Up with Children – Down by the Boardwalk 1 48 th Annual Training Conference & Exposition Atlantic City, New Jersey May 22-26, 2011 Proof is in the Performance: Improving Performance Measures Using the FPLS Presented by: Dennis Putze Linda Hudson Jen Francis Up with Children, Down by the Boardwalk

Up with Children – Down by the Boardwalk 2 The Federal Parent Locator Service Objectives Review the components of the Federal Parent Locator Service (FPLS) Examine how the FPLS can help improve performance measures

Up with Children – Down by the Boardwalk 3 Federal Case Registry (FCR) National Directory of New Hires (NDNH) External locate sources –Social Security Administration (SSA) –Internal Revenue Service (IRS) –Department of Defense (DOD) –Federal Bureau of Investigation (FBI) –Veterans’ Affairs (VA) –National Security Agency (NSA) The Federal Parent Locator Service

Up with Children – Down by the Boardwalk 4 Federal collections and enforcement – Federal Income Tax Refund Offset – Federal Administrative Offset – Passport Denial Program Defense Manpower Data Center (DMDC) Match Multistate Financial Institution Data Match (MSFIDM) Interstate Case Reconciliation (ICR) Query Interstate Cases for Kids (QUICK) Insurance match National Change Of Address (NCOA) The Federal Parent Locator Service

5 The FPLS can help Increase the paternity establishment percentage (PEP) Establish more orders Improve current support collections Collect arrears on more cases Ensure children have medical support Do more with less resources Up with Children – Down by the Boardwalk

6 State Performance Measures 6 Percent of current collections Percentage of arrearage cases Cost effectiveness ratio Paternity establishment percentage Percent of cases with orders

Up with Children – Down by the Boardwalk 7 FPLS – Locate Information NDNH Employment Information FCR CSE Agencies 48M New Hire Records 601M Quarterly Wage Records 57M Unemployment Insurance Records –28% increase from FY million Child Support Cases (16.9M IV-D cases) 46M Child Support Participants 7.7M Noncustodial Parents and Putative Fathers Located through FPLS data FY2010 Other Federal Sources (DOD, VA, SSA, FBI, IRS)

Up with Children – Down by the Boardwalk 8 Child Support Collection & Enforcement Debtors CSE Agencies CY2010 $2.1B Federal Tax & Administrative Offsets 3.7M Financial Accounts Identified per Quarter; Over 1.6M Obligors Matched $28.4M Collected through Passport Denial, 80 Passports Denied per Day $148M Seized from Financial Accounts State Dept Treasury Tax Offset Admin Offset MSFIs Insurers

Up with Children – Down by the Boardwalk 9 W-4 Records Posted to the NDNH

Up with Children – Down by the Boardwalk 10 UI Records Posted to the NDNH

Up with Children – Down by the Boardwalk 11 Monthly BLS Unemployment

Up with Children – Down by the Boardwalk 12 Unemployment Rates by State March 2011 National 8.8%

Up with Children – Down by the Boardwalk 13 Annual Distributed IV-D Child Support Collections

Up with Children – Down by the Boardwalk 14 Collections Trends

15 The FPLS provides Home address and forwarding address Employer name and address Income Assets Lump sum payment information Case Information Medical coverage Information Social Security Number (SSN) validation Up with Children – Down by the Boardwalk 15

16 Verified SSNs Ensure we locate correct person Enable matches with Federal sources Helps with in-State sources No information is returned from the FPLS when the SSN is not verified Up with Children – Down by the Boardwalk 16

17 PEP Children with paternity established Children with paternity established ____________________________________ ____________________________________ Children born out of wedlock Children born out of wedlock Statewide or IV-D Up with Children – Down by the Boardwalk 17

18 PEP Increase paternity established - addresses –NDNH W4 and UI person address –NDNH W4 and QW employer address –National Change of Address (NCOA) –Social Security Administration (SSD, SSI, Prisons, death) –Department of Defense (military members, federal retirees) –Other locate sources (VA, IRS, FBI, NSA) Decrease paternity needed - Order Indicator Up with Children – Down by the Boardwalk 18

19 Order Establishment IV-D cases with orders ____________________________________ IV-D cases Up with Children – Down by the Boardwalk 19

20 Order Establishment Increase IV-D orders Address sources Income sources –NDNH W4, QW, UI –SSA (SSD, SSI, Prisoner) –Annual Wage Record (AWR) –Other locate sources (VA, DOD, FBI, NSA) Order Indicator Up with Children – Down by the Boardwalk 20

21 Order Establishment Decrease IV-D cases SSA death information Interstate Case Reconciliation (ICR) FCR case closed response Up with Children – Down by the Boardwalk 21

Up with Children – Down by the Boardwalk 22 Trends in Order Establishment Individual States’ reported percent of cases with orders in FY2009* ranged from 57% to 92%. Only 70.4% of the IV-D cases in the FCR had an order indicator at the end of FY2010.

Up with Children – Down by the Boardwalk 23 Importance of FCR Reconciliation 18 States reported more IV-D cases on the FY2010 OCSE 157 than they had on the FCR as of September Estimated 200,000 cases “missing” from the FCR in those States. Estimated up to $6.9M missed in collections during FY2010 from NDNH W-4 data not received on these NCPs Additionally, there are over 1.2 million cases on the FCR that were not reported in States’ IV-D caseloads for FY2010.

24 Collection Rate Current support collected __________________________________________ Current support due Current support due Up with Children – Down by the Boardwalk 24

25 Collection Rate Increase IV-D collections –Income sources NDNH W4, QW, UI SSA (SSD, SSI, Prisoner) Annual Wage Record (AWR) Other locate sources (VA, DOD, FBI, NSA) –Lump sum income sources MSFIDM Passport denial Insurance SSA pending claims file Up with Children – Down by the Boardwalk 25

26 Collection Rate Decrease IV-D current support due –Review and Adjustment Incarceration (SSA) Disability (SSA) Retirement (SSA) Unemployment (UI) Death (SSA, VA, FBI) –Other case information Case closed indicator ICR Up with Children – Down by the Boardwalk 26

27 Current Support Collections In FY2010, States’ Percent of Current Support Collected ranged from 49% to 83%.

Up with Children – Down by the Boardwalk 28 Collections from Garnishment of SSA Benefits Total FY2010 Collections: $702 million Average collection per IWO = $177/month

29 Arrears Collections Cases with arrears collections ________________________________________________ Cases with arrears owed Up with Children – Down by the Boardwalk 29

30 Arrears Collections Increase cases with arrears collections –Income sources –Lump sum income sources MSFIDM Passport denial Insurance SSA pending claims file Federal Offset (tax and administrative) Up with Children – Down by the Boardwalk 30

31 Arrears Collections Decrease cases with arrears owed –Review and Adjustment/ arrears adjustment Incarceration (SSA) Disability (SSA) Retirement (SSA) Unemployment (UI) Death (SSA, VA, FBI) –Other case information Case closed indicator Up with Children – Down by the Boardwalk 31

Up with Children – Down by the Boardwalk 32 Cases With Arrears and Payments Toward Arrears

Up with Children – Down by the Boardwalk 33 Characteristics of Debtors As of March 2009, approximately 41% of NCPs with certified arrears had no reported QW or UI income in the previous year. (Only 33% of all NCPs have no reported earnings). These obligors owed 50% of the total certified arrears. The average debt of no-income obligors was $22,500 (compared to $15,500 for obligors with reported QW income).

Up with Children – Down by the Boardwalk 34 Collecting Arrears: Federal Offset Program

Up with Children – Down by the Boardwalk 35 New Remedies for Collecting Arrears: Insurance Match 484 of Insurers participating in match through ISO as of 4/26/ State Workers’ Comp Agencies and Dept. of Labor participating as of 4/26/2011 $5.7 million in collections reported by States since the beginning of the program

36 Cost Effectiveness Child support collected _____________________________________ Amount expended Up with Children – Down by the Boardwalk 36

37 Cost Effectiveness Increase collections Decrease program costs –Cost Avoidance NCOA DMDC QUICK FPLS portal –Automation SVES IWO/ E-IWO Insurance MSFIDM Up with Children – Down by the Boardwalk 37

38 Cost Effectiveness Trends

Up with Children – Down by the Boardwalk 39 Automation: Benefits of e-IWOs Over 157,000 e-IWOs sent during FY2010 States estimate $1 saved per e-IWO sent Collections from e-IWOs start approximately 2.5 weeks earlier than those from paper IWOs. Additional $141 collected per successful e-IWO (~47% of IWOs result in collections). Estimated $10.4M total increase in collections from e- IWOs (FY2010) As of 5/1/11, 22 States and 1,464 employer FEINs in production

40 Medical Support Increase medical support provided –DMDC match TRICARE enrolled TRICARE eligible Former TRICARE –NDNH W4 and QW Up with Children – Down by the Boardwalk 40

Up with Children – Down by the Boardwalk 41 Improving Medical Support: DMDC Match Quarterly matches of FCR children and related adults against military health insurance data. Over 316,000 children currently enrolled in DEERS health insurance as of April 2011 An additional 103,000 are eligible for benefits Number of enrolled children have increased from 279,000 to over 316,000 since the beginning of the program.

Up with Children – Down by the Boardwalk 42 Quantifying Benefits of NDNH Data – Economic Analysis State Visits Purpose: Quantify collections attributable to NDNH W-4 data and identify barriers to successfully using W-4 data to achieve collections Studies conducted in 22 States on W-4 data received from FY2000-FY2009

Up with Children – Down by the Boardwalk 43 W-4 Study Results in 22 States OverallMinimumMaximum % of Sample resulting in an IWO 34.7%13.7%49.7% % of Sample resulting in at least one collection 16.2%6.6%23.7% % of IWOs resulting in at least one collection 47.8%24.7%61.7% Median Monthly Collection$243.70$160.41$ Estimated Annual Collections $1.1 M $51.4 M

Up with Children – Down by the Boardwalk 44 State W-4 Study Data vs FY2010 Performance Data

Up with Children – Down by the Boardwalk 45

Up with Children – Down by the Boardwalk 46 Projecting Results Nationally In FY2009, 4.0 million W-4 matches were returned to States for FCR case participants, representing 1.8 million unique NCP and PFs 1.8 million of these matches were eligible for the study samples Estimated $428 million collected in FY2010 from NDNH W-4 data

Up with Children – Down by the Boardwalk 47 EA Studies – Survival Rates of Collections from IWOs After 4 months, less than half of IWOs from W-4 data continue to produce collections. In month 12, approximately 21% of IWOs are still collecting money.

Up with Children – Down by the Boardwalk 48 EA Studies – Other Findings That Impact Collections Policy on arrears-only orders Updating NCP employment history Gaps in automation Criteria for automatically sending IWOs

Up with Children – Down by the Boardwalk 49 State Visits – NCP Location Analysis

Up with Children – Down by the Boardwalk 50 Questions?

51 Resources OCSE Website FCR Technical Support Liaisons FPLS Webcast Technical Assistance Guide, Section Working with the Military as an Employer Up with Children – Down by the Boardwalk 51

52 Questions Dennis Putze Linda Hudson Jen Francis Up with Children – Down by the Boardwalk 52