[Imcamericorps] Fwd: Stipend questions

Thu Dec 8 14:52:00 CST 2011

Please read the following.  FYI.

---------- Forwarded message ----------
From: Fernandes, Lisa <Lisa.Fernandes at illinois.gov>
Date: Wed, Dec 7, 2011 at 11:30 AM
Subject: Stipend questions
To: "Ammons, Carol" <carolammons at gmail.com>, "Turner, Jason" <
treasurer at ucimc.org>

**
 § 2522.245 How are living allowances disbursed?

A living allowance is not a wage and programs may not pay living allowances
on an hourly basis.  Programs must distribute the living allowance at
regular intervals and in regular increments, and may increase living
allowance payments only on the basis of increased living expenses such as
food, housing, or transportation.  Living allowance payments may only be
made to a participant during the participant’s term of service and must
cease when the participant concludes the term of service.  Programs may not
provide a lump sum payment to a participant who completes the originally
agreed-upon term of service in a shorter period of time.

[73 FR 53752, Sept. 17, 2008].

C. 17. Does federal law exclude AmeriCorps living allowance payments from
state pension plan contribution requirements?

The Corporation’s position is that mandatory contributions from the living
allowance to a retirement system conflicts with the federal statutory
requirement that AmeriCorps members receive a specific living allowance
amount. The national service laws specify how much an AmeriCorps member is
entitled to receive as a living allowance when serving in AmeriCorps. The
laws also specify what must and what may be deducted from the living
allowance. State pension plan contributions are not among the deductions
that may be made from the living allowance. The member’s living allowance
is a federal benefit, as opposed to a wage. Consequently, deductions from
the living allowance prior to the member receiving it are not permitted. In
addition, a member is not considered to be an employee of the program in
which the member is enrolled, and thus generally not subject to employment
laws, unless specifically authorized by statute. 42 U.S.C. § 12511(17)(B).

In short, while there is no specific exemption in the national service laws
for state pension plan contributions, the statute’s failure to specify that
such contributions may or must be made from the living allowance means that
the living allowance is not available for that purpose.
C. 74. Is the AmeriCorps living allowance considered income for determining
TANF eligibility for AmeriCorps members?

Yes. The National and Community Service Act of 1990 provides that
allowances, earnings, and payments to participants in AmeriCorps State and
National programs “shall not be considered income for the purposes of
determining eligibility for and the amount of income transfer and in-kind
aid furnished under any federal or federally-assisted program based on
need, other than as provided under the Social Security Act (SSA).”
Temporary Assistance for Needy Families (TANF) is a block grant program
provided under the SSA. Because TANF is under the SSA, the AmeriCorps State
and National living allowance may be considered income for the purposes of
determining eligibility for and the amount of aid under TANF.
C. 62. If the AmeriCorps child care provider does not cover all of a
member’s child care expenses, is it allowable for the program to use other
CNCS grant funds to cover the remaining unpaid balance?  Can they use
grantee funds for this expense and report this as match?

Yes. They can use CNCS funds or grantee funds and count them as match as
long as it does not exceed the allowance rate as set forth in 45 CFR
§2522.250 (a)(3<http://a257.g.akamaitech.net/7/257/2422/13nov20061500/edocket.access.gpo.gov/cfr_2006/octqtr/pdf/45cfr2522.250.pdf>
).
C. 80. * Do AmeriCorps benefits count as income in determining eligibility
for other federal government benefits?*

The answer depends upon the federal benefits program in question. The
National and Community Service Act of 1990 (NCSA) provides that allowances,
earnings, and payments to participants in AmeriCorps programs “shall not be
considered income for the purposes of determining eligibility for and the
amount of income transfer and in-kind aid furnished under any federal or
federally assisted program based on need, other than as provided under the
Social Security Act.”

The Heroes Earning Assistance and Relief Tax Act of 2008 provided that
AmeriCorps benefits, including the living allowance, health insurance,
child care, and the education award (and related interest payments) are
excluded from countable income for determining eligibility for Supplemental
Security Income (SSI).

Therefore, if the benefits program is federally-funded and is based on
need, and is not provided under the Social Security Act (other than SSI),
AmeriCorps State and National benefits should not affect an AmeriCorps
member’s eligibility for such assistance. Examples include Food Stamps,
Pell Grants, HUD housing programs, and VA benefits.

If, on the other hand, the benefits program is not federally-funded, not
need- based, or is provided under the Social Security Act (other than SSI);
the member’s eligibility for those benefits might be affected. The member
should contact the relevant state or federal agency responsible for the
program in question, or the state commission, to get a determination.
Examples of benefits that might be affected by AmeriCorps benefits are
Temporary Aid for Needy Families (TANF), Medicaid, Medicare, and SSDI.

Refer to the Corporation’s website at
http://www.americorps.gov/for_organizations/funding/gc_guidance.asp for
additional information.

Reference:        42 U.S.C. § 12637(d)

Lisa Fernandes, AmeriCorps Program Officer
Serve Illinois Commission
Illinois Department of Human Services
815 E. Monroe
Springfield, IL  62701
217-558-7126 (office)
217-558-9548 (fax)
217-299-0943 (cell)
www.serve.illinois.gov

-- 
Carol Ammons-Program Director
UC-IMC/AmeriCorps
202 S. Broadway Avenue
Urbana, IL 61802
217-344-8820 (office)
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