TO:All IV-D Agents and StaffCSM No. 125
Child Support Enforcement Staff
FROM:Steven P. Veno
Deputy Commissioner
DATE:September 30, 2009
SUBJECT: Deficit Reduction Act of 2005 Changes in Requirement of Assignment of Rights
The Deficit Reduction Act of 2005 revises Section 408(a)(3) of the Social Security Act to eliminate the assignment of Pre-Assistance Arrearages (NAA1A) in new assistance cases. Effective, October 1, 2009, the following changes will occur in the KASES system.
When NAA1A arrearages are owed to a custodial parent and the custodial parent starts receiving assistance (K-TAP or Kinship Care) on or after October 1, 2009, the NAA1A arrearages owed to the custodial parent will not MARR to CAA1A. The NAA1A arrearage will remain in the NAA1A subaccount. The custodial parent only assigns his/her rights to the support which accrues during the period that the custodial parent is receiving assistance not to exceed the cumulativeamount of the Unreimbursed Grant (URG). The arrearage that accumulates while the custodial parent is receiving assistance will be in the TANFA subaccount. When the custodial parent stops receiving assistance, any amount above the URG will MARR from the TANFA subaccount to the UDA1A subaccount.
The NAA1A subaccount will always remain associated with the custodial parent’s MPI number, regardless of whether or not assistance is being received. The TANFA subaccount will always remain associated with account 40. The CAA1A and UDA1A subaccounts will fluctuate between account 40 and the custodial parent’s MPI number depending upon whether assistance is or is not being received.
As NAA1A arrearages will no longer MARR to CAA1A on new assistance cases, KASES will not create any new CAA1A subaccounts after October 1, 2009; however, if a calculation shows there should be a CAA1A arrearage, a CAA1A subaccount can be created manually.
DRA 2005 also established a number of new distribution options for states; however, Kentucky has elected to not adopt any of those changes at this time. Kentucky will continue with PRWORA distribution (former section 457(a)(2)(b) of the Act). There will be no change to the hierarchy on payments received, including federal tax refund offset collections. See CSM No. 74.
Since many of the DRA 2005 changes were optional, caseworkers may find that other states have elected to pass through more money to the family, change how payments are distributed, or discontinue assignment of some or all of arrearages owed to their state. This may prompt questions from the participants or requests from other states to redistribute arrearages on KASES.
Additionally, effective October 1, 2009, RXB3 (when current support payments exceed the monthly grant amount received by the client, the state share of the difference is sent to the client)will be distributed within 48 hours of receipt; not the end of the month as previously distributed. RXB3 will
CSM No. 125
Page Two
September 30, 2009
issue without a hold and disburse when it is issued. The only time RXB3 will have a hold is if the grant did not interface correctly and came overwith a -0- amount. This change is due to 45CFR 302.32 not DRA of 2005.
See the attached Word document for additional explanation:
Cross Reference
CSM No. 74, Payoff Hierarchy