TEGL_18-16_Change-1.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION WIOA-NFJP CORRESPONDENCE SYMBOL OWI DATE July 12 2021 RESCISSIONS TEGL 18-16 EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 18-16 CHANGE 1 TO STATE WORKFORCE ADMINISTRATORS STATE WORKFORCE AGENCIES STATE WORKFORCE LIAISONS STATE AND LOCAL WORKFORCE BOARDS AND CHAIRS AMERICAN JOB CENTERS NATIONAL FARMWORKER JOBS PROGRAM GRANTEES STATE MONITOR ADVOCATES FROM SUZAN G. LEVINE Principal Deputy Assistant Secretary SUBJECT Change 1 to Training and Employment Guidance Letter 18-16 Program Eligibility and Enrollment Guidance for the National Farmworker Jobs Program 1.Purpose. To clarify participant eligibility for the National Farmworker Jobs Program NFJP authorized under Section 167 of the Workforce Innovation and Opportunity Act WIOA . 2.Action Requested. NFJP grantees should use this guidance when enrolling individuals for services to comply with portions of WIOA Title I Section 167 and the WIOA Final Rules. NFJP grantees must actively work with their American Job Centers AJC and other workforce system partners in identifying services and programs that are tailored to the applicants needs and career pathway interests. Individuals who are determined ineligible for NFJP should be connected to other AJC services or alternative programs for which they qualify. 3.Summary and Background. a.Summary This Change 1 allows grantees to consider the nature of the agriculture industry including farmworkers seasonal employment patterns and irregular income when determining program eligibility. Additionally Section 4.II Other Key Requirements is updated to reflect an order of a United States District Court regarding consideration of Deferred Action for Childhood Arrivals DACA . This Change 1 also provides guidance regarding the updated low-income definition under the Consolidated Appropriations Act 2021 P.L. 116-260 for determining eligibility of participants to receive services through NFJP grants awarded with Program Year 2021 funds. Additionally Section 4.I Eligibility Requirements for NFJP Participants updates the list 2 of individuals that grantees can serve through NFJP to align with the approved Employment and Training Administration ETA Form 9172 Department of Labor DOL -Only Participant Individual Record Layout PIRL . Furthermore this guidance includes Attachment I Included Income Excluded Income and Examples of Methods to Calculate Income Tool. All other information in TEGL 18-16 remains the same. b. Background ETA published TEGL 18-16 in January 2017. In the years since grantees have asked questions about how income should be calculated in determining participant eligibility. Further courts have addressed questions on DACA and the recent appropriations act adjusted program eligibility. This Change addresses all three of these occurrences. 4. Program Details. I. Eligibility Requirements for NFJP Participants. Individuals receiving career services training services housing services youth services or related assistance services through NFJP funding must meet on the date of application for enrollment criterion A and criterion B below as defined in 20 CFR 685.110 A. To receive NFJP services an individual must be either a n i. Eligible seasonal farmworker adult ii. Eligible migrant farmworker adult iii. Eligible migrant and seasonal farmworker MSFW Youth iv. Dependent Adult of an eligible MSFW or v. Dependent Youth of an eligible MSFW. and B. A low-income individual who faces multiple barriers to economic self-sufficiency as defined in Section IV.6 below. Note Grantees may enroll a participant as either MSFW adult or MSFW youth participant as described in 20 CFR 685.320 but not in both categories. See definitions in Section 4.III below. Additionally NFJP-funded permanent housing developed with NFJP funds must be promoted and made widely available to eligible MSFWs but occupancy is not restricted to eligible MSFWs. II. Other Key Requirements. Male participants in NFJP must have presented and submitted to registration as required by Section 3 of the Military Selective Service Act 50 U.S.C. App. 453 see WIOA Section 189 h . TEGL 11-11 Change 1 and 2 provide Selective Service registration requirements for ETA programs authorized by WIOA. TEGL 11-11 Change 1 and Change 2 implemented the requirements of WIA Section 189 h and WIOA retains the same requirements. This guidance establishes that individuals who failed to register may still be eligible for NFJP services if they are able to provide and the grantee determines that there was not a knowing and willful failure to register according to the definitions provided in TEGL 11-11 Change 1 and Change 2. Please visit the Selective Service website for more information about the registration requirements at www.SSS.gov. The Selective Service System also provides a quick 3 reference chart showing who must register located at https www.sss.gov wp- content uploads 2020 11 WhoMustRegisterChart.pdf. Please note that TEGL 2-14 specifies that an individual who has been granted relief under DACA and has employment authorization documents may be eligible to receive DOL- funded services provided that the individual meets all other program eligibility requirements . NFJP grantees must continue to follow existing DOL policy in TEGL 2- 14 and any updated guidance DOL releases on these individuals eligibility for DOL- funded programs. For further information about eligibility for DACA please review the U.S. Citizenship and Immigration Services USCIS website https www.uscis.gov . For information on prohibition on discrimination against certain non-citizens see WIOA Section 188 a 5 . III. Definitions. To help determine participant eligibility under section 4.I. of this TEGL see the definitions below A. Eligible seasonal farmworker as defined in WIOA Section 167 i 3 A means a low-income individual who i. for 12 consecutive months out of the 24 months prior to application for the program involved has been primarily employed in agricultural or fish farming labor that is characterized by chronic unemployment or underemployment and ii. faces multiple barriers to economic self- sufficiency. Please note that dependents of an eligible seasonal farmworker may receive NFJP services. The terms primarily employed in agricultural or fish farming labor used in the definition of eligible seasonal farmworker refer to an individual who earns at least 50 percent of their total income from farmwork or is employed at least 50 percent of their total employment time in farmwork. The terms chronic unemployment or underemployment used in the definition of eligible seasonal farmworker refer to the nature of the agriculture or fish farming labor force as a whole and not whether an applicant is either chronically unemployed or underemployed. For the purposes of determining eligibility grantees do not need to demonstrate that an individual is either chronically unemployed or underemployed. Similarly grantees are not required to separately document that an individual faces multiple barriers to economic self-sufficiency in determining eligibility since farmworker status and low-income status are both barriers to employment as defined in WIOA Section 3 24 and thus individuals who meet the farmworker and low-income criteria have multiple barriers by definition . To effectively serve all NFJP participants grantees are encouraged to assess participants experience skills and needs leveraged with labor market information to help inform their career planning approach. Additionally although grantees are not required to separately document multiple barriers to determine eligibility grantees should document any information about an applicant s barriers to economic self-sufficiency and use it to inform the development of a career plan for all participants as well as to improve the program s effectiveness. Career planning is a client-centered 4 approach designed to develop comprehensive programs and to coordinate supportive services during program participation and after job placement described in WIOA Section 3 8 . B. Eligible migrant farmworker as defined in WIOA Section 167 i 2 means an eligible seasonal farmworker as defined in WIOA Section 167 i 3 whose agricultural labor requires travel to a job site such that the farmworker is unable to return to a permanent place of residence within the same day. Please note that dependents of eligible migrant farmworkers may receive NFJP services. C. Eligible MSFW youth means an eligible MSFW aged 14-24 who is individually eligible or a dependent of an eligible MSFW. Grantees may enroll participants aged 18-24 as either an MSFW adult or an MSFW youth participant described in 685.110 but not in both categories. D. Dependent of an MSFW as defined in 20 CFR 685.110 is an individual who 1 Was claimed as a dependent on the eligible MSFW s Federal income tax return for the previous year or 2 Is the spouse of the eligible MSFW or 3 If not claimed as a dependent for Federal income tax purposes is able to establish i A relationship as the eligible MSFW s A Child grandchild great grandchild including legally adopted children B Stepchild C Brother sister half-brother half-sister stepbrother or stepsister D Parent grandparent or other direct ancestor but not foster parent E Foster child F Stepfather or stepmother G Uncle or aunt H Niece or nephew I Father-in-law mother-in-law son-in-law or J Daughter-in-law brother-in-law or sister-in-law and ii The receipt of over half of his her total support from the eligible MSFW s family during the eligibility determination period. Note To receive services as dependents the family members of an eligible MSFW must meet the definition of a dependent as described in 20 CFR 685.110. For the purposes of determining eligibility for a dependent of an eligible MSFW the dependent s farmworker family member is required to demonstrate that they are an eligible MSFW by meeting both the eligibility requirements in criterion A farmworker status and criterion B low-income status . For the purpose of determining eligibility for individuals receiving housing services the same eligibility requirements farmworker status and low-income status apply as 5 described in Section 4.I of this TEGL. For an MSFW s family member who does not meet the definition of dependent at 20 CFR 685.110 grantees must serve them as an eligible MSFW individual or Other Individual as appropriate. E. Low-Income Individual means an individual as defined in WIOA Section 3 36 A and incorporating the low-income provision of the NFJP appropriations language in Public Law 116-260 who i. Receives or in the past 6 months has received or is a member of a family that is receiving or in the past 6 months has received assistance through the supplemental nutrition assistance program SNAP established under the Food and Nutrition Act of 2008 7 U.S.C. 2011 et seq. the program of block grants to States for temporary assistance for needy families program TANF under part A of title IV of the Social Security Act 42 U.S.C. 601 et seq. or the supplemental security income SSI program established under title XVI of the Social Security Act 42 U.S.C. 1381 et seq. or State or local income-based public assistance ii. Is in a family with total family income that does not exceed the higher of 1. 150 percent 1 of the poverty line 2 Note this provision of the low- income definition takes effect July 1 2021 for determining eligibility of participants to receive services through NFJP grants awarded with Program Year 2021 funds. For determining eligibility of participants to receive services through Program Year 2020 funds or earlier grantees must use 100 percent of the poverty line for this provision or 2. 70 percent of the Lower Living Standard Income Level LLSIL iii. Is a homeless individual as defined in Section 41403 6 of the Violence Against Women Act of 1994 42 U.S.C. 14043e 2 6 or a homeless child or youth as defined under Section 725 2 of the McKinney-Vento Homeless Assistance Act 42 U.S.C. 11434a 2 iv. Receives or is eligible to receive a free or reduced price lunch under the Richard B. Russell National School Lunch Act 42 U.S.C. 1751 1 Note The Consolidated Appropriations Act 2021 P.L. 116-260 specified that notwithstanding the definition of eligible seasonal farmworker in section 167 i 3 A of the WIOA relating to an individual being low-income an individual is eligible for migrant and seasonal farmworker programs under section 167 of the WIOA under that definition if in addition to meeting the requirements of clauses i and ii of section 167 i 3 A such individual is a member of a family with a total family income equal to or less than 150 percent of the poverty line. Accordingly ETA has revised the definition of low-income individual above to incorporate this provision. However as noted above this provision is tied to the appropriations language and applies to grant activities funded under Program Year 2021 awards. ETA will subsequently revise its guidance regarding the definition of low-income individual as needed if the same provision is not included in subsequent appropriations. 2 Pursuant to WIOA Section 3 49 the term poverty line as defined by the Office of Management and Budget is revised annually in accordance with Section 673 2 of the Community Services Block Grant Act 42 U.S.C. 9902 2 . The poverty line is updated annually based on most recent data available from the U.S. Census Bureau. The U.S. Department of Labor Employment and Training Administration posts the poverty guidelines and the LLSIL online at https www.dol.gov agencies eta llsil. The U.S. Department of Health and Human Services also posts the poverty guidelines online at https aspe.hhs.gov poverty-guidelines. 6 et seq. 3 Is a foster child on behalf of whom State or local government payments are made or v. Is an individual with a disability whose own income meets the income requirement of clause ii but who is a member of a family whose income does not meet this requirement WIOA Section 3 36 A . F. Family Income and Low-Income Eligibility. For the purposes of determining low- income status as defined under WIOA Section 3 36 A for an individual who resides with their family in a single residence grantees should use family as defined in 20 CFR 675.300 which means two or more persons related by blood marriage or decree of a court who are living in a single residence and are included in one or more of the following categories 1 A married couple and dependent children 2 A parent or guardian and dependent children or 3 A married couple. Note When determining family income NFJP grantees have the discretion to develop policies outline methodologies and select a method to calculate family income. All methods must be aligned with the grantee organization s policies and procedures and grantees should consult with their Federal Project Officers in examining or changing their income determination methodologies. See Section IV of this TEGL and the NFJP Program Guide for additional information. When calculating the family income grantees may use the income of the married couple single parent or guardian as well as other regular contributions for support if appropriate. To determine the family size grantees may use the total number of individuals who fall under the definition of family as defined above. See the NFJP Program Guide to learn more about what counts as income and other regular contributions for support. The NFJP Program Guide is available at https farmworker.workforcegps.org resources 2018 09 20 19 58 NFJP-Program- Guide. Additionally if an individual is not living in a single residence with other family members that individual is not a member of a family for the purpose of income calculations to determine eligibility under NFJP. Additionally pursuant to 20 CFR 685.110 an MSFW youth may be individually eligible or may receive services as a dependent of an eligible MSFW. When an MSFW youth is individually eligible this means their own income and farmwork meets the low-income and farmwork requirements. G. Farmwork means cultivation and tillage of the soil dairying production cultivation growing and harvesting of any agricultural or horticultural commodities. This includes the raising of livestock bees fur-bearing animals or 3 An individual who receives or is eligible to receive free or reduced price lunch. To qualify for free meals through the National School Lunch Program the income of the child s family must not exceed 130 percent of the poverty level. To qualify for reduced-price meals the income of the child s family must not exceed 185 percent of the poverty line. The eligibility guidelines are available at https www.fns.usda.gov cn income-eligibility-guidelines. 7 poultry farming of fish and any practices including any forestry or lumbering operations performed by a farmer or on a farm as an incident to or in conjunction with such farming operations including preparation for market delivery to storage or to market or to carriers for transportation to market. It also includes the handling planting drying packing packaging processing freezing or grading prior to delivery for storage of any agricultural or horticultural commodity in its unmanufactured state See WIOA Final Rule https www.dol.gov agencies eta wioa regulations . Pursuant to WIOA Section 167 i 3 A individuals must have performed labor for wages in occupations and industries within agricultural production and agricultural services for 12 consecutive months out of the 24 months prior to application for the program involved. Note that in some exceptional circumstances grantees may shift the 24-month eligibility determination period so that it precedes a period of unavailability experienced by an individual as described in Section IV of this TEGL. In these circumstances grantees should review the labor performed by such an individual within the modified 24-month eligibility determination period rather than within the 24 months immediately preceding the individual s application to the program. Although the North American Industry Classification System NAICS codes are the primary resource used to help define farmwork ETA recommends that NFJP grantees draw upon multiple factors rather than refer only to the NAICS codes. For information on industry sectors see https www.bls.gov bls naics.htm. IV. Eligibility Determination Procedures. Eligibility Determination Period for Farmworker Status To determine an applicant s farmworker status grantees must use any consecutive 12-month period within the 24-month period immediately preceding the date of application for NFJP by the MSFW applicant. An applicant s eligibility determination shall be valid for 60 days from the date of the initial application. After the initial 60-day period has elapsed if the individual is not an enrolled participant the grantee will update the information to re-certify the applicant. When an applicant was unavailable for work in the period immediately preceding the date of application because he she had been in the armed forces institutionally confined by incarceration or other legal detainment hospitalized or otherwise unavailable due to a documented disability grantees may establish an eligibility determination period during the 24 months immediately preceding the date of such unavailability provided however that such period may not begin more than 48 months prior to the date of application. 8 Eligibility Determination for Low-income Status To determine an applicant s low- income status grantees must calculate income at the time of application. Methods for Calculating Income. MSFWs experience earnings fluctuations throughout the year due to the nature of working in the agriculture industry. Determining whether an individual meets the low- income requirement by gathering source documentation for the past 12 months may be challenging and may distort an individual s financial circumstance at the time of application. NFJP grantees have the discretion to develop policies outline methodologies and select a method that annualizes an individual s income in a way that reflects the financial circumstances of an individual at the time of application. Grantees should document any changes in wages and salaries and document the reason they chose a specific method to annualize an individual s income. All methods must be aligned with the grantee organization s policies and procedures. See NFJP Program Guide for additional information. V. NFJP Enrollment. To be a program participant an individual must complete the following requirements eligibility determination career assessment and receipt of at least 1 of the 5 program elements i.e. career services training services housing assistance services youth services and or certain related assistance services . These individuals will be considered program participants and will be included in either adult or youth performance calculations. Individuals who are enrolled in certain related assistance activities that require significant involvement of grantee staff are also considered participants see 20 CFR 685.400 b . Specifically certain related assistance activities are those that require an eligibility determination and a career assessment as described above and are directly related to education training career and or employment outcomes. These activities may include but are not limited to Solutions to increase graduation rates Remedial and adult-basic education Self-employment and related business or micro-enterprise development or education and Occupational career and technical education. An individual who receives only related assistance services that 1 do not require significant involvement of grantee staff time and 2 do not require a career assessment by grantee staff of an individual s skills education or career objectives including all emergency assistance services will be considered a reportable individual as defined in 20 CFR 677.150 b . Such individuals are not included in performance calculations as program participants. For example the Department does not consider pesticide and worker safety training which neither requires significant involvement of grantee staff time nor career assessments to be the kind of related assistance that requires the individual to be included in the performance calculations. 9 Emergency assistance a form of short-term related assistance may be provided to eligible MSFWs and their dependents as defined in 20 CFR 685.110 to address these farmworker s immediate needs. Emergency assistance may include but is not limited to the provision of necessary items like garments of clothing food and transportation vouchers. When an individual receives emergency assistance only and no other NFJP services an applicant s self-attestation is acceptable as sufficient documentation of eligibility. Under certain circumstances NFJP grantees may provide emergency assistance to H-2A Temporary Agricultural Workers H-2A workers to address an immediate and short- term need. NFJP grantees are expected to leverage available alternative resources and coordinate continuously with State Monitor Advocates Farm Labor Specialists and other community-based partners whenever possible to raise awareness with respect to any underlying issues preventing the H-2A workers from receiving similar benefits or assistance as required by the agricultural employer s certified job order or work contract with the H-2A workers see 20 CFR part 655 Subpart B 20 CFR part 653 and 29 CFR part 501 . The Department s Wage Hour Division WHD has developed a user-friendly H-2A Worker Rights Card for workers and H-2A Worker Rights Poster for employers which summarizes the benefits wages and working conditions to be provided to H-2A and U.S. workers performing the same work for the employer. Electronic versions of the H-2A Worker Rights Card and Poster in English and Spanish can be found on the WHD s web site at https www.dol.gov agencies whd agriculture h2a. In circumstances where an H-2A worker submits a complaint or reports a possible violation of any contractual H-2A labor standard NFJP grantees should refer the H-2A worker to the appropriate office of the State Monitor Advocate SMA who can educate the H-2A worker regarding how to file a formal complaint with the State Workforce Agency SWA Employment Service Complaint System Complaint System . See TEGL 8-17 for additional guidance at https wdr.doleta.gov directives corr doc.cfm docn 6290. The SMA or outreach workers SWA staff will explain the Complaint System to the H-2A worker. If the H- 2A worker wishes to file a complaint the SWA staff will take the complaint in writing and refer to WHD the agency that enforces the contractual obligations under the H-2A program as described at 29 CFR part 501. If the H-2A worker decides not to file a complaint the report of a suspected violation could turn into an apparent violation and may be handled as a complaint as described at 20 CFR 658.419. VI. Data Validation and Performance Reporting Requirements. NFJP grantees are required to have an eligibility determination system that enables the generation of a record supporting eligibility determinations and enrollment decisions including program participant status low-income status etc. To learn about data validation requirements NFJP grantees can review guidance in TEGL 23-19 at https wdr.doleta.gov directives corr doc.cfm DOCN 9155. See Attachment II of TEGL 23-19 Source Documentation for Core Non-Core Programs DOL-only Data Element Validation. The table displays the PIRL data element numbers data element 10 names definitions instructions program specific requirement and source documentation needed to perform data element validation on each data element. Additionally NFJP grantees can review guidance on performance reporting requirements in TEGL 14-18 at https wdr.doleta.gov directives corr doc.cfm DOCN 7611. Note although redetermination is not required under NFJP participants may experience an unexpected interruption that leads to disenrollment. In such circumstances grantees may use PIRL data element 923 Other Reasons for Exit to exclude a participant from performance calculations. Note Code 6 may be used when an individual who was determined to be eligible is later determined not to have met eligibility criteria. Similar to other performance reporting data elements grantees are required to maintain documentation when using PIRL data element 923. Additional ETA performance reporting updates are available at https www.dol.gov agencies eta performance updates. 5. Inquiries. All NFJP Grantees should submit inquiries to their respective Federal Project Officer. 6. References. WIOA Pub. L. 113-128 Title I WIA Pub. L. 105-220 Title I WIOA DOL-Only Final Rule 20 CFR parts 603 651 to 658 675 and 679 to 688 TEGL NO. 23-19 Guidance for Validating Required Performance Data Submitted by Grant Recipients of U.S. Department of Labor DOL Workforce Programs TEGL NO. 14-18 Aligning Performance Accountability Reporting Definitions and Policies Across Workforce Employment and Training Programs Administered by the U.S. Department of Labor DOL TEGL NO. 8-17 Guidance on the Requirement for a Memorandum of Understanding MOU Between State Monitor Advocates SMA and National Farmworker Jobs Program NFJP Grantees TEGL NO. 2-14 Eligibility of Deferred Action for Childhood Arrivals Participants for Workforce Investment Act and Wagner-Peyser Act Programs and TEGL NO. 11-11 Change 1 and Change 2 Selective Service Registration Requirements for Employment and Training Administration Funded Programs. 7. Attachment s . Attachment I Included Income Excluded Income and Examples of Methods to Calculate Income Tool Attachment I to TEGL 18-16 Change 1 I-1 Included Income Excluded Income and Examples of Methods to Calculate Income Tool Use this attachment in conjunction with TEGL 18-16 Change 1. The definition of a low-income individual under the Workforce Innovation and Opportunity Act WIOA Section 3 36 does not exclude unemployment compensation this includes Pandemic Emergency Unemployment Compensation Pandemic Unemployment Assistance and Extended Benefits old-age survivors insurance benefits or child support payments from income calculations as they were previously excluded under the Workforce Investment Act WIA Section 101 25 . ETA used the U.S. Department of Labor s Bureau of Labor Statistics definition of income to develop this tool. 1 This tool aims to increase NFJP grantees understanding of what types of income would count towards the income requirement to qualify for NFJP and provide examples of methods to calculate income. A. Examples of the types of income that could be included when making eligibility determination based on income are outlined in the table below. Included Income Income Earnings before Taxes Wages and salaries 2 Self-employment income Social Security Old-Age Survivors and Disability Insurance private and government retirement Interest dividends rental income and other property income Unemployment and workers compensation and Regular contributions for support alimony and child support Please note the term regular for this source of income. If an individual is a parent and cannot rely on receiving contributions such as child support grantees may consider this when calculating income. Important to Know When gathering information about an individual s income please note that some types of Federal State or local income- based public assistance may automatically qualify someone as low- income. For example under WIOA Section 3 36 A i an individual meets the low-income eligibility when they receive or in the past 6 months has received or is a member of a family that is receiving or in the past 6 months has received assistance through the supplemental nutrition assistance program SNAP established under the Food and Nutrition Act of 2008 7 U.S.C. 2011 et seq. the program of block grants to States for temporary assistance for needy families program TANF under part A of title IV of the Social Security Act 42 U.S.C. 601 et seq. or the supplemental security income SSI program established under 1 https www.bls.gov cex csxgloss.htm 2 https www.bls.gov bls glossary.htm Attachment I to TEGL 18-16 Change 1 I-2 title XVI of the Social Security Act 42 U.S.C. 1381 et seq. or State or local income-based public assistance Additionally per WIOA Section 3 50 the term public assistance means Federal State or local government cash payments for which eligibility is determined by a needs or income test. State or local income-based public assistance payments which includes but is not limited to the following type of assistance Utility Child care Nutrition Housing Note See section 6 of TEGL 18-16 Change 1 for additional information on how public assistance may qualify an individual as low-income. B. Examples of types of income that could be excluded when making eligibility determination based on income are outlined in the table below. When calculating income do not include any allowance earnings or payments stemming from participation in WIOA Title I programs. Per 20 CFR 683.275 d allowances earnings and payments to individuals participating in programs under title I of WIOA are not considered as income for 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 42 U.S.C. 301 et seq. . Excluded Income Volunteer Job Training Payments Allowances earnings and payments to individuals participating in programs under title I of WIOA Any payment to volunteers under Title I VISTA and others and Title II RSVP foster grandparents and others of the Domestic Volunteer Service Act of 1973 Payments to volunteers under Section 8 b 1 B of the Small Business Act SCORE and ACE and Payments and allowances to individuals participating in AmeriCorps to the extent excluded by the National and Community Service Act of 1990. Student Student financial assistance received under Title IV of the Higher Education Act of 1965 including the Pell Grant Supplemental Attachment I to TEGL 18-16 Change 1 I-3 Financial Aid Education Opportunity Grant State Student Incentive Grants National Direct Student Loan PLUS College Work Study and Byrd Honor Scholarship Programs to the extent excluded by the Act and Payments received under the Carl D. Perkins Vocational Education Act as amended by the Carl D. Perkins Vocational and Applied Technology Act Amendments of 1990 P.L. 101-392. Military Service- related Income Any amounts received as military pay or allowances by any person who served on active duty and certain other specified benefits paid while on active duty or paid by the Department of Veterans Affairs VA for vocational rehabilitation disability payments or related VA-funded programs are not to be considered as income in accordance with VA Title 38 U.S.C. 4213 and 20 CFR 683.230. For additional information about assisting Veterans please see Training and Employment Guidance Letter NO. 10-09. All pay and or financial allowances earned while a veteran was on active duty are exempt. Title 38 U.S.C. 4213 also exempts from inclusion in low income calculations any financial benefits received by a covered person under the following Chapters of Title 38 of the U.S. Code 11. Compensation for service-connected disability or death. 13. Dependency and indemnity compensation for service- connected deaths. 30. All-volunteer force educational assistance program. 31. Training and rehabilitation for veterans with service-connected disabilities. 35. Survivors and dependents educational assistance. 36. Administration of educational benefits Also excluded from low income calculations are benefits received under Chapter 106 of Title 10 U.S. Code Educational assistance for members of the selected reserve. Note Pension payments authorized by Title 10 U.S. Code such as those received by military retirees whether or not their retirement was based on disability are not exempt and are to be included in low income calculations. Also not exempt are pension benefits paid under Chapter 15 of Title 38 U.S. Code. Attachment I to TEGL 18-16 Change 1 I-4 Lump sum payments Lump sum payments or large cash settlements are not counted as income since they are not received on a regular basis. These funds may be provided as compensation for a loss that must be replaced such as payment from an insurance company for fire damage to a house. Note When lump sum payments are put into a savings account and the household regularly draws from that account for living expenses the amount withdrawn is counted as income. C. Examples of Methods for Calculating Income NFJP grantees have the flexibility to use different methods for calculating income and should use a method that considers an individual s current income. Methods to annualize income are not limited to but may include the following approaches below. When annualizing an individual s income grantees must also include other sources of income that are listed above under section A of this tool. The examples below demonstrate three different ways to calculate an individual s wages. The methods only reflect income calculations to determine an individual s eligibility for NFJP. Salary Method Use this method for individuals who have pay stubs or other source documentation covering the most recent 6 months of their family s wages. Grantees should use this method when there is little or no variation in the wages or salaries for any of the pay stubs submitted for income verification. To calculate an individual s annual income based on wages or salaries first multiply the gross 3 pay listed on the paystub or source documentation by the number of pay periods in the six-month determination period. Next multiply the result by two to determine the annual wages or salaries. Example Five pay stubs are provided indicating gross wages of 772 each. The pay frequency is biweekly 13 times in six months . 772 13 10 036 2 20 072. Average Pay Method Use this method for individuals who have six monthly bank statements or other source documentation which show variation in the individual s wages. These variations may result for several reasons including overtime or work for a different employer. In circumstances where variation exists grantees can determine an individual s average gross wages by adding the total gross wages and dividing the result by the number of monthly bank statements. Example an individual shows bank statements from the most recent 6 months. The bank statements for 6 months show the following monthly income 770 290 490 490 490 and 490. The total income for the individual for 6 months is 3 020. To calculate the monthly average divide the result by 6. Then to calculate the individual s annual income from wages multiply the month average 503 by 12 to calculate annual income 503 12 6 040 . 3 Gross usually refers to total earnings before any deductions such as tax withholding including where applicable overtime payments shift differentials production bonuses cost-of-living allowances commissions etc. https www.bls.gov bls glossary.htm earnings Attachment I to TEGL 18-16 Change 1 I-5 Intermittent Work Method Use this method for individuals who have irregular income or are self-employed. In circumstances where the individual does not have steady work the grantee should ask the individual to supply as many pay stubs or other source documentation as possible. To determine average gross wages use the individual s income from the prior month. When using the Intermittent Work Method the grantee must explain missing pay stubs non-work periods etc. and selected method in their case notes. Grantees should use any information that an individual submits to calculate annual income. NFJP grantees have the discretion to develop policies outline methodologies and select a method that gives a result that reflects the financial circumstances of applicants at the time of application. For example if the Salary Method provides a more accurate reflection of an individual s current income use the Salary Method to calculate annual income. If using the Intermittent Work Method with source documentation for the prior month s income provides a more accurate reflection of an individual s current income this method may be used as a basis for calculating annual income. ETA recommends NFJP grantees to work with their AJC and other local or state agencies that provide income-based public assistance to learn about other methods to calculate annual income for example energy assistance medical assistance child care assistance or community development block grant assistance .