09-SubsistencePaymentInformation.pdf

SUBSISTENCE PAYMENT INFORMATION ATTACHMENT 8

To promote financial responsibility, the BOP requires offenders to make weekly subsistence payments to the contractor. The contractor shall collect 25 percent of each employed offenders gross income, calculated for a week, not to exceed the total dollar amount of the contractor’s daily per diem rate totaled for one week.

For example, if an offender's gross pay is $100 for one week, 25 percent would be $25. The contractor must consider the contract's per-diem rate totaled for the week to determine the dollar amount which can be collected as subsistence. In this example the contract's daily per-diem rate is $3. Multiplying $3 times seven (days per week) yields $21 dollars. This is the dollar amount that can be collected as subsistence by the contractor. Even though $25 is 25 percent of the offender's weekly gross pay, only $21 can be collected because of the contract's per-diem rate.

If an offender collects a pay check at other times such as bi-weekly or monthly, the offender must still make weekly subsistence payments to the contractor. The contractor shall document all exchanges of monies between offenders and staff.

The contractor shall always round down all payments to the nearest dollar amount.

Partial weeks of Residential Reentry Center (RRC) residency are prorated.

For Example: If an offender earns $8.50 an hour and works a forty-hour work week and earns a weekly gross salary of $340, the offender normally owes 25 percent of $340, or $85 in subsistence for the week. However if the same offender only resides in the RRC for three days, then the offender must pay a portion of the $85. In this case, the contractor divides 7 (representing a 7 day week) into $85. Rounding down, the result is $12 which is the offender's prorated daily amount.

Since the contractor will collect for 3 days, the offender owes $36 (3 days X $12 = $36). This still cannot exceed the contract's per-diem rate totaled for one week.

NOTE: Prorated amounts are applied either during the arrival or departure week, no other time. The week begins on Monday. Pass, furlough or home confinement does not release the offender from subsistence responsibilities.

The last week's subsistence may be collected in advance. An offender who fails to pay subsistence payments is subject to disciplinary action, including termination from the program.

Unless otherwise indicated by the Court, BOP or USPO, all USPO cases shall pay subsistence.

The contractor is responsible for collecting the full subsistence amount due. Contractors shall reduce the monthly billing to the BOP by the amount collected in subsistence and indicate this on the bill.

The contractor shall provide the offender with receipts for subsistence payments. The receipt shall indicate the amount collected, gross income, and time period covered. The contractor shall provide a collection record with every monthly bill. Copies of all pay stubs and collection receipts shall be kept in the offender's file.

Offenders who have other means of financial support, e.g., Veteran's Administration (VA) benefits, worker's compensation, retirement income, or Social Security shall contribute an amount determined by the contractor and approved by the CCM. The amount should be approximately 25 percent of their determined weekly income.

In cases of extreme hardship, the contractor may request the CCM to waive or modify subsistence payments. This is on a case-by-case basis and will only be considered when the contractor supports a waiver. The contractor will consider the offender's debts, assets, employment status and spending history before submitting a written request to the CCM. The contractor must consider that subsistence is analogous to rent or a mortgage payment. The contractor shall consider that an ability to maintain residency is a fundamental social skill essential to the offender's future success in the community. The contractor shall also consider that the offender's future success in the community is a basic program objective of RRC residency. Offenders are expected and should be able to meet this basic financial obligation while participating in the RRC program.

The contractor shall document:

! Wages and salaries, ! Number of hours worked, ! Savings and debts, ! Original plan to manage money and subsequent changes, ! Amount and type of deductions as indicated in the plan, and ! Amount of subsistence collected.

The contractor shall give an offender a receipt for any contractor collected funds. The contractor shall develop and use an offender subsistence agreement form which communicates the offender’s obligation and responsibility to pay subsistence and other financial obligations outlined in the SOW.

NOTE: The CCM is authorized to modify the subsistence payment schedule and amount.