Pursuant to section 5101.801 of the Revised Code and section 206.67.10 of Amended Substitute House Bill Number 66 (Am. Sub. H.B. 66) of the 126th General Assembly, the Ohio Department of Job and Family Services (ODJFS) establishes a new Title IV-A program, the Employment Retention Incentive (ERI) Program. The ERI program will be administered by the County Departments of Job and Family Services (CDJFS) under which the cash incentives will be issued to eligible employed individuals for the purpose of promoting job retention and eliminating OWF dependency. To help the individuals served by the CDJFS to maximize their potential and achieve these goals, Am. Sub. H.B. 66 set aside $8.6 million in TANF funds in SFY 2007.

This letter transmits the proposed new ERI rule, 5101:1-23-80, with an effective date of August 1, 2006. If there are any changes made to the rule contained in this CAMTL during the JCARR review period, the corrected rule will be sent out in the next CAMTL. This cover letter includes a summary statement of policy changes. Clearance control number 5701 was assigned when the new ERI policy was placed in the clearance process.

ERI PROJECT BACKGROUND

ODJFS has reviewed similar and dissimilar ERI programs operating in other states and within Ohio. Based upon this analysis, the premise is that ERI payments will promote employment retention and will engage counties in providing additional services to assist employed families.

The following provides a sample of ERI programs and information obtained from other states:

• The District of Columbia reported that their bonuses of a total of $750 issued at 30, 90, and 180 days appeared to be a strong incentive to report income and keep working.
• South Carolina provides ERI in their "Moving Up Project" established 6/1/01 and reported that clients must be followed up with and "in terms of case work we found it best to give the client a list of incentives up front in their first engagement with the worker so this would motivate them to participate and meet their goals." Gift certificates and cash bonuses are used. Of 2,413 clients, 59% were new hires, 18% advanced in wages or benefits, and 20% were in educational services.
• Mississippi's ERI program issues $100 after 3 months, $200 after 6 months, $300 after 9 months, and $400 after 12 months for a total of $1000.

Several counties within Ohio provide ERI payments through their PRC programs:

• Scioto, Greene, Pike, Mahoning, Miami, and Morrow counties currently use their PRC funds to support employment retention incentive programs for clients while Montgomery and Franklin pay their contracted providers incentives if individuals remain employed.
• Scioto and Greene CDJFS operate PRC based comprehensive ERI programs and have found an ERI incentive beneficial to the transition from OWF to employment. While report data is limited, Scioto CDJFS is finding that most individuals in their ERI program are not returning to OWF.
• Based on the success of their program, Greene CDJFS has increased their bonus amounts to $100 upon approval, $200 after 3 months and $300 after 6 months. Scioto CDJFS issues $100 the 1st month, $200 after 3 months, $300 after 6 months and $500 if employed 12 months.

Scioto and Greene counties were particularly informative and crucial in their advisory capacity. They provided their unique ERI program information, applications, notices and ERI data that formed the foundation of a flexible and comprehensive ERI program that will be supported in the automated CRIS-E system. As the ERI program development progressed, feedback was also generated from the Office of Family Stability's Executive Leadership Committee and county CRIS-E liaison business partners.

Data from the "Employed Individual Returning to Assistance Report" (GWP540RA) for 12/05, 01/06 and 02/06, shows that 65% to 66% of the employed individuals returning to OWF assistance do so within the first 3 months. The ERI program will provide two cash incentives totaling $400 within the first 3 months that, in conjunction with an individual's employment, should maximize job retention within this time frame. Two additional payments totaling $600 will be provided over the next 6 months to encourage job retention during the entire nine months following OWF termination. Best practices from other states and from our own counties include combining the ERI payments with county PRC transitional employment benefits and services to further maximize job retention. Assimilation into the workforce decreases the likelihood of OWF dependency.

ERI APPLICATION

A new ERI application, JFS 07204, "Application for Employment Retention Incentive (ERI)" (07/2006) has been designed to be used by individuals applying for the ERI program. The ERI application was developed to mirror the format of the JFS 07200, "Request for Cash, Food Stamp, and Medical Assistance". It consists of an informational coversheet and a one-page application that is completed by the ERI applicant.

The coversheet provides information to the ERI applicant regarding the following application procedures:

• A description of the ERI program.
• How to apply for the ERI incentive.
• When to apply for the ERI program.
• The ERI incentive payments and when they will be issued.
• Where the ERI application should be sent and other available services.
• Information regarding the social security number.

The application page requests the ERI applicant's name, SSN, address, employment data, signature and date. Up to four employers may be listed. There is an area for the CDJFS to capture the recent case number and date the ERI application was received. Information concerning the applicant's civil rights is also provided. A face-to-face interview is not required for the ERI program.

The JFS 07204 will be stocked at the ODJFS warehouse. An initial supply will be sent to each CDJFS and additional applications must be re-ordered through the normal channels. The application will also be available online at https://jfs.ohio.gov/ofam/cmandfsa.stm and also on the ODJFS Forms Central page at http://www.odjfs.state.oh.us/forms/inner.asp.

Spanish and Somali versions of the application will be available at a later date at which time a CAMTL will be issued. The Spanish and Somali versions will only be available online; copies will not be maintained at the ODJFS warehouse.

ERI INFORMATION BROCHURE

An informational brochure about the ERI program, JFS 07206 "Employment Retention Incentive" (07/2006), was completed with assistance from the Office of Communications and will be available for use by the CDJFS. This brochure can be used to inform OWF applicants and/or recipients about the ERI program. Each CDJFS will determine the most opportune time to describe the ERI program to OWF applicants and recipients. Examples of times when the ERI program may be reviewed are during the application/reapplication process or during the appraisal/assessment process.

The JFS 07206 will be stocked at the ODJFS warehouse. An initial supply will be sent to each CDJFS and to advocate groups; additional brochures must be re-ordered through the normal channels. The brochure will also be available on the ODJFS Forms Central page at http://www.odjfs.state.oh.us/forms/inner.asp.

Spanish and Somali versions of the brochure will be available at a later date at which time a CAMTL will be issued. The Spanish and Somali versions will only be available online; copies will not be maintained at the ODJFS warehouse.

5101:1-23-80 EMPLOYMENT retention incentive (ERI) program.

The ERI program is a cash incentive bonus administered by the CDJFS for individuals who are employed and have been terminated from OWF on or after July 31, 2006.

To be eligible for the ERI program, an individual's OWF case must be closed. The ERI application must be completed and returned to the CDJFS no later than the second month following OWF termination. It can be submitted prior to the termination of the OWF case.

Once an application is received, the following eligibility factors must be met:

• The ERI applicant must have been in receipt of OWF and the OWF case is closed.
• At least one OWF recipient in the last month of OWF eligibility had countable employment income in the month that OWF was terminated.
• At the time of application, the ERI applicant is employed an average of at least 25 hours per week or earning at least the equivalent gross wages of federal minimum wage times 25 hours per week.

An individual who is eligible for the ERI program may receive up to four ERI payments during the nine month ERI cycle. The ERI cycle begins with the first month for which an ERI incentive payment is issued and ends nine months later. The first ERI payment of $200 will be issued upon approval of ERI. Subsequent ERI payments are as follows:

• 3rd month ERI payment is $200;
• 6th month ERI payment is $200;
• 9th month ERI payment is $400.

For subsequent payments, there are no minimum hourly or wage requirements but existence of employment must be verified. In order to receive the subsequent months' ERI payments, employment must be confirmed as of the 20th day of the corresponding verification month. The ERI verification months are the 2nd, 5th, and 8th months of the ERI cycle.

To minimize the verification process during these time frames for the CDJFS, an ERI recipient who receives either Food Stamp or medical benefits and is still employed as of the twentieth day of the ERI verification month is eligible for the corresponding ERI payment. Employment information contained on CRIS-E screens is sufficient verification of continued employment and the CDJFS can approve the ERI payment. This verification check will be conducted through CRIS-E and an alert will be generated to let the ERI worker know that employment exists.

Example: An ERI applicant receives the first ERI payment in 10/06. CRIS-E verifies on 11/20/06 that the ERI recipient is in an open Food Stamp assistance group (AG) and is employed. An alert is generated to the ERI worker. The ERI worker approves the ERI payment 11/21/06 and the payment is sent out through the CRIS-E batch process.

Individuals not currently receiving Food Stamp or medical benefits will be issued a notice on the 20th day of the verification month requesting verification of employment. Acceptable methods of verification are set forth in rule 5101:1-2-20. If verification is not received within ten calendar days and good cause does not exist for returning the verification, the corresponding ERI payment should be denied. Denial of an ERI payment does not preclude eligibility for subsequent ERI payments.

Example: An ERI applicant receives the first ERI payment in 10/06. CRIS-E verifies on 11/20/06 that the ERI recipient is not receiving any food stamp or medical benefits and sends the ERI verification notice to the recipient providing for 10 calendar days to return the verification. The ERI recipient returns the verification of employment on 11/25/06 and the ERI worker approves the ERI payment. The ERI payment is sent out through the CRIS-E batch process.

Additional factors include:

• Residency in Ohio must be maintained;
• Ineligibility due to receipt of fraudulent assistance as set forth in section 5101.83 of the Revised Code is not applicable;
• Overpayments are subject to recovery;
• Hearing rights are applicable.

An ERI applicant/recipient in a multiple-parent assistance group who subsequently separates may continue to be eligible for ERI payments. ERI incentives are provided to an employed individual and follow that individual. If the ERI individual relocates to another county, the originating county of residence may continue to process subsequent ERI payments unless the new county contacts the original county requesting transfer of the ERI case. If the ERI recipient who moves is in receipt of Food Stamp or medical benefits, the transfer policy in rule 5101:1-1-14 is applicable.

There is a limitation on how often an individual can receive ERI payments. An individual can receive ERI payments once in a thirty-six consecutive month period that begins the month of the initial ERI incentive payment (the first month of the 9-month ERI cycle). The nine-month ERI cycle is a consecutive period and continues even if an ERI incentive payment was not issued in a subsequent month.

Language was added at the end of this rule to provide policy regarding the possible suspension of applications to stay within the confines of the appropriated funds for the ERI program. At this time, there are no plans to suspend applications for the ERI program. Once an individual is approved for the ERI program the funds will be encumbered for that individual. However, based on the projected ERI appropriations it is possible that a suspension may have to be instituted in the future should there be more ERI applicants than expected. Therefore, we included language in this rule to that effect.

MISCELLANEOUS

Language is being added to all OWF approval and termination notices providing information about the ERI program. In addition, language about the ERI program is being added to OWF reduction notices that are generated due to employment.

The CDJFS is encouraged to utilize PRC services and/or benefits to provide wrap-around support to the ERI recipient. The receipt of ERI payments does not preclude a CDJFS from issuing PRC benefits.

ERI payments are excluded as income for OWF, DFA, DMA, Medicaid and Child Care benefits. ERI payments are considered 'non-assistance' and as such does not require an assignment of child support rights. ERI payments are countable as unearned income for Food Stamp benefits; the ERI payments are budgeted over the period of time it is intended to cover pursuant to rule 5101:4-4-19 of the Administrative Code.

Example: An ERI applicant is approved for ERI payments for a nine-month cycle of 10/06 to 06/07. For Food Stamp purposes ERI is intended to cover the nine months and the total ERI issued during the nine months, $1000, should be prorated for the nine months by dividing $1000 by 9 for an amount of $111.00 to be used as unearned income in the FS budget. The FS worker should enter $111.00 as 'OTER' on AEFMI for the period 10/06 to 06/07. If the individual becomes ineligible for ERI payments the county agency must process the known change timely (i.e. remove the future prorated payments of $111.00 as OTER on AEFMI and provide proper notification of the income change).

CRIS-E

A new screen (AEOER) has been created within CRIS-E to provide the counties automated support for the ERI process. Notices, benefit issuance, and alerts will also be supported. New ERI approval and denial notices have been created. CRIS-E will confirm an open span on the employment screens and that the individual is not in receipt of OWF for those individuals receiving Food Stamp or Medical benefits and send notices to those individuals not currently on Food Stamp or Medical benefits requesting current employment verification. A new unearned income type of "Other", OTER, is being added to table TVIN so that the ERI payment can be counted in only the Food Stamp budget. A CRIS-E bulletin will be issued in July prior to the implementation date of the ERI program. The View Flash Bulletin will provide detailed information on the ERI process in CRIS-E.

INSTRUCTIONS: