# Presentation: 242600

## Distribution of Child SupportunderPRWORA of 1996andBBA of 1997

- Distribution of Child SupportunderPRWORA of 1996andBBA of 1997

**Notes:**
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Display this slide before beginning the assignment module.

## Assignment of Support Rights

- To receive assistance, a custodial parent must assign to the State any right to support payments

**Notes:**
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The old assignments required families to assign ALL past due support to the State.  The new assignment treats arrears that accrue prior to the assistance period differently.  Such arrears will become TEMPORARILY ASSIGNED to the State during the assistance period.   Thus, assigned arrears can potentially shift from the State to the family.

Since pre-assistance arrears will no longer be assigned to the State once the family leaves assistance, total amounts assigned to the State will decrease the amounts States may retain for reimbursement of public assistance expenditures.

## Limitation on Assignments

- The limitation on assignments is based on:
- the total accumulated unreimbursed assistance, OR
- the total amount of unpaid child support, whichever amount is LESS

**Notes:**
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PRWORA as passed in August 1996 mandated that the new requirements be phased-in, beginning October 1, 1997.  The technical amendments contained in H.R. 2015 allow States to implement the changes all at once on October 1, 1998.  We’ll cover the option available under Plan A first.

## Former Distribution Rules

- first $50 of current support paid to family
- Fed/St Gov’ts reimbursed for AFDC benefit paid to family
- excess to family up to current months CS obligation (formerly B-3 payment)
- excess to State for reimbursement (split between Fed/St Gov’ts)

## GAP Payment

- States required to make supplemental payments are often referred to as “fill-the-gap" States.
- These States pay less assistance than their full need standard

## Policy Options

- Several policy options available to the State
- Not all States may choose the same options

## Review Policy Options Available to States

- Current Assistance Cases
- $50 Passthrough
- Excess Over Grant
- Order of assigned arrearage application

## Review Policy Options Available to States

- Choose “Plan A”
- Systems modifications by 10/1/97
- Additional systems modifications by 10/1/2000
- Temporarily Assigned Arrears 1997-2000
- Choose “Plan B”
- Systems modifications delayed until 10/1/98
- Loss of Temporarily Assigned arrears

## New Arrears Terminology

- Permanently Assigned Arrears
- Temporarily Assigned Arrears
- Conditionally Assigned Arrears
- Never Assigned Arrears
- Unassigned Arrears

## Permanently Assigned Arrears

- those arrears that are assigned at the time the family applies for assistance
- any arrears which accrue during periods of assistance

## Temporarily Assigned Arrears

- accrued prior to the family receiving assistance
- were assigned to the State after 9/30/97

## Conditionally Assigned Arrears

- were temporarily assigned ; and
- revert back to the family on:
- October 1, 2000 or
- the date the family leaves the assistance program, whichever date is later

## Never Assigned Arrears

- Never-Assigned arrearages are the same type of arrears we used to call “non-assistance arrearages

## Unassigned Arrears

- arrears which revert back to the family when the family is no longer receiving assistance.

## Current Distribution Rules

- $50 passthrough not required
- Beginning 10/1/97 CS collections are paid to family (unless it was an IRS Tax Refund Offset)
- Beginning 10/1/2000 (Plan A) or 10/1/98 (Plan B), CS collections are applied to pre-assistance arrears and paid to State if it was an IRS Tax Refund Offset