[Code of Federal Regulations]
[Title 45, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR305.2]

[Page 273-275]
 
                        TITLE 45--PUBLIC WELFARE
 
    CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT 
 
PART 305_PROGRAM PERFORMANCE MEASURES, STANDARDS, FINANCIAL INCENTIVES, 
AND PENALTIES--Table of Contents
 
Sec. 305.2  Performance measures.

    (a) The child support incentive system measures State performance 
levels in five program areas:
    Paternity establishment; support order establishment; current 
collections; arrearage collections; and cost-effectiveness. The penalty 
system measures State performance in three of these areas: Paternity 
establishment; establishment of support orders; and current collections.
    (1) Paternity Establishment Performance Level. States have the 
choice of being evaluated on one of the following two measures for their 
paternity establishment percentage (commonly known as the PEP). The 
count of children shall not include any child who is a dependent by 
reason of the death of a parent (unless paternity is established for 
that child). It shall also not include

[[Page 274]]

any child whose parent is found to have good cause for refusing to 
cooperate with the State agency in establishing paternity, or for whom 
the State agency determines it is against the best interest of the child 
to pursue paternity issues.
    (i) IV-D Paternity Establishment Percentage means the ratio that the 
total number of children in the IV-D caseload in the fiscal year (or, at 
the option of the State, as of the end of the fiscal year) who have been 
born out-of-wedlock and for whom paternity has been established or 
acknowledged, bears to the total number of children in the IV-D caseload 
as of the end of the preceding fiscal year who were born out-of-wedlock. 
The equation to compute the measure is as follows (expressed as a 
percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.045

    (ii) Statewide Paternity Establishment Percentage means the ratio 
that the total number of minor children who have been born out-of-
wedlock and for whom paternity has been established or acknowledged 
during the fiscal year, bears to the total number of children born out-
of-wedlock during the preceding fiscal year. The equation to compute the 
measure is as follows (expressed as a percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.046

    (2) Support Order Establishment Performance Level. This measure 
requires a determination of whether or not there is a support order for 
each case. These support orders include all types of legally enforceable 
orders, such as court, default, and administrative. Since the measure is 
a case count at a point-in-time, modifications to an order do not affect 
the count. The equation to compute the measure is as follows (expressed 
as a percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.047

    (3) Current Collections Performance Level. Current support is money 
applied to current support obligations and does not include payment 
plans for payment towards arrears. If included, voluntary collections 
must be included in both the numerator and the denominator. This measure 
is computed monthly and the total of all months is reported at the end 
of the year. The equation to compute the measure is as follows 
(expressed as a percent):

[[Page 275]]

[GRAPHIC] [TIFF OMITTED] TR27DE00.048

    (4) Arrearage Collection Performance Level. This measure includes 
those cases where all of the past-due support was disbursed to the 
family, or retained by the State because all the support was assigned to 
the State. If some of the past-due support was assigned to the State and 
some was to be disbursed to the family, only those cases where some of 
the support actually went to the family can be included. The equation to 
compute the measure is as follows (expressed as a percent):
[GRAPHIC] [TIFF OMITTED] TR27DE00.049

    (5) Cost-Effectiveness Performance Level. Interstate incoming and 
outgoing distributed collections will be included for both the 
initiating and the responding State in this measure. The equation to 
compute this measure is as follows (expressed as a ratio):
[GRAPHIC] [TIFF OMITTED] TR27DE00.050

    (b) For incentive purposes, the measures will be weighted in the 
following manner. Each State will earn five scores based on performance 
on each of the five measures. Each of the first three measures 
(paternity establishment, order establishment, and current collections) 
earn 100 percent of the collections base as defined in Sec. 305.31(e) 
of this part. The last two measures (collections on arrears and cost-
effectiveness) earn a maximum of 75 percent of the collections base as 
defined in Sec. 305.31(e) of this part.