Reduction of the Unreimbursed Assistance Balance when Permanently-Assigned Arrearages are Compromised
POLICY INTERPRETATION QUESTIONS
DATE: May 18, 2005
TO: State IV-D Directors
FROM: David H. Siegel Acting Commissioner Office of Child Support Enforcement
SUBJECT: Reduction of the Unreimbursed Assistance Balance (URA) when Permanently-Assigned Arrearages are Compromised.
BACKGROUND: In PIQ-00-03, issued September 14, 2000, we provided guidance on compromising arrearages permanently assigned to the state as a condition of receipt of public assistance as a tool to encourage the regular payment of current support by low-income obligors. The PIQ was silent on whether the unreimbursed assistance (URA) balance should be adjusted when arrearages are compromised. Several states have established state laws and guidelines for compromising arrearages.
QUESTION: When permanently-assigned arrearages are compromised by the state, must the URA balance be reduced by an amount equal to the amount of arrearages compromised by the state?
ANSWER: If, in accordance with state law or procedures, permanently-assigned arrearages are compromised by the state, we encourage states to reduce the URA balance by an amount equal to the amount of permanently-assigned arrearages compromised by the state. The state IV-D agency should coordinate with its state IV-A counterparts on procedures to ensure that URA amounts are reduced by the amount of compromised assigned-arrearages.
cc: ACF Regional Administrators
Regional Program Managers