Final Rule: Paternity Establishment Percentage Performance Relief

ACTION TRANSMITTAL

AT-22-03

DATE:  May 27, 2022

TO:  State IV-D Agencies

SUBJECT:  Final Rule: Paternity Establishment Percentage Performance Relief

The Paternity Establishment Percentage Performance Relief final rule was published on May 27, 2022, in the Federal Register, Volume 87, Number 103 on page 32090  (PDF).

Effective immediately, this final rule responds to the negative effect of the COVID-19 public health emergency on state child support operations. The final rule modifies the Paternity Establishment Percentage (PEP) from the 90% performance threshold to 50% for Federal Fiscal Years (FFY) 2020, 2021, and 2022 for a state to avoid a financial penalty. The final rule also provides that adverse findings of data reliability audits of a state’s paternity establishment data will not result in a financial penalty in FFYs 2020, 2021, and 2022.

FFY 2020 PEP “warning” letters: In April, prior to publication of this final rule, OCSE notified states that had not met PEP performance standards for FFY 2020 that they may be subject to penalties if they did not make sufficient performance improvement in FFY 2021. This Action Transmittal provides notice that child support programs are no longer subject to the penalties outlined in the warning letters several states received in April 2022. 

The end of the relief period: According to the final rule, “after the relief period, starting for FFY 2023, the PEP performance thresholds will revert back to the usual levels described under section 452(g) of the [Social Security] Act and 45 CFR 305.40(a)(1), and states will once again be subject to penalties for adverse data reliability audit findings related to the PEP measure after an automatic corrective action year as specified in 45 CFR 305.42.”

No change to reporting, audits, or incentives procedures: As noted in the final rule, “[t]he regulation provides relief from the PEP measure and data reliability audit penalties but does not otherwise change the process for other performance measures, data collection, and reporting, audits, or incentives.” States should continue to report data on the OCSE-396, OCSE-34, and OCSE-157 forms, according to OCSE’s timeline and instructions, and as required by sections 409, 452(a) and (g), 458, and 469 of the Act and 45 CFR Part 305. OCSE will conduct audits as usual and will calculate and provide incentive payments based on the data.

OCSE acknowledges the unprecedented challenges state child support programs have faced these last several years managing their programs during the COVID-19 public health emergency. Thank you for your commitment and care for the families and children in your program.

ACTION REQUIRED: No action required

REFERENCES:  45 CFR 305  

EFFECTIVE DATE: Effective immediately

INQUIRIES: Please contact your ACF OCSE Regional Program Manager

Tanguler Gray 
Commissioner
Office of Child Support Enforcement