State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 1 of 10
Cost of Living
Adjustment Procedures
Section
1700
1700 Cost of Living Adjustment Procedures
A. Authority
New Jersey Court Rules: R. 5:6B
B. Overview
R. 5:6B requires that all child support orders shall be adjusted every two
years to reflect changes in the cost of living. A cost of living adjustment
(COLA) is an automatic adjustment of a child support order that is
enforced under Title IV-D. The objectives of the COLA are to ensure the
adequacy of child support in future years and to reduce the number of
modification applications filed throughout the duration of the support. The
COLA is based on the average monthly change in the Consumer Price
Index (CPI) for the New Jersey metro area (a derivation of the New York
and Pennsylvania CPI). A COLA is different from a child support
modification order.
C. Selection Criteria
For a COLA to occur, the following conditions must exist:
1. The case must be an open case with a charging child support
obligation;
2. The New Jersey Kids Deserve Support (NJKiDS) system date is
less than or equal to the next COLA date, recorded with support
order details, less 45 calendar days;
3. New Jersey has continuing, exclusive jurisdiction (CEJ);
4. The case is not marked as exempt from COLA; and
5. An open COLA activity chain does not exist on the Enforcement
Processes/CPRO page.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 2 of 10
Cost of Living
Adjustment Procedures
Section
1700
D. COLA Chain of Notification and COLA Calculation
1. NJKiDS selects all cases eligible for a COLA and automatically
calculates the amount of the proposed adjustment.
2. The Notice of Cost of Living Adjustment (CS150) is generated via a
weekly batch process 45 days prior to the next COLA date.
3. The CS150 informs the parties that their case is scheduled to be
adjusted and that a COLA may be applied. The CS150 contains
the date the COLA will occur, the amount and frequency of
payment of the current order, the CPI rate applied to the current
order, and the amount and frequency of the adjusted order.
4. The CS150 also informs the parties of their right to contest the
COLA within 30 calendar days.
5. NJKiDS automatically updates the COLA record with the proposed
order and proposed effective date (if not contested). These fields,
along with the COLA date and the last COLA date, can be reviewed
on the Court Order/SORD page in NJKiDS.
6. NJKiDS has been programmed to round COLA increases to the
nearest dollar. Amounts of 50 cents or more are rounded up to the
nearest dollar; 49 cents or less are rounded down to the nearest
dollar. In those cases, where the total increase in obligation
amount is less than $1.00 ($.01 to $.99), the amount of the
increase is $1.00.
E. Uncontested COLA
1. Thirty-five days after the CS150 is generated, COLA cases in a
pending or resolved status will be automatically updated with the
new child support amount and with the next effective date as
calculated by NJKiDS (COLA date plus 2 years).
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 3 of 10
Cost of Living
Adjustment Procedures
Section
1700
2. On the effective date, without further action from the Probation
Child Support Enforcement (PCSE) Unit, NJKiDS will automatically
generate a Civil Action Order Cost of Living Adjustment (CS154)
with the updated obligation amount. In uncontested cases, the
signature of the Family Division Presiding Judge of the vicinage will
automatic be affixed to orders. Income withholding notices
automatically generate reflecting the change in the order.
Note: If a child support modification order is entered while the
COLA chain is pending, NJKiDS will cancel the COLA and
set a new COLA date two years in the future from the date of
the modification order.
F. Contested COLA
1. A party is required to file a written notice with the PCSE Unit, that
they are contesting the COLA, within 30 calendar days of the date
of the CS150. Oral contests, whether by telephone, or in person,
are not acceptable.
2. A party may request an administrative review of a COLA if one or
more of the following criteria exist:
a. The person contesting is not the Non-Custodial Parent
(NCP)/obligor or Custodial Parent (CP)/obligee identified in
the CS150 (mistaken identity);
b. The amount of the child support obligation and/or arrears
indicated in the CS150 is incorrect;
c. The child support order indicates that the case is exempt
from the COLA process and/or contains a provision for an
alternative form of periodic review; and/or
Note: PCSE staff should review the case order history and
update NJKiDS, if appropriate.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 4 of 10
Cost of Living
Adjustment Procedures
Section
1700
d. The NCP’s/obligor’s income did not increase at a rate that is
at least equal to the amount of the CPI calculation.
3. The written contest must contain the following documentation:
a. Mistaken Identity a photocopy of identification containing
date of birth and social security number.
b. Incorrect Child Support Amount a copy of a court order,
showing the correct amount, signed by a judge. PCSE staff
must then verify it is the most current court order.
c. Exemption from COLA or Alternative COLA Schedule a
copy of a court order that stipulates exemption or an
alternative COLA schedule. PCSE staff must verify the most
current order.
d. NCP’s/Obligor’s Income Unchanged or Increase is Less
Than CPI Rate tax returns, W-2s, employer 1099s, award
letters showing Public Assistance, Social Security, or other
public entitlements. The financial information should cover
the three-year period immediately preceding the COLA
contest.
Note: Changes to the CP’s/obligee’s income are irrelevant
for COLA administrative review purposes.
4. When a written contest is received but the documentation is
insufficient, the PCSE Unit selects “Additional Information Needed”
on the COLA chain, which generates the Notice of Additional
Information Needed for COLA (CS596). The chain is increased 15
days so the NCP/obligor may provide the necessary proof
supporting their contest. If additional time is needed, PCSE staff
must continue to select this option in the chain to prevent the chain
from automatically completing. See the COLA Worksheet Section
G below.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 5 of 10
Cost of Living
Adjustment Procedures
Section
1700
5. If the written contest does not meet the basic criteria for exclusion,
PSCE staff shall deny the request for review, generate and send
the Notice of Determination of COLA Administrative Review
(CS152) to the parties, and thereafter the COLA is applied.
6. If a change in circumstances is the sole basis of a challenge to a
COLA, the COLA contest should be denied. The parties should be
advised of their right to file a motion/application with the Family
Division in the county of venue.
G. Administrative Review Process
1. When a written contest meets the accepted criteria and is received
with the proper supporting documentation, the designated PCSE
staff shall conduct an administrative review of the case as it relates
only to the application of COLA. PCSE staff must complete the
administrative review process within 20 days of receipt of the COLA
contest. The administrative review process can result in only one
of the following determinations:
a. COLA will be applied with the effective date contained in the
CS150. These cases will be updated with the new obligation
effective date. Upon completion of the administrative review,
the CS152 is generated and sent to the parties. Thereafter,
upon the COLA effective date, the CS154 generates and is
sent to the parties.
1. The CS152 informs the parties of results of the
administrative review and their right to contest the
determination.
2. If they wish to contest the determination, they must
submit a request to contest, in writing, to PCSE within
10 days from the date of the CS152.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 6 of 10
Cost of Living
Adjustment Procedures
Section
1700
b. COLA will not be applied. This is the appropriate
determination if the COLA contest is successful. These
cases will not be updated, but they will receive a new COLA
date. The CS152 is generated and sent to the parties.
c. Schedule the case before a Child Support Hearing Officer
(CSHO) for further review. This is the appropriate
determination if PCSE is unable to determine if the COLA
should be applied based on the contest. In this event, PCSE
staff selects “Not Resolved Administratively Schedule
Hearing” in the COLA chain and a formal hearing will be
scheduled. These cases are not to be updated with a new
obligation amount, until CSHO review. PCSE staff must
generate a COLA Worksheet for the hearing.
2. The COLA Worksheet
a. The COLA Worksheet generates automatically once a case
is marked contested in NJKiDS. Prior to advancing to the
next step in the chain, a copy of the COLA Worksheet must
be printed, otherwise the calculations automatically get
deleted. A copy will be made part of the PCSE file and
additional copies may be made for court, if needed.
b. PCSE staff enters the following fields as prompted:
1. CPI for the month as it appears on the CS150 (in
decimal format, for example for 3.1% enter .031);
2. The most recent tax year supplied by the NCP/obligor
(the prior 2 years will automatically show once the
current year is entered); and
3. Adjusted Gross Income (AGI) for two years.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 7 of 10
Cost of Living
Adjustment Procedures
Section
1700
c. COLA Assumed Income Change is calculated by NJKiDS
showing the highest dollar increase allowable for the percent
CPI.
d. Actual Income Change The Worksheet calculates the
difference plus or minus from the two tax years under
review.
e. Adjusted Order fills in automatically. It will say YES
(COLA goes through) or NO (no COLA for this cycle).
H. Scheduled Hearing to Record Hearing Officer’s Recommendation at
COLA Hearing
1. When PCSE staff concludes that a determination cannot be made
based upon the information provided, or the CP/obligee or
NCP/obligor desires to contest the determination of the
administrative review, the case shall be scheduled before a CSHO
or judge for further review.
2. The case should be placed on the next available enforcement
calendar in accordance with standard scheduling and noticing
procedures.
3. The CSHO or judge shall conduct a hearing and make a
determination only as to whether a COLA should or should not be
applied. If either party disagrees with the recommendation of the
CSHO, he or she must advise the CSHO before leaving the hearing
that they wish to contest the recommendation to a Superior Court
Judge.
Note: In limited circumstances, when the CSHO is unable to hear
the COLA contest, they are scheduled before a judge.
4. Upon completion of the hearing, NJKiDS is updated and a new
COLA date is automatically entered by the system.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 8 of 10
Cost of Living
Adjustment Procedures
Section
1700
Note: Incomplete contest materials and communications with the
parties should be documented on the Create Note to
File/NOTE page.
I. Missed COLAs and Retroactive Modifications
1. Missed COLAs
If the case has not been coded correctly for a COLA to initiate or
there was no address for the parties, the COLA may have to be
initiated manually by PCSE staff. PCSE staff shall open the COLA
chain and enter the date the COLA was missed on the COLA
Worksheet. Thereafter, the COLA process shall resume.
2. Retroactive Orders
If a retroactive order is entered on the Obligations by Case/OWIZ
page, the COLA dates will be updated based on the new effective
date of the order. This will cause the system to initiate a missed
COLA chain. If multiple COLAs have been missed, the system will
process the oldest COLA first. Once that COLA has been
processed, the system will automatically initiate the next COLA that
has been missed.
J. Uniform Interstate Family Support Act
When a new COLA order has been produced on an intergovernmental
case, PSCE staff will get an action alert/task to register the new COLA
order with the foreign jurisdiction.
K. How to Change a COLA Date
1. In order to change a last COLA date or a next COLA date, PCSE
staff must first temporarily exempt the case from the COLA remedy.
Navigate to the Enforcement Processes/CPRO page and select the
yellow exempt button for COLA.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 9 of 10
Cost of Living
Adjustment Procedures
Section
1700
2. In the reason field, select “AP Alternate Periodic Adjust” and in
the to date field, enter today’s date. Once updated, a dialog box
will appear to enter notes accordingly.
3. Navigate to the Correct Existing Court Order/SORD page and
select “Yes” in the dialog box.
4. All required fields should be pre-filled; however, if any of the
required fields are not pre-filled enter the following selections:
a. Ordered by field “D – Default”;
b. Order type field “A – Administrative”;
c. Judge field enter the designated judge who signs COLA
orders;
d. Controlling order field “P – Presumed”;
e. Check the box “Guidelines Followed”; and
f. Enter the new next COLA date. If necessary, the last COLA
date can be changed.
Note: The new next COLA date that is entered should be on
a charge day.
5. Once modified, the COLA exemption that was applied to the case
will automatically expire the following day and the case will be
available for batch selection on the next COLA date.
State of New Jersey
Administrative Office of the Courts
Probation Child Support
Enforcement Operations
Manual
Volume
A
Revised:
07/13/20
Page 10 of 10
Cost of Living
Adjustment Procedures
Section
1700
Cost of Living Adjustment Procedures List of Associated NJKiDS Forms
NJKiDS CS
Number:
NJKiDS Form Title:
CS150
Notice of Cost of Living Adjustment
CS154
Civil Action Order Cost of Living Adjustment
CS596
Notice of Additional Information Needed for
COLA
CS152
Notice of Determination of COLA
Administrative Review