Distribution (Sept. 2003)
Question from Field: “A cp signs off on arrears on for the case because cp now lives with the ncp and does not want support. We still have urg and TANFA, APFEA, and CAA1A subaccts. The concern is that when money comes in and is applied to CAA1A arrears it would just go right back to the cp and thusly the ncp since they live together again. If we were to have gotten a tax payment the money would have applied to acct 40 for CAA1A arrears, however for a regular payment the cp's mpi# is still attatched and she would receive the money. Often times the urg is still greater than TANFA and the money from CAA1A could be used to reduce urg. Is there a policy for when the cp signs the arrears away to change the CAA1A subacct to acct 40 so that is not disbursed to the cp? If there is not a policy for this should this be looked at to prevent this from occurring again?”
Answer: Answer per the DCS Director’s Office: “I don't think the policy specifically addresses case closure because the parents now live together. However, the policy for case closure in general is that we are to continue the enforcement and collection of conditionally assigned arrears. Look at the general procedures for the Void Notice. These arrears are conditionally assigned and the distribution payments, federal tax offset to the Cabinet and all other payments to the family, is in the federal law.
Some have suggested moving the CAA to TANFA. However, this would be incorrect because these arrears aren't permanently assigned, and the state would retain all payment types.
So, when a cp requests case closure, we should be advising him or her that the Cabinet will continue to enforce and collect the CAA, and other than federal tax offset, any payment that applies to these arrears will be sent to him or her. Although the parties are living together, these arrears are owed. I realize it is a little strange to enforce payments from the ncp just to send it back to the household in which he or she lives. But, as I read the law, this is the requirement. Also, several bills with changes in the child support distribution are before Congress, so this may change in the near future.”