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Effective: 3/24/2025

5.10 Suspension and Termination of Subsidized Permanent Custody (SPC) Assistance

Legal Authority

Introduction

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Practice Guidance

​Subsidized permanent custody assistance may be terminated for any of the following reasons:

  1. ​The Cabinet for Health and Family Services (CHFS/Cabinet) determines: 
    1. A child is no longer receiving financial support from the permanent caregiver;
    2. The permanent caregiver(s) legal responsibility to the child has ended;
    3. Custody is reassigned to a successor caregiver;
    4. In the event the state legislature fails to appropriate funds to support the SPC program; 
    5. In the event of a new DPP-1257 Subsidized Permanent Custody Agreement; and
    6. Once the SPC assistance has been terminated, it may not be resumed or reinstated. 
  2. ​Caregiver and Child:
    1. ​At the request of the permanent caregiver(s);
    2. Upon the death of the permanent caregiver(s);
    3. Upon the child's death, marriage, or military service;
    4. When the child reaches age eighteen (18); or youth over the age of eighteen (18) who is no longer meeting the eligibility requirements for subsidized permanent custody monthly maintenance payments; and
    5. Upon high school graduation or the child's nineteenth (19th) birthday, whichever comes first. ​1
  3. ​Temporary suspension of subsidized permanent custody monthly maintenance may occur during periods of time in which the child re-enters the custody of the cabinet. The monthly maintenance payment may be reduced to one dollar ($1.00) when: 
    1. The caregiver fails to provide documentation demonstrating financial responsibility and support after the cabinet has requested the documentation from the caregiver at least three (3) times). 
      1. ​This is applicable when the Cabinet learns that the youth may no longer be residing in the adoptive home (state and title IV-E subsidies) including periods when the youth re-enters out-of-home care (OOHC) (for title IV-E subsidies)
      2. The requests for documentation shall be made and documented via written communication to the caregiver.
      3. The worker uses the letter templates to mail a series of three (3) letters if needed.  The first (1st) Adoption or Subsidized Permanent Custody (SPC) Subsidy Reduction Letter template is mailed and notifies the adoptive parent(s) that the subsidy will be reduced if the proper documentation is not received within forty-five (45) days.
      4. The Adoption or Subsidized Permanent Custody (SPC) Subsidy Reduction Second Letter template is mailed two (2) weeks after the first (1st) letter.
      5. .The Adoption or Subsidized Permanent Custody (SPC) Subsidy Reduction Third Letter​ template is mailed along with the DPP-154A Protection and Permanency Notice of Intended Action, making sure to provide the adoptive parent(s) with a ten (10) day​ notice of the reduction date that was established in the first (1st) letter mailed.
      6. The payment amount shall be reduced to $1.00.

    2. The permanent caregiver notifies the Cabinet of any changes in circumstances that would change the payment amount or make the permanent caregiver ineligible for payments; 
    3. The child reenters the custody of the cabinet; and
    4. The Cabinet shall resume payment if modifications to the agreement are agreed upon by the Cabinet and the permanent caregiver, or if the permanent caregiver resumes support of the child. If the payment is suspended and resumed, backpay will not be issued.  ​

    ​​


    Procedure

    ​The recruitment and certification (R&C) worker/permanency worker:

    1. Advises the caregiver(s) of the reduction, suspension, or termination, in writing using the DPP-154A Notice of Intended Action, at least ten (10) calendar days before the intended action; 
    2. Notes the date and reason for reduction, suspension, and termination;
    3. Sends with the notice the DPP-154 Protection and Permanency Service Appeal informing the caregiver(s) of their right to file a service appeal as outlined in SOP 30.1 Service Appeals; 
    4. Completes a new DPP-1257 Subsidized Pemanency Custody (SPC) Agreement for those receiving title IV-E SPC assistance to continue to receive SPC assistance through state funds. All required parties sign the new DPP-1257; and 
    5. Submits the School Verification Form and updated DPP-1257 to billing specialist and children's benefit worker (CBW). Please refer to SOP 13.46 Continuation of Adoption Assistance After Age 18.​  for additional information.

    ​

    ​​​Footnotes

    1. The caregiver requests that the authorized representive designated on the required form school complete a School Verification Form. The permanent caregiver submits the form to the R&C worker. The R&C/subsidy worker submits the School Verification Form to the billing specialist and CBW. Please refer to SOP 13.46 Continuation of Adoption Assistance After Age 18 ​for additional information.​​​

    Documents

    Revisions

    ​3/24/2025

    SOP 5.10 Suspension and Termination Discontinuance of Subsidized Permanent Custody (SPC) Assistance

    F.  Once the SPC assistance has been terminated, it may not be resumed or reinstated. ​3.  Temporary suspension of subsidized permanent custody monthly maintenance may occur during periods of time in which the child re-enters the custody of the cabinet. The monthly maintenance payment may be reduced to one dollar ($1.00) when: 

      1. The caregiver fails to provide documentation demonstrating financial responsibility and support after the cabinet has requested the documentation from the caregiver at least three (3) times). 
        1. ​This is applicable when the Cabinet learns that the youth may no longer be residing in the adoptive home (state and title IV-E subsidies) including periods when the youth re-enters out-of-home care (OOHC) (for title IV-E subsidies)
        2. The requests for documentation shall be made and documented via written communication to the caregiver.
        3. The worker uses the letter templates to mail a series of three (3) letters if needed.  The first (1st) Adoption or Subsidized Permanent Custody (SPC) Subsidy Reduction Letter template is mailed and notifies the adoptive parent(s) that the subsidy will be reduced if the proper documentation is not received within forty-five (45) days.
        4. The Adoption or Subsidized Permanent Custody (SPC) Subsidy Reduction Second Letter template is mailed two (2) weeks after the first (1st) letter.
        5. The Adoption or Subsidized Permanent Custody (SPC) Subsidy Reduction Third Letter​ template is mailed along with the DPP-154A Protection and Permanency Notice of Intended Action, making sure to provide the adoptive parent(s) with a ten (10) day​ notice of the reduction date that was established in the first (1st) letter mailed.​
        6. The payment amount shall be reduced to $1.00.

      2. Three (3) documented attempts by the Cabinet to make annual contact have failed due to lack of response from the permanent caregiver;​


    D.  Cabinet has repeatedly requested documentation regarding financial responsibility from the permanent caregiver; 
    Footnotes: 

    1. The caregiver requests that the authorized representive designated on the required form school complete a School Verification Form. The permanent caregiver submits the form to the R&C worker. The R&C/subsidy worker submits the School Verification Form to the billing specialist and CBW. Please refer to SOP 13.46 Continuation of Adoption Assistance After Age 18 ​for additional information.​​​

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