TO: STATE AGENCIES ADMINISTERING CHILD SUPPORT ENFORCEMENT PLANS APPROVED UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT, AND OTHER INTERESTED INDIVIDUALS
SUBJECT: Incentive Payments to Political Subdivisions under Section 458(a) of the Act and 45 CFR 302.52
ATTACHMENTS:OCSE-AT-75-05 and PIQ-75-02(CSE) (not available online)
PURPOSE: To clarify whether incentive payments to political subdivisions may made with respect to child support collections used to reimburse assistance payments when:
The case management function, i.e. maintenance of an accounts receivable or monitoring system for child support enforcement cases, and the identification and referral of delinquent cases, is performed by the State IV-D agency; and,
enforcement of delinquent cases is performed by political subdivisions upon referral from the State IV-D agency.
CONTENT: In the statute and regulations cited above and in OCSE-AT-75-5 and PIQ-75-02(CSE) (copies attached), several requirements are set forth which define those situations in which incentive payments may be made to political subdivisions with respect to child support collections made by political subdivisions and used to reimburse assistance.
The following situation has arisen in which it is questioned whether the collections made are eligible for incentives. A State IV-D agency has established a system which monitors child support collections, accounts payments with respect to collections made in those cases in which the political subdivision has taken some enforcement action, Example 5 is inapplicable because it provides that incentives are made to political sub-divisions for all cases only when the enforcement and collection are both performed by a political subdivision.
PIQ-75-02(CSE) sent to all Regional Offices States that a political subdivision is eligible forincentive payments in all cases when:
an office of the political subdivision, the clerk of the local court, is making collections; and
the local prosecutor has agreed to provide enforcement services for those referred to him by the collecting agency,
This PIQ is not applicable because in that situation the political subdivision was making collections in all cases. In the situation outlined in this Action Transmittal, the State is making collections in all cases.
In summary, when the State IV-D agency identifies delinquent cases and refers them to political subdivisions for enforcement, political subdivisions are only eligible for incentive payments for those cases referred, and for which they actually take steps to enforce the support obligation.