DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 47-01
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	GRACE A. KILBANE Administrator Office of Workforce Security
SUBJECT	:	Electronic Exchange of Wage and Separation Information for the Unemployment Compensation for Federal Employees (UCFE) and the Unemployment Compensation for Ex-servicemembers (UCX) Programs

1. Purpose. To transmit to the State Employment Security Agencies (SESAs) the system and procedural requirements for the electronic exchange of wage and separation information for the UCFE and UCX programs, and the Claims Control system for both programs. To also advise SESAs that model code for the UCFE Interstate Connection (ICON) application is also being issued under separate cover by Lockheed Martin.

2. Reference. ET Handbook No. 384, Unemployment Compensation for Ex-Servicemembers; ET Handbook No. 391, UCFE Instructions for State Agencies.

3. Background. To better integrate federal programs with states' claims processing systems, procedures for obtaining wage and separation information for both the UCX and UCFE programs have been automated to the extent possible. For the UCFE program, Lockheed Martin has developed an ICON application that states will use to generate electronic and/or hardcopy requests to federal agencies, as appropriate, and to receive electronic responses. For the UCX program, the electronic record of information from the DD Form 214/215 maintained by the Louisiana Claims Control Center (LCCC) has been changed to allow states, after necessary in-house programming, to electronically obtain UCX wage and separation information. For the UCX and UCFE programs, the Claim Control File system maintained by the LCCC has been redesigned to support a more effective exchange of information and for integrity purposes.

   The attached Guide and Directory of Federal Agencies' Index has been developed by the Employment and Training Administration (ETA) with input and assistance from staff at the LCCC, Lockheed Martin and some of the pilot states that participated in testing the new applications and procedures. This Guide explains the revised UCFE and UCX claims processing and control file procedures.

   The Frick Company, which represents approximately 30 federal agencies, is operational on the new UCFE system and is currently exchanging production data (wage and separation information) with the State of Georgia. The U.S. Postal Service (USPS) is expected to begin participating by the beginning of calendar year 2002. Discussions with four additional large federal agencies indicate their willingness to participate in the future. These agencies together with the USPS and the agencies represented by the Frick Company represent over 80 percent of the UCFE workload.

   The Department has also been in discussion with the Department of Defense (DOD) concerning the new procedures for the UCX program and the need for prompt delivery of the Department's copy of each DD Forms 214 and 215 to the LCCC. Currently, a high percentage of the DD Forms 214 are not on file at the LCCC when individuals file initial UCX claims immediately upon discharge. The new system notifies the state when the DD Form 214 is not on file so that the state can use the claimant's copy to make a timely determination. The DOD has indicated that it is in the process of automating the DD Form 214, as well as the DD Form 215, in a manner that will allow the LCCC to obtain needed UCX information electronically in the future.

4. UCFE Changes. The key UCFE procedural changes and automation improvements include the following:

   a)  the development of an ICON UCFE application that supports the exchange of wage and separation information between the state agency and federal employers using electronic versions of the ETA 931, ETA 931A and ETA 934;

   b)  a revision of the paper Forms ETA 931, ETA 931A and ETA 934 to represent the same data elements on the electronic forms;

   c)  the inclusion of logic in the ICON UCFE application that determines when a hard copy form is necessary, thereby, eliminating the need for claims takers to handle the data entry of claims differently to generate electronic versus hard copy forms (not all federal agencies will be able to electronically exchange information);

   d)  an automated Directory of Federal Agencies as a feature of the UCFE application; and

   e)  an address data entry capability to allow states to enter an address that is not in the electronic directory for use in mailing a form. This address will not update the Directory. It will instead cause Lockheed Martin to send a notice to the National Office for follow-up with the federal agency. The address will only be added to the directory upon verification.

5. UCX Changes. The key UCX procedural changes include the following:

   a)  the Department's copy of the DD Form 214, maintained at the LCCC, is now the official source of wage and separation information for use in establishing UCX entitlement and eligibility;

   b)  the LCCC will calculate the claimant's UCX employment and wages and provide the information to state agencies; and

   c)  the State is authorized to determine UCX eligibility under an affidavit process, using the claimant's copy four (4) of his/her DD Form 214, upon receipt of a notice from the LCCC that there is no DD Form 214 on file. This procedure will eliminate any potential delay in the determination of UCX eligibility pending receipt of the Department's copy of the DD Form 214.

6. UCFE/UCX Control File. A primary feature of the new system at the LCCC is the change to the Claims Control System that serves both the UCFE and UCX programs. The key features of the new system are as follows:

   a)  the Claims Control System has been changed to maintain a control record only when an intrastate or interstate benefit year is established that causes a wage assignment;

   b)  there will be two types of control records, one that shows a benefit year on file in the state and one that shows a wage assignment only in a state; and

   c)  the format of the new control record will contain sufficient information for use by states to determine if there is conflicting prior wage assignment or an existing benefit year.

7. State Responsibilities. It is each state agency's responsibility to take the actions necessary to implement these new UCFE and UCX procedures in the State. In order for the system to operate optimally, it is necessary for the state agency to fully interface the new applications with its wage and benefit systems. To that end, it will be necessary to designate both data processing staff to install and/or develop the necessary code to support the procedures, and program staff to develop internal operating procedures, train staff and monitor the testing of the new procedures.

   Model code for the ICON UCFE application was being distributed by Lockheed Martin under separate cover during the week of August 13. IBM and non-IBM states will follow their normal implementation procedures that apply to all ICON applications. It will be helpful if the data processing staff handling the installation and interfacing of the UCFE application have familiarity with the ICON since this is an ICON application. No code is being provided for the UCX changes. States will have to individually develop software for the UCX changes based on the procedural descriptions and record formats that are provided in the attached Guide.

   Implementation of the changes to the UCFE procedures requires the implementation of both the ICON UCFE application and the UCFE claims control feature with the LCCC. The new Claims Control System for UCFE claims is expected to be implemented before or simultaneously with the ICON UCFE application. Therefore, it is suggested that states program and implement the new procedures for communicating with the LCCC first.

   The sooner that all states implement the new procedures for communicating requests for UCX wage and separation information and the new Claim Control System for UCFE and UCX, the shorter the transition period will be for receiving LCCC response records from the old "inquiry" Control System and the new Claims Control System.

8. Action Required. SESAs are requested to:

   1. provide copies of the attachments to appropriate personnel including data processing and UCFE/UCX program/operations staff;

   2. develop a schedule for the programming, installation, and testing of the new UCFE and UCX electronic data exchange procedures; and

   3. plan to be fully operational on the new UCFE and UCX systems no later than December 31, 2002.

9. Inquiries. Please direct all program related inquiries to the appropriate Regional Office. Technical questions about the ICON UCFE application may be directed to Martha Hazelrigg (Lockheed Martin) at (407) 306-7228. Technical questions about the UCX or claim control records requirements may be directed to Rezzie Meyer (LCCC) at 1-800-535-8100.

10. Attachments. 

    1. - STATE IMPLEMENTATION GUIDE - Changes to the UCFE and UCX Programs

    2. - Directory of Federal Agencies - Index