The Federal Reserve Bank of Atlanta designed the Career Ladder Identifier and Financial Forecaster (CLIFF) Tools to help workers understand the potential public assistance losses they face when their earnings increase. Says the Atlanta Fed: “For some workers, career advancement and higher pay can trigger a loss of means-tested public assistance. Workers may struggle to plan for that loss due to the complexity of public assistance rules and a lack of projections about their income and expenses.” The tools aim to help individuals plan for potential losses as they make decisions to improve their career pathway.
The Atlanta Fed studied the pilot implementation of these tools with several organizations over the course of two years to better understand tool functionality and identify challenges organizations face when using benefit cliff calculators like CLIFF. Some key findings from the Atlanta Fed’s pilot study include:
- CLIFF is most useful for individuals who are financially stable and ready to plan for the longer-term, rather than individuals who in a financial crisis, according to pilot participants.
- Challenges with integrating CLIFF including staffing constraints and coaches not having sufficient time to use CLIFF with clients.
- Coaches could benefit from training on how to discuss public assistance loss with clients, particularly when losses presented severe financial challenges.
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