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Article 9 Child Care Subsidy
Posted On: Oct 29, 2013

Article 9

Child Care Subsidy

The parties agree that the Department will maintain a Child Care Subsidy Program

available to bargaining unit employees as follows:

a. The Department of Labor Child Care Subsidy Program, in accordance with

Public Law 107-67, is intended to foster a quality work place for employees

through the use of licensed child care by subsidizing costs for lower family

income employees while at the same time improving recruitment efforts,

retention, and morale while reducing absenteeism. The Program will

provide assistance to lower income working families in their efforts to obtain

quality, licensed day care for dependent children through age 13 and

disabled children through age 18. Qualified participants must utilize

licensed child care, meet income level definitions, and maintain a full-time

or part-time permanent position status.

b. This Agreement is made pursuant to the Government-wide regulations of

the Office of Personnel Management. Appropriated funds, otherwise

available for salaries, will be utilized to fund the Program.

The subsidy payment plan is as follows:

Total Percentage of Maximum Monthly

Family Income Actual Child Care

Costs

Subsidy (per child)

<$40,580 75% $700

$40,581-$49,999 60% $600

$50,000-$59,999 50% $575

$60,000-$69,999 40% $550

$70,000-$79,999 35% $450

c. Any annual subsidy received in excess of $5,000 ($2,500 in the case of a

married individual filing a separate return) must be included as part of gross

income for tax purposes, in accordance with 26 USC § 129.

d. The Department may reduce or suspend the child care subsidy when it

deems funding to be insufficient.


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