Sunday, August 27, 2006

Act 109 Requirements

Act 109 of 2006 becomes effective on September 5, 2006. The Act provides that WCJ’s must direct reimbursement of outstanding support liens to PASCDU when a net award of benefits to the Claimant exceeds $5,000.00. The lien value that will be used is the amount posted at www.childsupport.state.pa.us. Attorneys may register and obtain the information for use in Act 109 compliance. One other important consideration is that the Claimant information upon which verification of the lien is based must be presented to the WCJ in writing, with verification subject to 18 Pa.C.S.A. Section 4904.

Disputes will arise, particularly due to a collection authority placing an entire month’s obligation as a lien on the first of the month. A printout should be requested on the last day of the month to avoid this issue.

In the event of a dispute, the WCJ has the authority to order that the undisputed amount be paid to PASCDU and the disputed amount escrowed by Claimant’s Counsel. Since there is no workers’ compensation issue beyond the validity of the support arrearage data, the WCJ will ordinarily not exercise the WCJ’s authority under Rossa v. WCAB (City of Philadelphia) to resolve the dispute.

No comments: