9500.1658 STANDARDS USED BY COMMISSIONER TO DETERMINE WHETHER TO CONSENT TO A PROPOSED LUMP-SUM SETTLEMENT.


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Subpart 1.

Standards.

The commissioner shall consent to a proposed lump-sum settlement only if the conditions of subparts 1a to 6 are met.


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Subp. 1a.

Parties.

Under Minnesota Statutes, section 257.60, when the child is a minor, the child and the commissioner must be made parties to the action. The court must appoint a general guardian or a guardian ad litem to represent the child.


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Subp. 2.

Admission of paternity.

The alleged father must admit paternity and either waive blood tests or the results of blood tests indicate a likelihood of more than 92 percent that the alleged father is the biological father of the child.


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Subp. 3.

Comparison of proposed lump-sum settlement to present value of periodic payments.

The proposed lump-sum settlement must be equal to or greater than the present value of periodic payments.


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Subp. 4.

Liability for past support and costs.

A provision must be made for a partial or full reimbursement consisting of the alleged father's liability for past support and costs. The alleged father's liability for past support and costs includes:

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A.

all or a proportion of the amount of assistance furnished the child during the two years immediately preceding the start of the paternity action under Minnesota Statutes, section 257.66, subdivision 4;


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B.

expenses of the mother's pregnancy and confinement under Minnesota Statutes, section 257.66, subdivision 3; and


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C.

all or a proportion of costs and fees detailed under Minnesota Statutes, section 257.69, subdivision 2.
If a reimbursement is to be made through payments to the local IV-D agency, provisions for income withholding shall be included in the proposed lump-sum settlement agreement under Minnesota Statutes, section 518A.53.



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Subp. 5.

Protection over lump-sum settlement amount.

A plan to invest the lump-sum settlement to meet the child's future needs and to prevent rapid depletion of the lump-sum settlement must be made part of the lump-sum settlement. The plan to invest the lump-sum settlement must include:

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A.

an agreement to deposit the lump-sum settlement amount in an interest bearing account with a rate of interest based on a United States Treasury obligation that matures on the date of the child's 18th birthday;


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B.

provisions for making periodic payments to the child until the child is 18 years of age;


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C.

provisions for making the periodic payments under item B to the public agency, if the child receives public assistance or becomes eligible to receive public assistance and rights to support are assigned under Minnesota Statutes, section 256.741;


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D.

the name of the depository that will hold and disburse the lump-sum settlement under this subpart;


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E.

the name of the person or agency designated to make decisions on managing the lump-sum settlement account; and


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F.

the amounts charged by the depository for the costs of administering the lump-sum settlement account.



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Subp. 6.

Medical benefits.

The lump-sum settlement must provide for maintenance of health and dental insurance for the child under Minnesota Statutes, section 518A.41.