M E M O R A N D U M

 IM-169  09/13/01  WAGE SUPPLEMENTATION CHANGES


SUBJECT:
WAGE SUPPLEMENTATION CHANGES
 
DISCUSSION:
Effective October 1, 2001, food stamp benefit diversion will no longer be a part of the supplement paid to employers with Wage Supplementation employees.

Wage Supplementation employers who have a current contract will receive a letter from Central Office explaining this change.  The changed supplement amount is included in the letter if the employer has a participant that is in the Wage Supplementation program currently.  Questions from employers can be directed to Central office.

Participants will receive a letter explaining possible eligibility for food stamps.  This letter will give the Wage Supplementation employee the opportunity to apply for food stamps timely.

Active Food Stamp Wage Supplement Cases

The certification period for active food stamp wage supplement participants with a certification longer than 12 months has been shortened to September 2001.  A letter has been sent to those households notifying them of the expiration of their certification with a copy to the county office.  A food stamp application has also been sent to those households. 

Active food stamp wage supplement participants with a certification less than 12 months have been sent a notice advising them of the removal of food stamps from wage supplementation.  A Change Report Form is enclosed with the notice requesting the household complete and return the form by September 17, 2001.  Copies of letters sent to the participants are being sent to the county offices. 

Case Managers/Caseworkers are responsible for reviewing the household's eligibility and adjusting or closing the food stamp case based on the information provided on the Change Report Form.  Adverse action procedures should be followed for households who fail to return the Change Report form or whose information results in reduced benefits or ineligibility.  Send the household a Benefit Adjustment Notice upon completion of the case action.

Food Stamp Applications by Temporary Assistance Wage Supplement Households

System changes have been completed that no longer allow  food stamp benefits to be diverted to wage supplementation. Temporary Assistance households participating in Wage Supplementation and making application for food stamp benefits will have their eligibility, benefit amount, and certification period assigned the same as any other Temporary Assistance household.

Food Stamp Budgeting Procedures

Effective October 1, 2001, budget the Temporary Assistance diversion as unearned income and the remainder of the participant's earnings as earned income during the time the participant is in wage supplementation.

 
NECESSARY ACTION:
  • Review this memorandum with necessary staff.
  • Review all active food stamp Wage Supplement cases.
  • Update FSU5 as necessary to issue benefits or close the  food stamp case.
DC/DBH/JKW
Distribution #6

[ Memorandum Table of Contents ]

IM-168
IM-170