Western Interstate Child Support Enforcement Council Annual Training Conference

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Valentine Boone
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Nelson Assistant General Counsel Director, Garnishment Operations

1 Western Interstate Child Support Enforcement Council Annual Training Conference Defense Finance and Accounting Service Neal W. Nelson Assistant General Counsel Director, Garnishment Operations October 3, 2012 Integrity - Service - Innovation Integrity - Service - Innovation

2 DFAS Garnishment Operations Responsibilities Workload Systems New Initiatives Child Support Locate and Enforcement Issues Servicemembers Civil Relief Act Various Garnishment Issues 9/27/2012 Integrity - Service - Innovation 2

3 Responsibilities All Child Support/Alimony Garnishments for All Civilian Employees and Military members Paid by DFAS DoD, DOE, DHHS, EPA, BBG, DVA USFSPA Applications for Court-Ordered Divisions of Military Retired Pay Commercial Garnishments Civilian Employees Military Commercial Debt Involuntary Allotments Chapter 13 and Chapter 7 Personal Bankruptcies 9/27/2012 Integrity - Service - Innovation 3

4 Staff Composition Assistant General Counsel, Director Neal Nelson Deputy Assistant General Counsel, Deputy Director Scott Lafferty Four Team Attorneys Four Multi-disciplined Teams 52 Employees Four Supervisory Paralegals a Twelve Paralegals Per Team Five Support Staff: Executive Assistant Systems Analyst (IGS), State t Child Support Liaison i Systems Analyst (IGARN), Telework Coordinator Legal Assistant Secretary Document Control Center 9 Employees Supervisory Mail Equipment Operator Eight Mail Equipment Operators 9/27/2012 Integrity - Service - Innovation 4

5 Workload Court Ordered Actions Processed: FY 2006: 324, FY 2007: 342,734 FY 2008: 353,807 FY 2009: 409, % Increase FY ,940 FY ,146 FY ,001 Thru 9/1/12 Average Monthly Pay Out: $ Million 9/27/2012 Integrity - Service - Innovation 5

6 Workload by Case Type Alimony/Child Support: 67.79% USFSPA: 13.08% Commercial Debt: 15.62% Military: 3.24% Civilian: 12.38% Bankruptcy: 3.51% 9/27/2012 Integrity - Service - Innovation 6

7 Garnishment Systems Payroll Locator File System (PLFS) PLFS contains DoD Civilians, Military Active Duty, Reserves and Retirees Also contains information for employees of other agencies that DFAS pays: Currently DOE, DHHS, EPA, BBG and DVA Employees Utilized throughout DFAS Electronic Document Management System (IGARN) Workflow Management & Imaging System All Documents Received by Mail are Imaged Interfaces with PLFS & IGS Fax Gateway Electronically routes Documents to IGARN 9/27/2012 Integrity - Service - Innovation 7

8 Garnishment Systems (Continued) Integrated Garnishment System (IGS) Facilitates automated processing of garnishments Paralegal is solely responsible for implementing the garnishment Completely eliminates hand-offs and re-entry of data Eliminates errors and re-work Assists paralegals with the validation of legal documents through legal review functionality Automates the creation of a variety of notification letters The single interface between IGARN, PLFS and Payroll Systems All DFAS pay systems except DJMS-RC are interfaced Interfaces provide status updates for both the affected employee and the garnishment transaction IGS creates notifications based on feedback from the pay system IGS utilizes Smart Docs to send electronic notification of garnishments Decreases receipt time Reduces costs: postage, paper, man hours 9/27/2012 Integrity - Service - Innovation 8

9 Electronic Commerce Initiatives Kids 1st DFAS Kids 1 st Program Child Support Enforcement Agencies Send Orders Directly to DFAS over secure network - First of its kind in the country!! Kids 1 st file layout served as the model for the electronic Income Withholding Order (eiwo) program Developed in coordination with DFAS, Federal Office of Child Support Enforcement (OCSE) and the states We currently have 31 states using EC to send child support orders to DFAS Projecting Florida - Fall 12 FY 10 and FY 11 Production Over 100,000 electronic orders received - FY 12 is on target to exceed FY 11 9/27/2012 Integrity - Service - Innovation 9

10 Kids 1 st - eiwo Five states use the Web Based process; Georgia - Hawaii New Mexico Utah - Wisconsin One state uses the Batch Process; Iowa Twenty-five states in Production with eiwo; Arizona - California Colorado Idaho - Illinois - Indiana Massachusetts Michigan Missouri -Nebraska New Jersey - New York - North Carolina North Dakota Ohio - Oklahoma Oregon Pennsylvania South Dakota -Tennessee - Texas Virginia Washington Washington D.C. - West Virginia Seven states in Development/Testing Projected Implementation FY 13 Alabama, Arkansas, Connecticut, Delaware, Florida, Hawaii, Wisconsin 9/27/2012 Integrity - Service - Innovation 10

11 Electronic Bankruptcy Court Interface ebci Implemented February 2010 We are now receiving bankruptcy documents electronically by batch file FY documents received Benefits Decreases time to receive bankruptcy documents Eliminates need to process hard copy documents received by mail Eliminates manual workload to look up missing SSN s Decreases the probability of violation of the automatic stay by giving us the opportunity to stop garnishments & debt collections Automates the re-routing process of no-match SSN documents to Debt and Claims Management 9/27/2012 Integrity - Service - Innovation 11

12 Organization: Garnishment Notable Awards 1997 Hammer Award from Vice President Al Gore 1999 ASMC Team Achievement Award for Meritorious Performance in Electronic Data Management 2000 Valued Partner Award from the Federal Office of Child Support Enforcement Commissioner 2001 DoD Electronic Commerce Pioneer Finalist Award from the DoD Joint Electronic Commerce Program Office 2001 Employer of the Year in Recognition of Helping Children through the Kids 1 st Program from the State of Oklahoma 9/27/2012 Integrity - Service - Innovation 12

13 Garnishment Notable Awards, (Cont d) 2004 DoD Applied Innovation Medallion Award for the Interface of IGS with MyPay 2004 Eastern Regional Interstate Child Support Association Recognition Award to Garnishment Operations for recognition of its efforts in electronic child support initiatives 2004 Administration for Children & Families Office of Child Support Enforcement Commissioners Award for Achievement Beyond the Call of Duty 2006 National Child Support Enforcement Association Award for the Outstanding Employer of the Year (Letter of Recognition from DoD Comptroller) 9/27/2012 Integrity - Service - Innovation 13

14 DoD Policy Parents Are To Be Fiscally Responsible For Their Children 9/27/2012 Integrity - Service - Innovation 14

15 Service Regulations Army - AR Air Force - AFI Navy - SECNAVINST Marine Corps - Marine Corps Order P (LEGADMIN) Chapter 15 Coast Guard - PERSMAN Chapter 8M 9/27/2012 Integrity - Service - Innovation 15

16 Locate Issues and VOE S Employment information contained in the Quarterly Wage & New Hire Reports these include all pays the member received for the quarter. Federal Parent Locator Service: AkS Ask State Child Support Office for DoD DExternal llocate Requests sent from the state to DMDC Active duty/unit duty address Reserves unit/duty address Retired home address Contact your state technical support liaison listed on ACF website under new hire contacts t Use of subpoena is cumbersome for states & puts heavy burden on DFAS. 9/27/2012 Integrity - Service - Innovation 16

17 Military Locator Army Active Duty: Army Worldwide Locator 8899 E. 56th Streett Indianapolis, IN Permanently disabled! Navy: Navy Personnel Command (PERS 312) 5720 Integrity Drive Millington, TN (901) fax (901) Army Reserve: Commander ARPERCEN 9700 Page Blvd St. Louis, MO (314) Air Force: HQ/AFPC/DPDXIDL 550 C. St. West, Suite 50 Randolph AFB, TX (210) (210)

18 Military Locator (Cont d) Marine Corps: Coast Guard: HQMC MMSB -17 Commander 2008 Elliot Road, Room 203 US Coast Guard - PSC Quantico, VA Wilson Blvd, Suite 1100 (703) Arlington, VA mil (202) fax (202) Mr. Maldonado Marvin.I.Maldonado@uscg.mil Maldonado@uscg

19 Service of Process Jurisdictional Issue Personal Service Service Overseas 9/27/2012 Integrity - Service - Innovation 19

20 Facilitating Service of Process Army: Navy: Office of the Judge Advocate General Attn: DAJA-LA Air Force: 2200 Army Pentagon Washington, D.C AFLSA/JACA (703) Air Force Pentagon Washington, D.C (703) Office of the Judge Advocate General (Code 16) 1322 Patterson Avenue, SE Suite 3000 Washington Navy Yard, D.C (202) /27/2012 Integrity - Service - Innovation 20

21 Facilitating Service of Process Marine Corps: Paralegal Specialist Headquarters, US Marine Corps (JAR) 2 Navy Annex Quantico, VA (703) Coast Guard: United States Coast Guard G-PC (USCG) Room 4100E, CGHQ Department of Transportation Washington, D.C (202)

22 Voluntary Acknowledgement of Paternity Previous DoD policy - Out of wedlock children were dependents for health care benefits Judicial determination of paternity Dependent upon member for more than 50 percent of his or her support January 28, New policy expands and creates a third category: a voluntary acknowledgement of paternity Policy is to facilitate entitlements to military benefits provided to children of Uniformed Service Members 9/27/2012 Integrity - Service - Innovation 22

23 Resources Support Enforcement Working with the Military as an Employer A Quick Guide ide.pdf Working with the Military on Child Support Matters: Trainer Guide

24 Servicemembers Civil Relief Act (SCRA) 9/27/2012 Integrity - Service - Innovation 24

25 Time for a Change Congress has long recognized that the men and women of our military services should have civil legal protections so they can "devote their entire energy to the defense needs of the Nation." With hundreds of thousands of servicemembers fighting in the war on terrorism and the war in Iraq, many of them mobilized from the reserve components, the Committee believes the Soldiers' and Sailors' Civil Relief Act (SSCRA) should be restated and strengthened to ensure that its protections meet their needs in the 21st century. House Committee on Veterans Affairs Report 108 H. Rpt. 81 9/27/2012 Integrity - Service - Innovation 25

26 Servicemembers Civil Relief Act (SCRA) Purposes of the SCRA: (1) to provide for, strengthen, and expedite the national defense through protection extended by this Act to service members of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and (2) to provide for the temporary suspension of judicial i and administrative proceedings and transactions that may adversely affect the civil rights of service members during their military service. 9/27/2012 Integrity - Service - Innovation 26

27 New Improved SCRA On 19 December 2003, President Bush signed the SCRA, a complete revision of the SSCRA. The SCRA was written to: Clarify the language of the SSCRA Incorporate and codify many years of judicial interpretation of the SSCRA Update the SSCRA to reflect developments in American life since /27/2012 Integrity - Service - Innovation 27

28 ORGANIZATION Found at 50 USC App (cites herein are to 50 U.S.C. App. ) Title I - General Provisions i Title II - General Relief Default judgments and stays , 522, 524, 525 Fines & Penalties in contracts Statutes of Limitation Maximum rate of interest t Title III ( ) Major substantive protections against evictions, termination of installment contracts, foreclosure on mortgages, and termination of leases by lessees, protection to dependents 9/27/2012 Integrity - Service - Innovation 28

29 ORGANIZATION (cont.) Title IV - Life Insurance ( ) Title V - Taxes and Public Lands Residence for tax purposes p Title VI - Administrative Remedies Title VII - Further Relief 9/27/2012 Integrity - Service - Innovation 29

30 Scope of the SCRA Who is Covered: Active Military Army, Navy, Air Force, Marine Corps, Coast Guard Reservists called to active duty National Guard in Title 10 status or Title 32 status if called to active duty for more than 30 days for purposes of responding to a national emergency declared by the President and supported by federal funds Not applicable to: Retirees Civilian Employees DoD Contractors Dependents* *Certain protections may apply to contractual obligations of dependents (e.g., leases terminations) 9/27/2012 Integrity - Service - Innovation 30

31 Proceedings/Orders Covered by SCRA Judicial Proceedings Administrative proceedings (as of Dec. 2003) Entry of interim orders (as of Dec. 2004) Entry of final orders The SCRA has very limited effect on the enforcement of withholding orders (garnishments) 9/27/2012 Integrity - Service - Innovation 31

32 Automatic Stays As a general rule, the court must grant an initial stay of proceeding for no less than 90 days if properly requested by the Service member (plaintiff or defendant). Rationale: With delayed mail delivery and diminished opportunities to consult with legal counsel so common to military service, a period of time is needed to allow an adequate opportunity for servicemembers to consult with military or civilian counsel, and to respond to the courts. 9/27/2012 Integrity - Service - Innovation 32

33 Member Requests for Stay of Proceedings Two-fold request: Communication from the service member: Setting forth facts in which h current military duty requirements materially affect his/her ability to appear Stating a date when the Service member will be available to appear Letter from the Service member s commanding officer affirming the following: Service member's military duty prevents an appearance Military leave is not authorized for the Service member at the time of the letter If this letter contains the Service member s available court dates, the court may deem the letter sufficient to pass the two-fold test. 9/27/2012 Integrity - Service - Innovation 33

34 Effect of Request for Stay on Member s Rights Application for a stay under 522 does not constitute an appearance for jurisdictional purposes and does not constitute a waiver of any substantive or procedural defense (including a defense relating to lack of personal jurisdiction). 9/27/2012 Integrity - Service - Innovation 34

35 DOD Instruction Leave & Liberty Mandates that service member s commander grant leave for paternity and support hearings. Exceptions: Service member is deployed in a war Exigencies of military service require denial of such a request 9/27/2012 Integrity - Service - Innovation 35

36 Subsequent Requests for Stay Court has the discretion to grant or deny the stay If the court denies the stay, it must appoint an attorney to represent the service member 9/27/2012 Integrity - Service - Innovation 36

37 SCRA and Default Judgments When a defendant does not appear in court or respond to court summons, the SCRA requires a sworn affidavit by the plaintiff stating ti either: Whether or not the defendant is in military service and showing necessary facts to support the affidavit The plaintiff is unable to determine whether or not the defendant d is in military service. Consequences of failing to file an affidavit it A non-service member defendant has no remedy. If the defendant is a service member, then the order can be voided and is subject to attack upon a showing that the service member: is materially affected by reason of military service in making a defense to the action has a meritorious i or legal l defense to all or part of the action. 9/27/2012 Integrity - Service - Innovation 37

38 SCRA and Default Judgments If defendant is not in the military, the plaintiff may proceed to final judgment. If defendant is in the military, the court is required to appoint an attorney for the defendant. 9/27/2012 Integrity - Service - Innovation 38

39 Appointed Counsel When defendant is a service member, the court must appoint an attorney prior to granting a default judgment Duties of appointed attorney protects Service member s rights determines status and seeks stay Can t waive rights or bind service member 9/27/2012 Integrity - Service - Innovation 39

40 SCRA and Default Judgments SCRA default guidance applies to all of the following: Final Judgments Interim Orders (New) Court Orders Administrative Support Orders but not to administrative enforcement remedies, such as liens, wage withholdings, etc. 9/27/2012 Integrity - Service - Innovation 40

41 Certificate of Military Status Defense Manpower Data Center (DMDC) Provide Certificate as to military service on the Internet t acceptable documentation ti to show whether he/she is in the military 9/27/2012 Integrity - Service - Innovation 41

42 DMDC Certificate of Military Status If the Service member is on active duty, this is what you ll see: 9/27/2012 Integrity - Service - Innovation 42

43 DMDC Certificate of Non-Military Status If the Service member is NOT on active duty, this is what you ll see: 9/27/2012 Integrity - Service - Innovation 43

44 Reopening a Default Judgment Service member can request court to re-open judgment any time during Service member s period of military service Service member or their attorney can also file an application to re-open within 90 days of the end of military service 9/27/2012 Integrity - Service - Innovation 44

45 6% Rate Cap SCRA rule on interest New law clarifies that interest above 6% must be forgiven (some creditors were deferring interest) Applies to child/spousal support arrearages Applies to only those arrearages incurred prior to induction to active duty Material affect analysis applies Under SCRA, Service member must request the cap and produce orders

46 FEIN for Military & Civilian Employees Army (Active Duty) Army (Reserve Duty) Air Force (Active Duty) Air Force (Reserve Duty) Navy (Active Duty) Navy (Reserve Duty) Marine Corp (Active & Reserve) Retired Pay DoD Civilian Employees DoE Civilian Employees HHS Civilian Employees EPA Civilian Employees BBG Civilian Employees Department t of Veterans Affairs /27/2012 Integrity - Service - Innovation 46

47 Military Pay Resources DoD Pay Tables and How to Read a Leave and Earnings Statement (LES) Basic Allowance for Housing (BAH) (Contains BAH tables & zip code feature to search)

48 Figuring Support Obligations States will establish support amount in accordance with their State s guidelines: Most States use all income to compute the amount Includes both taxable and non taxable income Includes pay and allowances Military Base Pay by Rank and Time in Service Special Pays Allowances: BAH (Basic Allowance for Housing) Amount increases with Rank BAS (Basic Allowance for Subsistence) 9/27/2012 Integrity - Service - Innovation 48

49 What is Disposable Pay? IT DEPENDS! The type of garnishment action determines how Disposable Pay is calculated Generally: Gross Pay Minus Authorized Deductions For Child Support Cases: Includes All Pay Items Base Pay and Special Pays Bonuses Included However Excludes Allowances like BAH, BAS, Taxes But Normal retirement deductions TSP See 5 C.F.R /27/2012 Integrity - Service - Innovation 49

50 Military Pay The quarterly wage report provided to NDNH includes all income received by a military person. Special Skills Pays Flight pay Hazardous duty py pay Career Sea pay Submarine duty pay Jump pay Many others Bonuses Lump sum (usually for Re enlisting) enlisting) A detailed list of those pays can be found in the DFAS Quick Guide. (See DFAS web site under child support agencies information). 9/27/2012 Integrity - Service - Innovation 50

51 Pay Office Addresses Obtain Service Members Payroll Information from the Appropriate Military Finance Center Air Force Active Duty, Air Force Reserves & National Guard DFAS Indianapolis Attn: DFAS IN GA 8899 East 56th Street Indianapolis, IN Army Active Duty, Army Reserves & Army National Guard DFAS Indianapolis Attn: DFAS IN FJEF 8899 East 56th Street Indianapolis, IN Navy Active Duty, Navy Reserves DFAS Cleveland Attn: DFAS CL GAF 1240 E. 9hS 9th Street Cleveland, OH Marine Corps Active Duty DFAS Cleveland Attn: DFAS CL FCRAF 1240 E. 9th Street Cleveland, OH Marine Corps Reserve Duty DFAS Cleveland Attn: DFAS CL FPPR 1240 East 9th Street Cleveland, OH /27/2012 Integrity - Service - Innovation 51

52 Methods for Collecting Child Support Three Methods for Collecting Child Support Income Withholding Order This order is separate from the order establishing the obligation and may be issued by a court or administrative body Statutory Involuntary Allotment Must be initiated by authorized official Uniformed Services Former Spouses Protection Act No withholding language necessary. Former Spouse submits divorce decree or other order that establishes obligation 9/27/2012 Integrity - Service - Innovation 52

53 Legal Authority The laws and regulations we use: Child Support/Alimony Statutory Involuntary Allotments - 42 USC 665, 32 CFR 54 Proposed legislation to repeal Garnishments - 42 USC 659, 5 CFR 581 Commercial Debt - Civilian/Military Civilian - 5 USC 5520a, 5 CFR 582 Military - 5 USC 5520a, 32 CFR 112, 113 Uniformed Services Former Spouses Protection Act 10 USC 1408, DoDFMR Vol 7B, Chap 29 Consumer Credit Protection Act - 15 USC 1673 Servicemembers Civil Relief Act - 50 USC App. 501 Et seq. 9/27/2012 Integrity - Service - Innovation 53

54 Child Support Use Income Withholding Orders (IWO) under 42 U.S.C. 659 or statutory allotment under 42 U.S.C. 665 IWO quicker to Implement IWO can also be sent electronically through Kids 1 st eiwo Allocation - When we receive a second or subsequent order and the member s disposable pay is insufficient to pay all ordered amounts, we must allocate payments between the orders. 9/27/2012 Integrity - Service - Innovation 54

55 Uniformed Services Former Spouses Protection Act (USFSPA) Allows Applicant to Apply for Payment of: Division of Retired Pay as Property Current Child Support Child Support Arrears Current Alimony Maximum Payment: 50% of Disposable Pay If Combined with Garnishment Order - 65% Maximum

56 Contact Information Send garnishment orders to: DFAS HGA CL P O Box Cleveland, l OH Customer Service: Fax Gateway: Website: (click on the Garnishment link underthe QuickLinks Section) 9/27/2012 Integrity - Service - Innovation 56

57 Helpful Website Links DFAS Pay Tables Explanation of LES BAH Calculator My Pay Combat Zone - IRS Impact Combat Zones around the world RAPIDS Locator MAIL USPS Domestic Manual International Mail Manual Military Mail Address APO/FPO Military Postal Service Agency LOCATE Military Installation Guide Find a buddy Together we served Navy Ship Addresses Marine Unit Locations mil/marinelink/websites nsf/unitslocation Army Installations SCRA Hague Convention Service of Process Convention Evidence Convention US State Department-service of pro US State Department-child support

58 Questions? 9/27/2012 Integrity - Service - Innovation 58

WORKING WITH THE MILITARY: LEGAL CHALLENGES AND SOLUTIONS (CLE)

Tuesday: Breakout Session 5 Workshop A Time: 2:45 p.m. - 4:00 p.m. Location: Regency 1 WORKING WITH THE MILITARY: LEGAL CHALLENGES AND SOLUTIONS (CLE) Straight from the Horse s mouth! Come to this session