DIRECTIVE	:	UIS INFORMATION BULLETIN NO. 02-96
TO	:	ALL REGIONAL ADMINISTRATORS
FROM	:	MARY ANN WYRSCH Director Unemployment Insurance Service
SUBJECT	:	Benefit Payment Control (BPC) -- New Projects Undertaken in Fiscal Year (FY) 1996

The Unemployment Insurance Service (UIS) National Office has entered into cooperative agreements with State Employment Security Agencies (SESAs) to perform projects in three areas of BPC. All are scheduled to begin in FY 1996.

1. Overpayment Detection and Investigation. The Utah Department of Employment Security will begin a project designed to assist SESAs improve methods for the detection and investigation of benefit overpayments. The project requires the analysis of investigative methods currently employed by SESAs for the purpose of identifying exemplary programs that can be recommended to other SESAs. Training needs for detection and investigation of overpayments will be identified, and a comprehensive training package will be developed and offered to all SESAs. Additionally, resource materials will be provided to the National Office for distribution to all SESAs.

2. Overpayment Recovery. The California Employment Development Department has been awarded a project to provide technical assistance to SESAs to enhance their capabilities in the recovery of benefit overpayments. Automated collection software packages and systems will be evaluated, and recommendations will be made for consideration by other SESAs. Training on recovery methods will be developed and made available to all SESAs. Also, ET Handbook No. 375, Resource Handbook Overpayment Recovery, will be updated and distributed to all SESAs.

3. Field Test of Revised Performance Measures. The existing performance measures for BPC consist of collection rates for fraud overpayments and nonfraud overpayments. Additional indicators have been proposed to supplement the existing ones. These measures will be field tested by three SESAs -- West Virginia, Utah, and California. These SESAs will determine the feasibility of collecting the data and will evaluate the usefulness of the data.

   The additional proposed measures include:

   • The number of overpayments established during the period as a percentage of the number of first payments made during the period.

   • The dollar amounts of overpayments established during the period as a percentage of benefits paid during the period.

   • The amount of overpayments collected by cash and offset during the period as a percentage of the balance of overpayments outstanding at the beginning of the period.

   • The amount of overpayments ruled uncollectible during the period as a percentage of the balance of overpayments outstanding at the beginning of the period.

   • The amount of overpayments recovered (cash and offset) plus the amount ruled uncollectible (waivers and write-offs) during the period as a percentage of the balance of overpayments outstanding at the beginning of the period.

   • The number of overpayments recovered plus overpayments ruled uncollectible during the period as a percentage of overpayment cases outstanding at the beginning of the period.

   • The number of overpayment cases closed (recovered plus ruled uncollectible)during the period as a percentage of the number of overpayments established during the period.

   • Recovery time lapse of overpayment cases closed during the report period-- from the date the overpayment was established to the date the case was closed.

   • Aging of overpayment cases outstanding -- from the date the overpayment was established to the end of the period.

   • Aging of overpaid dollars outstanding -- from the date the overpayment was established to the end of the period.

   For the first two projects -- (1) Overpayment Detection and Investigation and (2) Overpayment Recovery -- the host SESAs will convene "advisory workgroups" of technical partners to advise and assist them by participating in refining the projects' objectives, developing the workplans, contributing staff time to the tasks, and reviewing the products. (See Attachment: Concept for Advisory Workgroup.) These advisory workgroups will consist of staff from other SESAs and Federal staff who are knowledgeable in the program areas. This concept has been employed to encourage input from a broad spectrum of UI stakeholders in order to maximize the value and utility of the finished products.

   For further information, please call Bob Whiting on (202) 219-5340.

    

    

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   ATTACHMENT

   BENEFIT PAYMENT CONTROL PROJECTS
   CONCEPT FOR ADVISORY WORKGROUP

   Level One

   Member agrees to review plans and deliverables produced by the Project SESA and to provide comments. (Long distance participation feasible, i.e. no travel.)

   Level Two

   Member agrees to attend meetings of Advisory Workgroup to propose tasks to be undertaken in Project and provide oversight. (Cost of travel borne by member State.)

   Level Three

   Member agrees to provide active, technical input in carrying out tasks undertaken, e.g., work with Project SESA staff to write resource materials, deliver training, etc. (Cost of travel borne by member State.)