ((Line 4b, columns A+B+C+D+E)
+ (Line 8, columns A+B+C+D+E))
+ Line 4b, column F + Line 8, column F
+ Line 4c + 11 of column G

 

How an Incentive Payment is Determined

Because of the complexity of the incentives formula set forth in section 458 of the Social Security Act, we have included an example of how the system would work in a particular year for State A. Let’s make the following assumptions regarding State A (See Table A):

  • State A’s paternity performance level is 93 percent, making its applicable percent 100 percent (see Table C)
  • State A’s order establishment performance level is 74 percent, making its applicable percent 88 percent (see Table C)
  • State A’s current support collections performance level is 59 percent, making its applicable percent 69 percent (see Table D)
  • State A’s arrearage support collections performance level is 60 percent, making its applicable percent 70 percent (see Table D)
  • State A’s cost-effectiveness ratio is $4.40, making its applicable percent 80 percent (see Table E)
  • State A’s collections base is $50 million (determined by 2 times the collections for Current Assistance, Former Assistance, and Medicaid Never Assistance plus Never Assistance collections and fees retained by other states)
  • The maximum incentive for State A is:

    • $50 million collections base for paternity ($50 mil. times 1.00), plus
    • $44 million collections base for orders ($50 mil. times 0.88), plus
    • $34.5 million collections base for current collections ($50 mil. times 0.69), plus
    • $26.25 million collections base for arrearage collections ($50 mil. times 0.751 times 0.70) plus
    • $30.0 million collections base for cost-effectiveness ($50 million times 0.751 times 0.80) equals
    • Resulting in a maximum incentive base amount of $184.75 million for State A.
Table A
Measure State A’s
Performance Level
Applicable Percent
based on
Performance
Weight State A’s
Collection Base
(assumed to be
$50,000,000)
Paternity Establishment 93% 100% 1.00 $50,000,000
Order Establishment 74% 88% 1.00 $44,000,000
Current Collections 59% 69% 1.00 $34,500,000
Arrearage Collections 60% 70% 0.75 $26,250,000
Cost-Effectiveness $4.40 80% 0.75 $30,000,000
State A’s Maximum Incentive Base Amount       $184,750,000

 

We must now make some assumptions regarding the other States. Let’s assume that there are only two other States in our country--and the maximum incentive base amount is $84 million for State B and $50 million for State C, making the total maximum incentive base amount $318.75 million for all three States (See Table B).

  • We must now determine what is State A’s share of the $318.75 million. It is 58 percent ($184.75 divided by $318.75).
Table B
State Maximum Incentive
Base Amounts
State’s Share
of $318,750,000
Incentive Payment
Pool $461,000,000
A $184,750,000 0.58 $267,199,216
B $84,000,000 0.26 $121,487,059
C $50,000,000 0.16 $72,313,725
Totals $318,750,000 1.00 $461,000,000

 

  • Let us assume it is FY 2003, so the incentive payment pool for the FY is $461 million (see table F).
  • Since State A’s share is 0.58, this state has earned 58 percent of the $461 million incentive payment pool that Congress is allowing, or $267.2 million ($461 mil. x 0.58) incentive payment for this particular fiscal year.

If the Paternity Establishment or Support Order Performance Level Is:

Table C2 - Performance Levels
At Least: But Less
Than:
The Applicable
Percentage Is:
At Least: But Less
Than:
The Applicable
Percentage Is:
80%   100% 64% 65% 74%
79% 80% 98% 63% 64% 73%
78% 79% 96% 62% 63% 72%
77% 78% 94% 61% 62% 71%
76% 77% 92% 60% 61% 70%
75% 76% 90% 59% 60% 69%
74% 75% 88% 58% 59% 68%
73% 74% 86% 57% 58% 67%
72% 73% 84% 56% 57% 66%
71% 72% 82% 55% 56% 65%
70% 71% 80% 54% 55% 64%
69% 70% 79% 53% 54% 63%
68% 69% 78% 52% 53% 62%
67% 68% 77% 51% 52% 61%
66% 67% 76% 50% 51% 60%
65% 66% 75% 0% 50% 0%

 

If the Current Collections or Arrearage Collections Performance Level Is:

Table D3 - Performance Levels
At Least: But Less
Than:
The Applicable
Percentage Is:
At Least: But Less
Than:
The Applicable
Percentage Is:
80%   100% 59% 60% 69%
79% 80% 98% 58% 59% 68%
78% 79% 96% 57% 58% 67%
77% 78% 94% 56% 57% 66%
76% 77% 92% 55% 56% 65%
75% 76% 90% 54% 55% 64%
74% 75% 88% 53% 54% 63%
73% 74% 86% 52% 53% 62%
72% 73% 84% 51% 52% 61%
71% 72% 82% 50% 51% 60%
70% 71% 80% 49% 50% 59%
69% 70% 79% 48% 49% 58%
68% 69% 78% 47% 48% 57%
67% 68% 77% 46% 47% 56%
66% 67% 76% 45% 46% 55%
65% 66% 75% 44% 45% 54%
64% 65% 74% 43% 55% 53%
63% 64% 73% 42% 43% 52%
62% 63% 72% 41% 42% 51%
61% 62% 71% 40% 41% 50%
60% 61% 70% 0% 40% 0%

 

If the Cost-Effectiveness Performance Level Is:

Table E4- Cost-Effectiveness Performance Levels
At Least: But Less
Than:
The Applicable
Percentage Is:
5.00   100%
4.50 4.99 90%
4.00 4.50 80%
3.50 4.00 70%
3.00 3.50 60%
2.50 3.00 50%
2.00 2.50 40%
0.00 2.00 0%

 

Table F - Incentive Pool Payment, FY 2001-2013

The incentive payment pool is:

  • $429,000,000 for fiscal year 2001
  • $450,000,000 for fiscal year 2002
  • $461,000,000 for fiscal year 2003
  • $454,000,000 for fiscal year 2004
  • $446,000,000 for fiscal year 2005
  • $458,000,000 for fiscal year 2006
  • $471,000,000 for fiscal year 2007
  • $483,000,000 for fiscal year 2008
  • $504,000,000 for fiscal year 2009
  • $504,000,000 for fiscal year 2010
  • $513,000,000 for fiscal year 2011
  • $526,000,000 for fiscal year 2012
  • $530,000,000 for fiscal year 2013

The incentive payment pool after FY 2008 is the amount of the incentive payment pool for the preceding FY, multiplied by the percentage by which the CPI for that preceding FY exceeds the CPI for the second preceding FY.

The CPI for a FY is the average of the CPI for the 12 month period ending on Sept. 30 of the FY. The CPI means the last CPI for all-urban consumers published by the United States Department of Labor. The NOT seasonally adjusted CPI numbers are used.

The percentage increase between the preceding FY (FY 2008) and second preceding FY (FY 2007) is about 4.44%.   So, $483 million (the FY 2008 incentive pool amount) plus 4.44% equals about $504 million (the FY 2009 incentive pool amount).  The FY 2012 incentive pool amount ($526 million) was established by the budget submitted by the Office of Legislative Affairs and Budget (OLAB).  The FY 2013 estimated incentive pool amount is $530 million.


1 Because the measure has less weight.

2 Use this table to determine the maximum incentive levels for the paternity establishment and support order performance measures.

3 Use this table to determine the maximum incentive levels for the current and arrearage support collections performance measures.

4 Use this table to determine the maximum incentive level for the cost-effectiveness performance measure.

  • OCSE-157 Report
  • OCSE-34A Report
  • OCSE-396A Report
  • OCSE-75 Report