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September 2016

PRWORA Distribution

Alternate Payment Method

When to Contact CSE Finance

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Personal Responsibility and Work Opportunity Reconciliation Act of 1996

“Family First Distribution” – in most cases family is paid before the state

Incoming money is prorated across all obligor’s court case judgments – obligor can not choose to which order money can be applied

Distribution is determined at the dependent level rather than the judgment level

Money is first allocated to Monthly Support Obligation for each judgment, if money remains, collections can be allocated among remaining “buckets”

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Never Assigned (NA) – Due to

the family

Unassigned Pre-Assistance (UP) –

Due to the family

Conditionally Assigned (CA) –

Due to the family, except when

the payment is collected through

federal tax refund offset (IRS

payment source)

Permanently Assigned (PA) –

Due to the state

Temporarily Assigned (TA) – No

longer accrues arrears during

assignment, but may remain a

bucket on older cases

Unassigned During (UD) – Due to

the family

1) Total all like judgments within the hierarchy

2) One judgment amount

Total of all judgments = percent allocated to that judgment

3) Total collection amount or Total of like judgment (which is less)

X percent allocated to that judgment

= $$ amount allocated to that judgment

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A $200.00 payment was received from Mr. Brown.

Mr. Brown has two child support judgments:

Judgment 1 (CS1) = $100.00

Judgment 2 (CS2) = $150.00

$100.00 (CS1)

+ $150.00 (CS2)

$250.00 Total of all like judgments

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$100.00 (CS1 amount)

$250.00 (total from step #1) = .40000

$150.00 (CS2 amount)

$250.00 (total from step #1) = .60000

$200.00 (total collection) X .40000 (from step 2)

= $80.00 (will be allocated to Judgment 1)

$200.00 (total collection) X .60000 (from step 2)

= $120.00 (will be allocated to Judgment 2)

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Purge/Targeted Orders

Court orders with special allocation instructions

Federal Income Tax Offsets

Interstate Case Project

Purge orders and Targeted orders must be flagged in CHARTS for special handling.

Be sure information is submitted timely to CSE Finance in order to avoid errors in allocation/distribution.

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Court orders with special allocation instructions must be flagged in CHARTS for special handling.

Be sure information is submitted timely to CSE Finance to avoid errors in allocation/distribution.

466 NAC 11-002.04 Federal Income Tax Offset Distribution: Any amounts collected through the federal income tax offset represent an arrears collection, and must be applied to state debt first. Any amount above the state debt owed must be distributed to the court-ordered payee for arrearages owed. Collections in excess of arrearages owed must be returned to the obligor whose federal income tax refund was offset. See 466 NAC 9-014.

Federal Income Tax Offsets must be applied to state debt first, excess over arrearages owed must be refunded to the payor.

Processing refunds to payor: Address verification is

required.

Joint returns are held pending verification of joint filer name.

Automated letter from CHARTS is sent to the payorrequesting he/she call CSE Finance to verify information prior to release of the refund.

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Goal to eliminate discrepancies between states when NCP has multiple orders.

Utilized when other state is enforcing their own order and sending money to Nebraska for disbursement.

Nebraska Revised Statues Section 43-1718.01(3)

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(3) In any case in which services are provided under Title IV-D of the federal Social Security Act, as amended, and a support order has been issued or modified on or after September 6, 1991, the noncustodial parent may pay his or her support through monthly automatic financial institution withdrawal through the State Disbursement Unit if the following conditions are met:

(a) The noncustodial parent, the custodial parent, and the department sign a written, notarized agreement;

(b) The noncustodial parent is current and not in arrears on his or her support payments at the time of the written, notarized agreement;

(c) The amount automatically withdrawn from the noncustodial parent's financial institution is at least the amount of the court-ordered monthly support obligation; and

(d) The automatic financial institution withdrawal occurs on a regular, consistent basis each month.

Any partial payment or missed payment shall subject the noncustodial parent to mandatory income withholding as provided in the court order.

Referral from Call Center or CSE

Worker to CSE Finance for

consideration.

CSE Finance explains process to

requestor and initiates approval

inquiries if meets qualifications.

Letter(s) to all non-requesting parties for notarized approval. Once returned:

Letter(s) to requestor for notarized approval. Once returned:

Approval by department with notification to requestor.

Additional automation expected with March 2017 CHARTS release.

We’re here to help!

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Payouts in error can

usually be stopped

before 10:30 AM.

Contact CSE Finance

immediately to provide

reason for cancellation

and to determine if

possible to stop payout.

CSE Finance works with

NCSPC to request

cancellation of payout.

Requests to hold

payments are classified

into four categories,

detailed in 03/14/07

memo.

Payment holds are

temporary and CSE

Finance should be

notified when situation is

resolved so payment can

be released.

Orders to Hold

Payments

CA/AA went to

Court, but waiting for

a Court’s Decision

Interstate Case with

Special

Circumstances

All Other Situations

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PRWORA

Distribution

Alternate

Payment

Method

When to Contact

CSE Finance

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