Attachment D to UIPL 33-99

Attachment D

Automated call processing An automated telephone system that routes incoming calls to designated staff.

Automated voice response system An automated touch-tone telephone system that provides information to individuals, eliminating the need for an information line staffed with personnel.

Bankruptcy A proceeding filed by a debtor to seek relief from a debt(s) under the provisions of Title 11 of the United States Code.

Bankruptcy: Chapter 7 This type of bankruptcy is often referred to as "total liquidation." The debtor is allowed to keep certain essential assets (such as pension plans and up to $7,500 of equity in a house) but must surrender remaining assets to be liquidated to pay off creditors.

Bankruptcy: Chapter 11 This type of bankruptcy is referred to as "business reorganization" rather than liquidation. A business is allowed to work out a payment plan to meet its obligations.

Bankruptcy: Chapter 13 This type of bankruptcy is for wage earners and others with a regular income. It allows the debtor to keep certain assets while they pay off the remainder of their debts during a three to five year period of time. During that time, creditors cannot pursue recovery through aggressive techniques.

Benefit rights interview (BRI) A USDOL required proceeding during which a claimant filing for UI benefits is advised of their rights and responsibilities, and of the penalties for failure to disclose truthful information. The information is conveyed either verbally, in a pamphlet, a video, or a combination of all three. Claimants normally acknowledge in writing that their rights have been explained and understood.

Billing notice A billing notice or statement of account mailed to the debtor monthly. The statement is itemized showing information such as, account activity during the month, previous balance due, amount paid, offsets used to reduce balance, any program interest penalty accrued, and the current balance.

Case management A system that allows (1) Prioritization of debt recovery activities, (2) Tracking of collector activities and dollars, (3) Control of workload, and (4) Requests for reports as needed by management.

Case study A training technique in which participants are given a set of data to analyze, such as a claimant's overpayment history, and must make recommendations on a plan of action or solution to a problem involving the data supplied.

Check stuffers/messages A relatively quick method to notify claimants of important changes they need to know. Examples: notice of Job Fairs being held, seminars, reminders of office closing, etc. The check stuffer is typically a check-sized piece of paper with a brief message. Messages can also be run in blank areas on checks or claim certifications.

Check information by telephone Off-the-shelf software that provides capability for accepting check information by telephone. The information is entered on an automated system that can print the check at a bank designated by the agency. The check is then deposited into the agency's account the same day.

Civil action To obtain the legal right to pursue recovery on an outstanding liability.

Claim offset(s) UI benefit(s) which the claimant is otherwise eligible to receive but which are used to repay, or offset, an existing benefit overpayment.

Collectibility profiling Evaluating the potential of collection efforts and then focusing efforts on debts with the greatest potential for collection. Collectibility profiling can be an effective tool for determining workload prioritization and collection strategy.

Collection letter A document used to respond to a specific request. Collection letters are a basic recovery method used by nearly everyone to collect past due accounts.

Cross Program Offset Agreement An agreement between the SESAs and the Secretary of Labor to allow overpayment claim offsets across state and federal programs.

Crossmatch This is a method of comparing files or records to detect inconsistencies. This technique is used for detecting fraud committed by employees, claimants, or employers. Typically, UI benefit files are crossmatched against address and wage records to discover improper payments. "Hits" are reviewed for possible fraud.

Data importing Software that provides capability for importing selected mainframe data elements to personal computers for processing.

Debtor A person who owes money to the UI fund.

Demand letter A document used to satisfy legal requirements for collection attempts. These documents are sent to debtors when: (1) required by predetermined criteria, e.g., no payment within a specific number of days, or (2) needed to communicate directly with the claimant, e.g., to advise debtor of pending legal action.

Desired level of achievement (DLA) The recovery percentage rate set by the USDOL. The current DLA is 55% for both fraud and non-fraud overpayments. The following formula is used to calculate the DLAs:
100 X Fraud/Non-fraud Recovered by Cash and Offset, (ETA 227 column 9/11, lines 202 plus 203) divided by Total Fraud/Non-fraud Overpayments, plus Additions and minus Subtractions (ETA 227 column 3, line 101/108 plus column 9/11, line 206 minus column 9/11, line 207).

Disability insurance State administered program for injuries or illnesses not covered by the Worker's Compensation program.

Discharge in Bankruptcy To release a bankrupted individual from the obligations of debts at the conclusion of the bankruptcy case and the administration of the bankrupt's estate.

DLA Acronym for "Desired level of achievement"

Earnings withholding order (EWO) The legal remedy used to intercept a portion of the debtor's wages to apply to an overpayment liability.

EFT Acronym for "electronic fund transfer."

Electronic funds transfer (EFT) The transfer of funds through a bank. This method requires authorization on the part of both parties to have their respective banks do the fund transfer.

ETA 227 Report The Overpayment Detection/Recovery Activities report - a quarterly report required by USDOL. The ETA 227 provides information on amounts of overpayments, recoveries, and prosecutions on intrastate and liable interstate claims.

EWO Acronym for "Earnings Withholding Order."

Fair Debt Collection Practices Act Federal legislation that was passed to protect consumers from the harassing tactics of debt collectors.

Fraud overpayments Overpayments due to willful misrepresentation of the facts by a claimant, employer, and/or involving another third party.

Garnishment A civil legal action to attach the property of a judgment debtor that is being held by a third party. This is normally a wage attachment of earnings payable to a debtor by the employer.

IBIQ See Interstate Inquiry.

Interactive voice response system (IVR) Telephone system that enables the caller to obtain individual account information through menu selection and entry of key data elements.

Interstate (INTERNET) Crossmatch and Locator System A widely used crossmatch that detects claimants receiving benefits in one state while working in another. Under USDOL sponsorship, three "hubs" receive and transmit information among the participating states.

Interstate Inquiry (IBIQ) A computer application that allows a SESA to send wage and benefit information inquiries to another SESA and receive a response within seconds.

Interstate Reciprocal Overpayment Recovery Arrangement (IRORA) An agreement between states to recover overpayments for each other. IRORA was developed by the Interstate Conference of Employment Security Agencies (ICESA) to allow recoupment between states to be easier and more uniform.

Judgment A legal decision or order issued by a judge or law court. A judgment is the result of the basic type of a lawsuit and, depending on state law, may be required before other types of legal action can be pursued.

Levy The process used to attach a debtor's bank account and transfer the funds to the collection organization as payment against the amount owed.

Lien A claim on the property of another as security against the payment of a debt. A perfected statutory lien, duly filed in the county in which the debtor owns real or personal property, is an effective recovery technique.

Model Crossmatch System A computer search of agency benefit payment records and wage records reported by employers to identify and select claimants who received one or more benefit payments for weeks in a calendar quarter and who earned wages of one dollar or more. A weighted probability index score is computed and assigned to each of the selected claimants to indicate the likelihood of finding an overpayment in their claim.

New Hire The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Program Letter 104-193, was enacted on August 22, 1996. This legislation, popularly known as the "welfare reform" bill, made several changes that affect the Unemployment Compensation (UC) program. Among these changes was (1) establishment of New Hire Directories at both the State and National levels, and (2) requirement that certain UC information be provided to State/National New Hire Directories. Most states have enacted enabling legislation that requires employers to report new hires within 20 days of the employee's start-of-work date. The information is matched against child support records to help locate parents in order to establish a wage withholding order or enforce an existing order. The information is also sent to the National Directory of New Hires to locate delinquent debtors in other states.

Next action step technology This technology groups accounts, based on predetermined criteria, by the next logical action in the collection process. As a collection activity is completed, the account is moved forward in the collection cycle to the next logical action step.

Non-fraud overpayments Overpayments due to errors made by claimants, employers, and/or SESAs.

Offer in compromise Accepting a lower repayment amount based upon a lump sum settlement within a specific number of days. An offer in compromise process requires the development of stringent criteria and must be closely monitored by management. The offer in compromise should include an option for the amount conditionally forgiven to become due and payable should the debtor be overpaid benefits again within a specific period of time.

Off the shelf software Packaged software that can act with a database in a client server capacity to enhance legacy mainframe systems.

Offsets UI benefits, which the claimant is otherwise eligible to receive, are used to repay, or offset, an existing benefit overpayment.

Predictive dialing systems Automated outgoing telephone calling systems that dial numbers based upon predetermined criteria. If someone in the household answers the telephone, the call is forwarded to the collector. Some systems include prompting case information when the call is referred to the collector.

Proactive Anticipating problems and taking action to prevent the problem(s) from occurring. An aggressive, proactive approach to recovery is defined as actions taken by the SESA to recover overpaid UI benefits

Reactive Addressing an issue only after it has become a problem.

Recovery The process (or actual) collecting of overpayments and managing the collection process.

Repayment agreement An agreement signed by a debtor to repay overpaid UI funds on an installment basis.

Repayments Cash, checks, money orders, or funds from other sources (e.g., credit cards, EFT, etc.) paid by the debtor to the UI fund to rectify an overpayment.

Skip-tracing An attempt to locate an individual, e.g., a debtor, with the use of the wage records file. A letter requesting the address of record of the debtor may be sent to the most recent employer(s) listed in the wage record files.

Uncollectible account Any case where the overpayment has not been recouped and is determined unlikely to be recouped subsequent to reasonable efforts.

Waiver A situation in which a non-fraud overpayment case may be deemed uncollectible because the state law authorizes the forgiveness of the overpayment debt, but does not cancel the overpayment.

Write-offs Instances in which the state law provides the authorization to cancel an overpayment.

Automated call processing	An automated telephone system that routes incoming calls to designated staff.
Automated voice response system	An automated touch-tone telephone system that provides information to individuals, eliminating the need for an information line staffed with personnel.
Bankruptcy	A proceeding filed by a debtor to seek relief from a debt(s) under the provisions of Title 11 of the United States Code.
Bankruptcy: Chapter 7	This type of bankruptcy is often referred to as "total liquidation." The debtor is allowed to keep certain essential assets (such as pension plans and up to $7,500 of equity in a house) but must surrender remaining assets to be liquidated to pay off creditors.
Bankruptcy: Chapter 11	This type of bankruptcy is referred to as "business reorganization" rather than liquidation. A business is allowed to work out a payment plan to meet its obligations.
Bankruptcy: Chapter 13	This type of bankruptcy is for wage earners and others with a regular income. It allows the debtor to keep certain assets while they pay off the remainder of their debts during a three to five year period of time. During that time, creditors cannot pursue recovery through aggressive techniques.
Benefit rights interview (BRI)	A USDOL required proceeding during which a claimant filing for UI benefits is advised of their rights and responsibilities, and of the penalties for failure to disclose truthful information. The information is conveyed either verbally, in a pamphlet, a video, or a combination of all three. Claimants normally acknowledge in writing that their rights have been explained and understood.
Billing notice	A billing notice or statement of account mailed to the debtor monthly. The statement is itemized showing information such as, account activity during the month, previous balance due, amount paid, offsets used to reduce balance, any program interest penalty accrued, and the current balance.
Case management	A system that allows (1) Prioritization of debt recovery activities, (2) Tracking of collector activities and dollars, (3) Control of workload, and (4) Requests for reports as needed by management.
Case study	A training technique in which participants are given a set of data to analyze, such as a claimant's overpayment history, and must make recommendations on a plan of action or solution to a problem involving the data supplied.
Check stuffers/messages	A relatively quick method to notify claimants of important changes they need to know. Examples: notice of Job Fairs being held, seminars, reminders of office closing, etc. The check stuffer is typically a check-sized piece of paper with a brief message. Messages can also be run in blank areas on checks or claim certifications.
Check information by telephone	Off-the-shelf software that provides capability for accepting check information by telephone. The information is entered on an automated system that can print the check at a bank designated by the agency. The check is then deposited into the agency's account the same day.
Civil action	To obtain the legal right to pursue recovery on an outstanding liability.
Claim offset(s)	UI benefit(s) which the claimant is otherwise eligible to receive but which are used to repay, or offset, an existing benefit overpayment.
Collectibility profiling	Evaluating the potential of collection efforts and then focusing efforts on debts with the greatest potential for collection. Collectibility profiling can be an effective tool for determining workload prioritization and collection strategy.
Collection letter	A document used to respond to a specific request. Collection letters are a basic recovery method used by nearly everyone to collect past due accounts.
Cross Program Offset Agreement	An agreement between the SESAs and the Secretary of Labor to allow overpayment claim offsets across state and federal programs.
Crossmatch	This is a method of comparing files or records to detect inconsistencies. This technique is used for detecting fraud committed by employees, claimants, or employers. Typically, UI benefit files are crossmatched against address and wage records to discover improper payments. "Hits" are reviewed for possible fraud.
Data importing	Software that provides capability for importing selected mainframe data elements to personal computers for processing.
Debtor	A person who owes money to the UI fund.
Demand letter	A document used to satisfy legal requirements for collection attempts. These documents are sent to debtors when: (1) required by predetermined criteria, e.g., no payment within a specific number of days, or (2) needed to communicate directly with the claimant, e.g., to advise debtor of pending legal action.
Desired level of achievement (DLA)	The recovery percentage rate set by the USDOL. The current DLA is 55% for both fraud and non-fraud overpayments. The following formula is used to calculate the DLAs: 100 X Fraud/Non-fraud Recovered by Cash and Offset, (ETA 227 column 9/11, lines 202 plus 203) divided by Total Fraud/Non-fraud Overpayments, plus Additions and minus Subtractions (ETA 227 column 3, line 101/108 plus column 9/11, line 206 minus column 9/11, line 207).
Disability insurance	State administered program for injuries or illnesses not covered by the Worker's Compensation program.
Discharge in Bankruptcy	To release a bankrupted individual from the obligations of debts at the conclusion of the bankruptcy case and the administration of the bankrupt's estate.
DLA	Acronym for "Desired level of achievement"
Earnings withholding order (EWO)	The legal remedy used to intercept a portion of the debtor's wages to apply to an overpayment liability.
EFT	Acronym for "electronic fund transfer."
Electronic funds transfer (EFT)	The transfer of funds through a bank. This method requires authorization on the part of both parties to have their respective banks do the fund transfer.
ETA 227 Report	The Overpayment Detection/Recovery Activities report - a quarterly report required by USDOL. The ETA 227 provides information on amounts of overpayments, recoveries, and prosecutions on intrastate and liable interstate claims.
EWO	Acronym for "Earnings Withholding Order."
Fair Debt Collection Practices Act	Federal legislation that was passed to protect consumers from the harassing tactics of debt collectors.
Fraud overpayments	Overpayments due to willful misrepresentation of the facts by a claimant, employer, and/or involving another third party.
Garnishment	A civil legal action to attach the property of a judgment debtor that is being held by a third party. This is normally a wage attachment of earnings payable to a debtor by the employer.
IBIQ	See Interstate Inquiry.
Interactive voice response system (IVR)	Telephone system that enables the caller to obtain individual account information through menu selection and entry of key data elements.
Interstate (INTERNET) Crossmatch and Locator System	A widely used crossmatch that detects claimants receiving benefits in one state while working in another. Under USDOL sponsorship, three "hubs" receive and transmit information among the participating states.
Interstate Inquiry (IBIQ)	A computer application that allows a SESA to send wage and benefit information inquiries to another SESA and receive a response within seconds.
Interstate Reciprocal Overpayment Recovery Arrangement (IRORA)	An agreement between states to recover overpayments for each other. IRORA was developed by the Interstate Conference of Employment Security Agencies (ICESA) to allow recoupment between states to be easier and more uniform.
Judgment	A legal decision or order issued by a judge or law court. A judgment is the result of the basic type of a lawsuit and, depending on state law, may be required before other types of legal action can be pursued.
Levy	The process used to attach a debtor's bank account and transfer the funds to the collection organization as payment against the amount owed.
Lien	A claim on the property of another as security against the payment of a debt. A perfected statutory lien, duly filed in the county in which the debtor owns real or personal property, is an effective recovery technique.
Model Crossmatch System	A computer search of agency benefit payment records and wage records reported by employers to identify and select claimants who received one or more benefit payments for weeks in a calendar quarter and who earned wages of one dollar or more. A weighted probability index score is computed and assigned to each of the selected claimants to indicate the likelihood of finding an overpayment in their claim.
New Hire	The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Program Letter 104-193, was enacted on August 22, 1996. This legislation, popularly known as the "welfare reform" bill, made several changes that affect the Unemployment Compensation (UC) program. Among these changes was (1) establishment of New Hire Directories at both the State and National levels, and (2) requirement that certain UC information be provided to State/National New Hire Directories. Most states have enacted enabling legislation that requires employers to report new hires within 20 days of the employee's start-of-work date. The information is matched against child support records to help locate parents in order to establish a wage withholding order or enforce an existing order. The information is also sent to the National Directory of New Hires to locate delinquent debtors in other states.
Next action step technology	This technology groups accounts, based on predetermined criteria, by the next logical action in the collection process. As a collection activity is completed, the account is moved forward in the collection cycle to the next logical action step.
Non-fraud overpayments	Overpayments due to errors made by claimants, employers, and/or SESAs.
Offer in compromise	Accepting a lower repayment amount based upon a lump sum settlement within a specific number of days. An offer in compromise process requires the development of stringent criteria and must be closely monitored by management. The offer in compromise should include an option for the amount conditionally forgiven to become due and payable should the debtor be overpaid benefits again within a specific period of time.
Off the shelf software	Packaged software that can act with a database in a client server capacity to enhance legacy mainframe systems.
Offsets	UI benefits, which the claimant is otherwise eligible to receive, are used to repay, or offset, an existing benefit overpayment.
Predictive dialing systems	Automated outgoing telephone calling systems that dial numbers based upon predetermined criteria. If someone in the household answers the telephone, the call is forwarded to the collector. Some systems include prompting case information when the call is referred to the collector.
Proactive	Anticipating problems and taking action to prevent the problem(s) from occurring. An aggressive, proactive approach to recovery is defined as actions taken by the SESA to recover overpaid UI benefits
Reactive	Addressing an issue only after it has become a problem.
Recovery	The process (or actual) collecting of overpayments and managing the collection process.
Repayment agreement	An agreement signed by a debtor to repay overpaid UI funds on an installment basis.
Repayments	Cash, checks, money orders, or funds from other sources (e.g., credit cards, EFT, etc.) paid by the debtor to the UI fund to rectify an overpayment.
Skip-tracing	An attempt to locate an individual, e.g., a debtor, with the use of the wage records file. A letter requesting the address of record of the debtor may be sent to the most recent employer(s) listed in the wage record files.
Uncollectible account	Any case where the overpayment has not been recouped and is determined unlikely to be recouped subsequent to reasonable efforts.
Waiver	A situation in which a non-fraud overpayment case may be deemed uncollectible because the state law authorizes the forgiveness of the overpayment debt, but does not cancel the overpayment.
Write-offs	Instances in which the state law provides the authorization to cancel an overpayment.