up with children – down by the boardwalk 1 48 th annual training conference & exposition...

Up with Children – Down by the Boardwalk

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48th 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

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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

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• 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

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• 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

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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

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State Performance Measures

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• Percent of current collections

• Percentage of arrearage cases

• Cost effectiveness ratio

• Paternity establishment percentage• Percent of cases with orders

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FPLS – Locate Information

NDNHNDNH

EmploymentInformation

FCRFCR

CSE Agencies

• 48M New Hire Records• 601M Quarterly Wage Records• 57M Unemployment Insurance

Records– 28% increase from FY2009

• 19.9 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)

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Child Support Collection & Enforcement

DebtorsDebtors

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

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W-4 Records Posted to the NDNH

55.6 54.7 54.859.5

61.6 62.258.7

46.9 47.7

1.8%

-20.2%

-5.6%0.9%

3.6%8.5%

0.1%-1.6%

-

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007 2008 2009 2010

Mil

lio

ns

Fiscal Year

Rec

ord

s P

ost

ed

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Qu

arte

rly

BL

S U

E R

ate

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UI Records Posted to the NDNH

33.0 33.229.9

25.0 24.3 23.025.0

44.2

56.5

28.0%

76.8%

8.8%

-5.6%-2.8%-16.4%

-9.8%0.5%

-

10

20

30

40

50

60

2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ions

Fiscal Year

Rec

ords

Pos

ted

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Qua

rter

ly B

LS U

E R

ate

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Monthly BLS Unemployment

9.6%9.5%9.7%9.7%9.7%10.0%9.8%

9.4%9.4%

8.6%

7.7%

6.8%

6.2%5.8%

5.5%5.1%

4.9%

8.8%9.0%

9.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Mth.Yr

Un

emp

loym

ent

Rat

e

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Unemployment Rates by State March 2011

National 8.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

State

Un

em

plo

ym

en

t R

ate

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Annual Distributed IV-D Child Support Collections 1976-2010

-5

1015202530

Billio

ns

Fiscal year

Annu

al C

olle

ctio

ns

Annual Collections

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Collections Trends

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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

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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

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PEP

Children with paternity established Children with paternity established ________________________________________________________________________

Children born out of wedlockChildren born out of wedlock

Statewide or IV-D

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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

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Order Establishment

IV-D cases with ordersIV-D cases with orders________________________________________________________________________

IV-D casesIV-D cases

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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

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Order Establishment

Decrease IV-D cases

• SSA death information

• Interstate Case Reconciliation (ICR)

• FCR case closed response

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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.

15.8 15.8 15.7 15.8 15.9

77% 78% 79% 79% 80%

0

4

8

12

16

20

2006 2007 2008 2009 2010

Fiscal Year

IV-D

Cas

es

(Mil

lio

ns)

0%

20%

40%

60%

80%

100%

Number of IV-D Cases % of Cases With Orders Established

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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 2010.

• 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.

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Collection Rate

Current support collectedCurrent support collected____________________________________________________________________________________

Current support dueCurrent support due

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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

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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

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Current Support Collections

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

$30.8 $31.4 $32.2 $32.6

$18.1 $18.8 $19.4 $19.9 $20.2

$29.9

$0

$5

$10

$15

$20

$25

$30

$35

FY2006 FY2007 FY2008 FY2009 FY2010

Co

llec

tio

ns

(B

illio

ns

)

Current Support Due Current Support Collected

60.4% 61.2% 61.9% 61.8% 62.0%

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Collections from Garnishment of SSA Benefits

Total FY2010 Collections: $702 million

Average collection per IWO = $177/month

FY2010 Monthly Garnishments for Child Support - Reported by SSA

$30.0

$35.0

$40.0

$45.0

$50.0

$55.0

$60.0

$65.0

$70.0

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Nati

on

al M

on

thly

Garn

ish

men

t A

mo

un

t (m

illio

ns)

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Arrears Collections

Cases with arrears collectionsCases with arrears collections________________________________________________________________________________________________

Cases with arrears owedCases with arrears owed

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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)

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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

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Cases With Arrears and Payments Toward Arrears

11.2 11.3 11.2 11.3 11.4

62.0%63.3%63.3%61.3%60.8%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

FY2006 FY2007 FY2008 FY2009 FY2010

Fiscal Year

Nu

mb

er o

f C

ases

Wit

h A

rrea

rs

Ow

ed (

Mil

lio

ns)

0%

20%

40%

60%

80%

100%

% of Cases With Payment Towards Arrears

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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).

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Collecting Arrears: Federal Offset Program

Federal Offset Yearly Comparison Net Collections

$1,988 $2,079 $2,102

$1,693$1,600$1,435 $1,584 $1,489 $1,455 $1,385

$1,584

$7

$119 $263

$863

$112

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Calendar Year

Fe

d O

ffs

et

Ne

t C

olle

cti

on

s (

Mill

ion

s)

Tax Rebates

Child Tax credits

Economic stimulus payments

Economic Recovery Payments

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New Remedies for Collecting Arrears: Insurance Match

• 484 of Insurers participating in match through ISO as of 4/26/2011

• 15 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

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Cost Effectiveness

Child support collectedChild support collected__________________________________________________________________________

Amount expendedAmount expended

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Cost Effectiveness• Increase collections• Decrease program costs

– Cost Avoidance• NCOA• DMDC• QUICK• FPLS portal

– Automation• SVES• IWO/ E-IWO• Insurance• MSFIDM

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Cost Effectiveness Trends

4.884.804.734.58 4.78

$0

$5

$10

$15

$20

$25

$30

FY2006 FY2007 FY2008 FY2009 FY2010Co

llec

tio

ns

and

Exp

end

itu

res

(Mil

lio

ns)

0

1

2

3

4

5

6

7

8

9

10

IV-D Collections Program Expenditures Cost Effectiveness Ratio

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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

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Medical Support

• Increase medical support provided– DMDC match

• TRICARE enrolled• TRICARE eligible• Former TRICARE

– NDNH W4 and QW

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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.

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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

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W-4 Study Results in 22 States

  Overall Minimum Maximum

% 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 $305.50

Estimated Annual Collections

$1.1 M $51.4 M

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State W-4 Study Data vs FY2010 Performance Data

Hit Rate (% of W-4 data resulting in a

collection)

% of Sample Resulting in

an IWO

Median Monthly

Collection

% of Cases With Orders

% of Current Support

Collected

Percent of Arrearage

Cases With a Collection

Cost Effectiveness

Ratio

State Y 23.6% 45.5% $ 271.38 82.6% 56.0% 60.3% 2.38State L 22.8% 47.2% $ 228.75 74.6% 54.7% 61.4% 4.03State X 21.9% 36.9% $ 276.92 82.8% 64.5% 61.6% 3.58State E 21.8% 48.6% $ 240.00 89.5% 65.8% 62.9% 4.43State G 21.2% 41.3% $ 297.52 83.8% 50.8% 54.1% 5.84State J 19.4% 35.3% $ 167.50 73.2% 58.5% 59.3% 3.71State F 19.1% 39.8% $ 300.00 81.9% 67.9% 60.7% 4.87State V 18.0% 37.1% $ 265.10 86.5% 56.7% 58.3% 6.71State N 15.1% 36.4% $ 300.60 76.5% 49.1% 56.8% 2.92State H 14.8% 24.0% $ 211.97 89.8% 74.2% 68.7% 5.61State T 11.8% 26.9% $ 205.99 74.7% 59.3% 59.3% 5.29State D 11.3% 22.3% $ 260.30 78.5% 56.7% 57.3% 4.69State M 9.5% 21.1% $ 284.00 88.4% 60.4% 58.0% 3.80

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W-4 Attributable Collections Hit Rate vs Child Support Collections Performance Measures

40%

50%

60%

70%

80%

0% 5% 10% 15% 20% 25% 30%

Median Monthly Collection from W-4 Attributable IWOs

Per

form

ance

Mea

sure

s (A

rrea

rs a

nd

Cu

rren

t S

up

po

rt)

Hit Rate vs. % of Arrears Cases with a Collection

Hit Rate vs % of Current Support Collected

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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

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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.

0%

20%

40%

60%

80%

100%

1 2 3 4 5 6 7 8 9 10 11 12

Month

% o

f C

oll

ecti

on

s C

on

tin

uin

g

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EA Studies – Other Findings That Impact Collections

• Policy on arrears-only orders

• Updating NCP employment history

• Gaps in automation

• Criteria for automatically sending IWOs

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State Visits – NCP Location Analysis

State L (FY2007) 22.8% 25.2% 19.6%

State V (FY2007) 18.0% 22.2% 13.7%

State X (FY2007) 21.9% 32.8% 21.8%

State J (FY2006) 19.4% 25.4% 15.0%

State D (FY2004) 21.2% 26.9% 19.5%

State H (FY2005) 14.8% 20.1% 12.4%

State (FY

Studied)

% of All NDNH W-4 Hits Resulting in Collections

% of NDNH W-4 Hits Resulting in Collections

When NCP Lives In-State

% of NDNH W-4 Hits Resulting in Collections

When NCP Lives In Another State

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Questions?

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Resources

• OCSE Websitehttp://www.acf.hhs.gov/programs/cse/

• FCR Technical Support Liaisons http://www.acf.hhs.gov/programs/cse/newhire/contacts/fcrtscontacts.htm

• FPLS Webcasthttp://videocast.nih.gov/sla/acf/

• Technical Assistance Guide, Section 7http://www.acf.hhs.gov/programs/cse/newhire/library/fcr/fcr.htm

• Working with the Military as an Employer http://www.acf.hhs.gov/programs/cse/newhire/employer/publication/publication.htm

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Questions

• Dennis Putze dennis.putze@acf.hhs.gov 202 401-4030• Linda Hudson

linda.hudson@ngc.com850.236.7488

• Jen Francis jennifer.francis@acf.hhs.gov 858 273-5963

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