PAYMENT PROCESS

CS 590P Retained Support

12/84 Revised 09/02/26 Training Completed 09/16/25 Last Reviewed 10/01/25

Utah Code 26B-9-111, 26B-9-212, 213, 35A-3-108, 78B-2-104, 78B-2-305; R527-40

 

 

Introduction Statutory Authority

 

When a custodial parent (CP) receives IV-A cash assistance from the state of Utah or a child is placed in state custody, the child support rights are assigned to the state of Utah to help offset the costs of these programs.  If the noncustodial parent (NCP) makes payment(s) to the CP (or a former CP for state custody situations) during these time periods, s/he has “retained support” that legally belongs to the state of Utah.

 

Utah Code 35A-3-108 states:

“(1)(a) An applicant shall provide an assignment of support to the department regardless of whether the payment is court ordered.

(b) Upon the receipt of public assistance, any right to receive support from another person passes to the state, including a right to support on behalf of any family member for whom the recipient is applying for or receiving assistance, even if the recipient has not executed and delivered an assignment of support to the division as required by Subsection (1)(a).”

 

Utah Code 26B-9-213 states:

“(4) (a) If an obligee receives direct payment of assigned support from an obligor, the obligee shall immediately deliver that payment to the office.

(b) (i) If an obligee agrees with an obligor to receive payment of support other than in the court or administratively ordered manner and receives payment as agreed with the obligor, the obligee shall immediately deliver the cash equivalent of the payment to the office.”

 

On a child support case, retained support refers to a situation in which:

 

1.                   A IV-A or Medicaid recipient receives assigned spousal, child, and/or medical support directly from an NCP, the NCP’s employer, the clerk of the court, other jurisdiction, etc., and fails to forward the payment or cash equivalent to the Office of Recovery Services (ORS) in accordance with Utah Code 35A-3-108(1)(b) and 26B-9-213(4). If the CP receives a support payment directly from an NCP during IV-A time periods, s/he is required to turn the payment over to ORS immediately.

 

2.                   The CP makes an agreement with the NCP to receive “in-kind payments” in lieu of court or administratively ordered child support payments, and fails to forward the cash equivalent to ORS. For procedures and more information on assigning child support rights and in-kind payments, refer to CS 072P In-Kind Support and Proof of Direct Payments and CS 505P Assignment of Support Rights.

 

3.                   The CP receives a child support payment from ORS during a time period the child is in state custody.

 

NOTE: If the NCP makes payments directly to the CP during a Non-IV-A time-period, it is not considered “retained support.” It is considered a “direct payment.”

 

Pursuant to Utah Code 26B-9-111:

“(1) Child support is assigned to the department by operation of law when a child is residing outside of his home in the protective custody, temporary custody, custody, or care of the state for at least 30 days.

(2) The department has the right to receive payment for child support assigned to it under Subsection (1).

(3) The Office of Recovery Services is the payee for the department for payment received under this section.”

 

On CIC cases, if the NCP continues to pay the CP child support after a child has been placed in the custody of the state, the support is considered to be retained support and may have to be paid by the parent who received the support in error. Retained support may not be collected unless CIC has a Juvenile Court order requiring the parent(s) to pay support while the child is in care.

 

 

Procedures for IV-A Retained Support

 

If the NCP provides proof of payments made directly to the CP (e.g., receipt, cancelled check, etc.) for a IV-A time period, complete the steps listed below.

 

1.                   Review the worksheet and verify the NCP’s proof of payment. If insufficient information is provided, the child support debt cannot be adjusted. For more information regarding acceptable types of payments, see CS 072P In-Kind Support and Proof of Direct Payments. In order to represent the case at a hearing, the retained support team must have proof that the CP actually retained child support.

 

Because most types of verification may contain financial account, identity, or other sensitive information, ORS will not image or maintain copies of this type of documentation in any other format. These documents will be processed by a designated Quality Assurance Specialist (QA) in each region. The QA’s will complete the Proof of Direct or In-Kind Payment worksheet and forward it to the assigned caseworker. The assigned caseworker will review the worksheet, determine if credit for the direct payment(s) is appropriate, notify the parties and make or request the appropriate adjustment in ORSIS and, if necessary, make an overpayment referral as described below. Make sure the worksheet is added to the case file.

 

2.                   Check ORSIS. Verify that the CP received a IV-A grant for the month(s) the NCP made payment(s) directly to the CP. If the CP received a grant, you must contact the Department of Workforce Services to see if the CP has reported the retained support and his/her grant is being adjusted accordingly. If the grant has been adjusted for the support retained, do not refer the case.

                                                                                                                       

3.                   Contact the CP:

1.                   Call the CP, or send the Obligee Retained Support Letter to the CP. The letter notifies the CP of the retained support amount and asks him/her to forward the amount (or an equivalent amount if in-kind support was paid) to ORS.

 

NOTE: The CP needs to include the NCP’s child support case number with the payment.

2.                   If a phone call is made, document the call and when the payment will be made.

 

4.                   If the CP does not send or forward the retained support amount to ORS within a reasonable period of time (approximately 30 days), make a retained support referral on ORSIS to the CSS retained support team. The retained support team has a three-year statute of limitations from the date the retained support was discovered to begin an action against the CP to recover the debt.

EXCEPTION 1: If the amount of retained support is less than $125.00, give the NCP credit for the support paid but do not make the referral to Team 60. Document all actions taken on the case and that a retained support referral was NOT sent due to the amount.

EXCEPTION 2: If retained support is discovered more than three years after the date it was paid (e.g., the NCP notified ORS of the retained support from more than three years ago, but a referral was not sent), give the NCP credit for the support paid, but do not make a referral to Team 60. Document all actions taken on the case and that a retained support referral was NOT sent due to the three-year time period.
 
EXCEPTION 3: If the support was retained prior to August 1995, give the NCP credit for the support paid but do not make the retained support referral to Team 60. Document all actions taken on the case and that a retained support referral was NOT sent because the time period was prior to August 1995.

NOTE: If you need to make a retained support referral on a pre-order case, first establish the order giving the NCP credit for the amount of the retained support, add the full ordered amount on ORSIS, and then make the electronic referral for retained support.

If a retained support referral needs to be made on a debt in which all or part of the arrears have been unassigned, adjust the balance of the unassigned debt up to the amount that was unassigned. If the retained support amount is greater than the amount that was unassigned, adjust the balance of the debt that remains assigned and make the retained support referral for the amount adjusted from the assigned debt only.

 

5.                   Adjust the debt balance to give the NCP credit for the amount of retained support.

 

6.                   If the debt group adjusted is a IV-A debt and the retained support is $125.00 or greater, make the retained support referral.

 

7.                   Manually withdraw the electronic lien, if applicable.

 

8.                   Document the adjustment in the case narratives. Include information on the evidence received, the amount of the retained support referral, and the time periods support was retained.

9.                   On the next business day, complete the following:

a.                   Add the new retained support case number as an attribute on the worksheet in Content Manager.

b.                   Add the new retained support case number as an attribute on the Application for Services (particularly the assignment of rights) or the Referral Forms; and,

c.                   Document that the retained support referral was made and list the information that was attributed to the retained support case on Team 60 in Content Manager.

 

10.               Team 60 will attempt to collect the retained support from the CP.

 

If the retained support team determines the referral was sent in error (e.g., not really a retained support situation or the proof of payment evidence is insufficient), the CSS agent must add the amount of the retained support referral back to the NCP’s debt. If this occurs, Team 60 will notify the CSS agent.

 

EXCEPTION 1: If the amount of retained support credit was adjudicated in an administrative order by adjusting the less payment field in the judgment section of the Notice of Agency Action NAA, do not reverse the NCP's credit.

 

EXCEPTION 2: If the retained support hearing is unsuccessful only due to the unavailability of prior evidence documented on the worksheet (e.g., Team 60 is unable to obtain copies of the cancelled checks from the NCP again, etc.), do not reverse the NCP's credit.

 

 

Procedures for CIC Retained Support

 

Child support is due and payable on the first day of the month. If the child was removed from the home after the first day of the month, do not calculate retained support for that month. Likewise, if a child returns home after the first day of the month and the custodial parent received support for that month, calculate the retained support for that month. For additional information on charging support, refer to CS 1086P CIC Guidelines for Charging Support.

 

1.                   Verify that there is a Juvenile Court order requiring the parents to pay child support while the child is in care. If there is not a Juvenile Court order, do not collect retained support.

 

2.                   Determine the amount of retained support.

a.                   NADC Current Support (CRS) Paid on the CSS Case – If current support was paid toward the CSS case for a month that the child was in state custody as of the first day of the month, determine the amount of retained support by calculating the amount of money the former CP received on the NADC CRS debt for the time period that the child was in care.

 

NOTE 1: If the CP has other children on the CSS case, divide the total current support amount by the number of children to find an amount for each child and calculate the retained support for the child(ren) in care only.

 

NOTE 2: When an NADC CRS payment has already disbursed to the CP, the payment should not be transferred to any arrears owing on the CSS case or to the CIC case. The transfer of a disbursed payment creates an administrative retained case against the CP in ORSIS, and ORS/CSS is unable to recover these types of overpayments. CIC addresses this overpayment by establishing a retained support debt against the former CP.

 

NOTE 3: The payment verification procedure is not relevant for an NADC payment processed through ORSIS and issued to the former CP creating a retained support situation. Contact the former CP by phone or mail and inform him/her of the retained support amount and ask the CP to forward this amount to CSS. Narrate when the call was made and the outcome of the conversation. Continue to steps 3 and 4 below.

b.                   AFDC Current Support (CRS) Paid on the CSS Case – If a payment applied to an AFDC CRS debt for a month that the child was in care as of the first day of the month, contact the CSS worker and request that the worker transfer the money to the payor’s CIC case. The CSS worker will adjust the CRS debt and inactivate the child on the debt for the time frame the child is in care. Since the payment does not disburse to the former CP in this situation, there is no retained support for CIC to collect from the former CP.

c.                   IV-E Current support (CRS) Paid on the CIC Case – If a payment applied to the IV-E CRS debt for a month that the child returned home and was not in state custody as of the first day of the month, contact the CSS worker and request that the payor’s CRS debt be reinstated and coordinate the transfer of the payment to the payor’s CSS case. Since the CIC payment does not disburse, there is not a retained support situation.

d.                   Direct Payment Paid to the Former CP – If the support was paid directly to the CP, verify the NCP’s proof of payment by asking the NCP or CP to provide written proof. For more information about acceptable payment types, refer to CS 072P In-Kind Support and Proof of Direct Payments.

 

NOTE: Both the payor and the recipient of the alleged retained support should receive an opportunity to review and possibly contest the credit being proposed and the allegation of retained support.

 

3.                   If the former CP agrees to forward the identified amount of retained support s/he was paid by the NCP prior to giving the NCP credit on his/her CIC case, enter a posting instruction to direct the forwarded payment to the appropriate case and debt for the retained support time frame. Instruct the former CP to include the NCP's CIC case number with the payment amount.

 

4.                   If the former CP does not forward the retained support amount to CIC, give credit to the NCP who paid the support on his/her ORS/CIC case up to the amount indicated in the existing support order. Adjust the debt balance to give the NCP credit for the amount of the payments made.

 

NOTE: If you need to address the issue of retained support on a pre-order case, first establish the order, giving the NCP credit for the amount of the retained support by including time period in the judgment for arrears section of the NAA and showing the credit in the less payment field. Finally, give the NCP the credit for the retained support reflected in the order by adjusting the debt balance as described above.

 

5.                   CIC pre-order will prepare a Notice of Agency Action Determination of Retained IV-E Child Support Obligation to the former CP on his/her CIC case. Include the retained support amount, time frames, and proof of payment information. List in the worker entered narrative the assigned support payments received and explain the proof of payment documentation. This order is separate from the order that addresses the child support for state custody time frames to facilitate the identification of CIC retained support obligations.

 

NOTE: If the respondent has filed for bankruptcy, do not issue a sum certain judgment for retained support arrears on bankruptcy cases because issuing a judgment may be considered an “enforcement action.” Work with the AGO Bankruptcy Specialist for the next appropriate action and to determine what should be included on the Proof of Claim.

 

6.                   Once ordered, add the separate obligation and debt for retained support to the former CP's CIC support case on ORSIS.

 

7.                   Narrate in ORSIS all the actions taken.

 

8.                   The CIC post-order team will attempt to collect the retained support from the former CP. ORSIS distribution programming will automatically distribute payments based on priority posting rules.

 

 

Retained Social Security Benefits on CIC cases

 

If a parent receives Social Security (SSA) benefits for a child in his/her care prior to the state becoming payee of the benefit, ORS will not collect the retained amount. If CIC determines that the parents were charged for “retained” social security, refer to CS 852P Child Receiving Benefits Based on the Noncustodial Parent’s Social Security or Veterans Benefits for instructions.