We are happy to announce that Dean Manning has approved multiple changes to the Low Income Protection Plan (LIPP). The following will take effect with the January to June 2019 award period:
- LIPP coverage for a variety of leaves or periods of temporary unemployment will be expanded.
- The amount of transition time available to graduates over their entire time in LIPP will be tripled to 24 weeks from 8 weeks. Graduates entering LIPP will have 12 weeks of transition time, and will earn an additional 12 weeks upon beginning their fifth year in the program.
- LIPP assistance during a parental leave of up to 6 months will be awarded regardless of whether the leave is approved by an employer or the participant is returning to the same position or employer after the leave.
- LIPP assistance will be available for up to 3 months during a doctor-approved medical or disability leave by the participant. This may be combined with standard transition time to cover a leave of up to 6 months.
- To qualify for LIPP assistance during any type of leave or transition, a graduate must work in a job that qualifies for a LIPP benefit immediately before and after the leave or transition. For all such leaves and transitions, the LIPP assistance provided during the leave will be calculated using the average of the two incomes surrounding the leave or transition, rather than the higher of the two incomes.
- The annual Dependent Care Allowance will be increased to $8,000 per child from the current allowance of $6,000 for the first child and $3,600 for each additional child.
- The allowance for child care expenses will be increased to cover actual documented child care expenses of up to $20,000 per child, from the current allowance of 10% of total family income per child. For current LIPP participants with total family income exceeding $200,000, the existing 10% allowance per child will still apply.
- The LIPP Participant Contribution Scale will be increased based on the increase in the Consumer Price Index. The new floor under which a participant will contribute $0 toward eligible loan payments will increase to $48,000 from $47,000, and the rest of the salary scale will be adjusted accordingly.
In addition, Dean Manning has approved the following change to LIPP to take effect immediately:
- Repayment of LIPP Clerkship Loans by participants who do not continue in a job that qualifies for a LIPP benefit following a clerkship will be based on the amount of income (including bonus pay) earned in the job immediately following the clerkship. The amount repaid will be the difference between the documented amount of income (including bonus pay) in the ineligible position and the highest income at which the participant would be LIPP eligible, or the full amount of any outstanding Clerkship Loan(s), whichever is lower. This policy will apply to any Clerkship Loan repayment required after August 13, 2018.