Section G - UIPL 33-99

Summary of Guidelines

Overview

Introduction This section contains a compilation of the guidelines provided in this Technical Assistance Guide.

In this section The following topics will be discussed in this section.

Topic Page

Introduction 2

Recovery Program 3

Recovery Methods 6

Collection Documents 9

Legal Action 12

Automation 14

Introduction

Introduction Program management guidelines are provided for SESA consideration to enhance recovery programs.

Overpayment prevention It is recommended that SESAs:
Study the various types of and reasons for overpayments and then take appropriate action to eliminate or control the problem.

Periodically evaluate increases or declines in overpayment establishments to measure the effectiveness of the agency's prevention methods and techniques.

BPC funding It is recommended that SESAs:
Capture data on the cost of recovery programs.

Compare results to those achieved by other collection organizations in the public and private sector.

Consider shifting the cost of recovery to the debtor to augment funding.

Recovery Program

Introduction Recovery program guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.

Organizational structure While no specific guidelines are recommended, SESAs should ensure that recovery is not impacted by the diversion of collection staff to other BPC activities. It is important to provide opportunities for aggressive, proactive recovery activities.

Statutory authority It is recommended that SESAs pursue legislation that does not unnecessarily limit or restrict recovery efforts used to recover overpaid UI benefits.

Statute of limitations It is recommended that SESAs pursue legislation that:
Supports a recovery period between three and ten years.

Does not unnecessarily restrict or limit the use of a particular method during the recovery period.

Fraud penalties It is recommended that SESAs:

Study the administrative penalty process to determine effectiveness and/or impact on the recovery of overpaid benefits.

Consider legislation to support a progressive monetary penalty when fraudulent activities result in an overpayment of benefits, e.g., 50 percent for first occurrence, 75 percent for second, 100 percent for third.

Cost of recovery It is recommended that SESAs pursue the enactment of statutes that support shifting the cost of recovery to the debtor.

Waiver It is recommended that SESAs:
Request legislation, if state law does not already provide for waiver, to waive repayment under specific circumstances.

Develop written guidelines to ensure that the waiver provision is administered equitably.

Periodically evaluate the number and amounts of waived overpayments to measure the effectiveness of the agency's prevention methods and techniques.

Write-Off It is recommended that SESAs:
Pursue legislation to support writing off overpayments when identified as uncollectible.

Periodically review overpayments written off to measure the effectiveness of the agency's recovery program.

Periodically review debts transferred to the Allowance for Doubtful Accounts to ensure uncollectible debt is not retained indefinitely.

Collection cycle It is recommended that SESAs:
Initiate aggressive recovery activities as soon as allowed by statute.

Develop procedures to ensure collection activities intensify throughout the collection cycle.

Periodically review and evaluate the collection cycle to ensure debtors are not avoiding repayment by delaying the collection process.

Strive for win-win solutions that result in the collection of the debt in a timely manner while maintaining the goodwill of the debtor.

Establish clearly defined parameters for collection attempts.

Recovery processes and tools It is recommended that SESAs:
Pursue legislation to:

Report delinquent and/or untimely installment payments to credit reporting bureaus.

Support the assessment and/or waiver of repayment of fees that can be used to develop win-win solutions.

Develop an offer in compromise process.

Accept repayment of overpaid UI benefits via credit cards, debit cards and/or electronic funds transfers.

Explore feasibility of purchasing software that provides for taking check information by telephone.

Skip-tracing It is recommended that SESAs:
Consider feasibility of using the Internet as another skip-tracing tool.

Periodically evaluate recovery of skip-tracing cases to determine cost-effectiveness and impact on resources available to pursue recovery of overpaid benefits.

Consider outsourcing recovery to private collection agencies when debtors have moved to another state.

Recovery Methods

Introduction Recovery method guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.

Collection documents It is recommended that SESAs review all collection documents and revise as needed to:
Improve readability.

Provide clear, concise information.

Eliminate accusatory language.

Minimize the use of legalistic terminology.

Enhance effectiveness through use of formatting, i.e., color, bolding, underlining, etc.

UI benefit offset It is recommended that SESAs:
Offset payable UI benefits to recover both fraud and non-fraud overpayments.

Periodically evaluate the effectiveness of the offset percentage to ensure overpayments are recovered in as short a period of time as possible.

Pursue legislation that provides for the recovery of overpayments through the offset of UI benefits until:

The overpayment is paid in full.

The statute of limitations for recovery has expired.

The overpayment is written off as uncollectible.

Participate in all available reciprocal agreements to offset overpayments between programs.

Interstate recovery It is recommended that SESAs:
Lacking authority to assist in recovering an overpayment for another state, review their law and policy. If necessary, the SESA should seek a change in the law to provide such authority.

Consider outsourcing recovery to a private collection agency when the claimant resides out-of-state and is not currently claiming benefits in the state of residence.

Participate in all available reciprocal agreements to offset overpayments between states.

Other offset programs It is recommended that SESAs:

Seek legislation that provides for offset of any/all benefits and/or refunds to which the claimant is entitled to recover overpaid UI benefits.

Consider streamlining and automating offset processes to reduce labor intensive manual processes.

Pursue legislation that provides for the recovery of overpayments through the offset of money to which the claimant is otherwise entitled to receive until:

The overpayment is paid in full.

The statute of limitations for recovery has expired.

The overpayment is written off as uncollectible.

Consider transferring any costs charged by the offsetting organization to the debtor.

Personal contact It is recommended that SESAs:
Enhance recovery programs by dedicating staff to this potentially effective collection method.

Make personal contact with debtors if debts are not paid in full or repayment agreement reached within 60 days of the final appeal date.

Provide staff with training in customer service and problem solving techniques to ensure contact with the claimant has a positive result.

Use every contact with the claimant as an opportunity to recover the overpayment in full or negotiate a repayment plan.

Civil action It is recommended that SESAs:

Pursue legislation, when necessary, to obtain administrative authority that does not require SESA or legal staff to attend court proceedings.

Develop written guidelines to ensure the civil action is pursued equitably.

Capture statistical data to evaluate cost-effectiveness of recovery through civil action and shift cost of recovery to the debtor.

Consider automating manual, labor intensive processes.

Outsourcing debt collection activities It is recommended that SESAs consider outsourcing when:

It is not cost effective for the SESA to pursue recovery.

The debtor is living in a state other than the one in which he and/or she was overpaid.

There is minimal expectation of collecting the amount owed and the overpayment may be written off as uncollectible.

Collection Documents

Introduction Collection document guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.

Predetermination notices It is recommended that SESAs:
Review and revise the predetermination notice to provide information about paying the potential overpayment.

Include a repayment coupon and return envelope.

Periodically evaluate the dollars received as a direct result of the predetermination notice to measure effectiveness and identify potential improvement areas.

Overpayment determinations It is recommended that SESAs:

Include the following information in an overpayment determination:

The monthly repayment amount, in lieu of payment in full, that is acceptable to the SESA.

A statement on repayment.

Include a payment coupon and self-addressed return envelope with the overpayment determination.

Periodically evaluate the dollars received as a direct result of the overpayment determination to measure effectiveness and identify potential improvement areas.

Explore the option of repayment by electronic funds transfer.

Avoid the use of accusatory language.

Minimize the use of legalistic terminology.
>
Provide clear, concise information written at or below the standard eighth grade level.

Contain formatting and font size that improve overall readability of the document.

Installment agreements It is suggested that SESAs:
Encourage repayment by electronic funds transfer.

Consider a policy permitting overpaid claimants to liquidate debts on an installment plan based upon the SESAs statutory limitations.

Pursue legislation that enables the SESA to report delinquent or untimely debts to credit bureaus.

Provide training to staff to develop telephone collection techniques and negotiation skills.

Pursue legislation to support assessing a fee to establish and/or re-establish installment payment plans.

Billing statements It is recommended that SESAs:

Develop criteria for when and how long to send billing statements when the debtor does not respond.

Provide repayment coupons and return envelope.

Periodically evaluate the dollars received as a direct result of the billing statement to measure effectiveness and identify improvement opportunities.

Consider adding automated messages to the monthly billing statements that give the appearance that accounts are being monitored. These messages include:

"Thank you for payment"

"Your last payment was made on date. Please send a payment immediately in the enclosed envelope."

"Our records do not show payments for the last..."

Collection and/or demand letters It is recommended that SESAs:
Develop criteria for when and how often to send collection letters.

Include repayment coupons and return envelopes.

Capture data to compare resources expended to dollars recovered as a direct result of collection letters to determine benefit.

Ensure more aggressive methods are not postponed due to delays caused by collection letters.

Legal Action

Introduction Legal action guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.

Prosecution
When the decision to prosecute is made, it is recommended that SESAs:

Insist that restitution be made part of every plea bargain.

Request the sentencing court to require restitution as part of sentencing and to retain jurisdiction over the defendant until payment has been completed.

Request the court to include in the sentence a specific payment schedule or a date by which total restitution must be made.

Develop and implement follow-up procedures to ensure that the defendant is abiding by the court's instructions.

Capture data on the cost of recovery to ensure recovery via prosecution is cost effective.

Probate It is recommended that SESAs:

Develop written guidelines and procedures for filing probate claims whenever an estate may have sufficient assets to cover the amount owed.

Periodically evaluate recovery through the probate process to determine cost-effectiveness and impact on resources available to pursue recovery of overpaid benefits.

Bankruptcy It is recommended that SESAs:
Develop written guidelines and procedures for the handling of bankruptcy cases.

Periodically evaluate recovery of bankruptcy cases to determine cost-effectiveness and impact on resources available to pursue recovery of other overpaid benefits.

Periodically review cases to identify potential improvements to collection procedures that may prevent claimants from electing to discharge debts through bankruptcy.

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Automation

Introduction Automation guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.

Automating manual processes It is recommended that SESAs:
Periodically review manual processes to ensure cost effectiveness, i.e., it should not cost more to recover the overpayment than the amount of the overpayment.

Develop step-by-step procedures to ensure manual processes interface effectively with automated processes.

Consider automating labor intensive manual processes.

Legacy mainframe systems It is recommended that SESAs:
Keep pace with rapidly changing technology.

Explore opportunities for program improvement.

Take advantage of information available on the ITSC UI Web Site (http://www.itsc.state.md.us).

Automation today It is recommended that SESAs:

Consider using off-the-shelf software for automation of recovery activities.

Encourage SESA staff to access and/or share information on the ITSC UI Web Site (http://www.itsc.state.md.us) on recovery methods, techniques, tools, and automation.

Case management systems It is recommended that SESAs:

Implement an automated case management system.

Measure the cost of recovery activities, dollars recovered, and performance.

Collectibility Profiling It is recommended that all SESAs:
Develop criteria for prioritizing workload to focus efforts on overpayments with greater potential for recovery.

Identify elements to be included in an automated process.

Consider cost of recovery when determining what collection actions should be taken.

Consider outsourcing debt recovery when it is not cost effective for the SESA to pursue recovery.

Introduction	This section contains a compilation of the guidelines provided in this Technical Assistance Guide.
In this section	The following topics will be discussed in this section.

Topic	Page
Introduction	2
Recovery Program	3
Recovery Methods	6
Collection Documents	9
Legal Action	12
Automation	14

Introduction	Recovery program guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.
Organizational structure	While no specific guidelines are recommended, SESAs should ensure that recovery is not impacted by the diversion of collection staff to other BPC activities. It is important to provide opportunities for aggressive, proactive recovery activities.
Statutory authority	It is recommended that SESAs pursue legislation that does not unnecessarily limit or restrict recovery efforts used to recover overpaid UI benefits.
Statute of limitations	It is recommended that SESAs pursue legislation that: Supports a recovery period between three and ten years. Does not unnecessarily restrict or limit the use of a particular method during the recovery period.
Fraud penalties	It is recommended that SESAs: Study the administrative penalty process to determine effectiveness and/or impact on the recovery of overpaid benefits. Consider legislation to support a progressive monetary penalty when fraudulent activities result in an overpayment of benefits, e.g., 50 percent for first occurrence, 75 percent for second, 100 percent for third.
Cost of recovery	It is recommended that SESAs pursue the enactment of statutes that support shifting the cost of recovery to the debtor.
Waiver	It is recommended that SESAs: Request legislation, if state law does not already provide for waiver, to waive repayment under specific circumstances. Develop written guidelines to ensure that the waiver provision is administered equitably. Periodically evaluate the number and amounts of waived overpayments to measure the effectiveness of the agency's prevention methods and techniques.
Write-Off	It is recommended that SESAs: Pursue legislation to support writing off overpayments when identified as uncollectible. Periodically review overpayments written off to measure the effectiveness of the agency's recovery program. Periodically review debts transferred to the Allowance for Doubtful Accounts to ensure uncollectible debt is not retained indefinitely.
Collection cycle	It is recommended that SESAs: Initiate aggressive recovery activities as soon as allowed by statute. Develop procedures to ensure collection activities intensify throughout the collection cycle. Periodically review and evaluate the collection cycle to ensure debtors are not avoiding repayment by delaying the collection process. Strive for win-win solutions that result in the collection of the debt in a timely manner while maintaining the goodwill of the debtor. Establish clearly defined parameters for collection attempts.
Recovery processes and tools	It is recommended that SESAs: Pursue legislation to: Report delinquent and/or untimely installment payments to credit reporting bureaus. Support the assessment and/or waiver of repayment of fees that can be used to develop win-win solutions. Develop an offer in compromise process. Accept repayment of overpaid UI benefits via credit cards, debit cards and/or electronic funds transfers. Explore feasibility of purchasing software that provides for taking check information by telephone.
Skip-tracing	It is recommended that SESAs: Consider feasibility of using the Internet as another skip-tracing tool. Periodically evaluate recovery of skip-tracing cases to determine cost-effectiveness and impact on resources available to pursue recovery of overpaid benefits. Consider outsourcing recovery to private collection agencies when debtors have moved to another state.

Introduction	Recovery method guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.
Collection documents	It is recommended that SESAs review all collection documents and revise as needed to: Improve readability. Provide clear, concise information. Eliminate accusatory language. Minimize the use of legalistic terminology. Enhance effectiveness through use of formatting, i.e., color, bolding, underlining, etc.
UI benefit offset	It is recommended that SESAs: Offset payable UI benefits to recover both fraud and non-fraud overpayments. Periodically evaluate the effectiveness of the offset percentage to ensure overpayments are recovered in as short a period of time as possible. Pursue legislation that provides for the recovery of overpayments through the offset of UI benefits until: The overpayment is paid in full. The statute of limitations for recovery has expired. The overpayment is written off as uncollectible. Participate in all available reciprocal agreements to offset overpayments between programs.
Interstate recovery	It is recommended that SESAs: Lacking authority to assist in recovering an overpayment for another state, review their law and policy. If necessary, the SESA should seek a change in the law to provide such authority. Consider outsourcing recovery to a private collection agency when the claimant resides out-of-state and is not currently claiming benefits in the state of residence. Participate in all available reciprocal agreements to offset overpayments between states.
Other offset programs	It is recommended that SESAs: Seek legislation that provides for offset of any/all benefits and/or refunds to which the claimant is entitled to recover overpaid UI benefits. Consider streamlining and automating offset processes to reduce labor intensive manual processes. Pursue legislation that provides for the recovery of overpayments through the offset of money to which the claimant is otherwise entitled to receive until: The overpayment is paid in full. The statute of limitations for recovery has expired. The overpayment is written off as uncollectible. Consider transferring any costs charged by the offsetting organization to the debtor.
Personal contact	It is recommended that SESAs: Enhance recovery programs by dedicating staff to this potentially effective collection method. Make personal contact with debtors if debts are not paid in full or repayment agreement reached within 60 days of the final appeal date. Provide staff with training in customer service and problem solving techniques to ensure contact with the claimant has a positive result. Use every contact with the claimant as an opportunity to recover the overpayment in full or negotiate a repayment plan.
Civil action	It is recommended that SESAs: Pursue legislation, when necessary, to obtain administrative authority that does not require SESA or legal staff to attend court proceedings. Develop written guidelines to ensure the civil action is pursued equitably. Capture statistical data to evaluate cost-effectiveness of recovery through civil action and shift cost of recovery to the debtor. Consider automating manual, labor intensive processes.
Outsourcing debt collection activities	It is recommended that SESAs consider outsourcing when: It is not cost effective for the SESA to pursue recovery. The debtor is living in a state other than the one in which he and/or she was overpaid. There is minimal expectation of collecting the amount owed and the overpayment may be written off as uncollectible.

Introduction	Collection document guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.
Predetermination notices	It is recommended that SESAs: Review and revise the predetermination notice to provide information about paying the potential overpayment. Include a repayment coupon and return envelope. Periodically evaluate the dollars received as a direct result of the predetermination notice to measure effectiveness and identify potential improvement areas.
Overpayment determinations	It is recommended that SESAs: Include the following information in an overpayment determination: The monthly repayment amount, in lieu of payment in full, that is acceptable to the SESA. A statement on repayment. Include a payment coupon and self-addressed return envelope with the overpayment determination. Periodically evaluate the dollars received as a direct result of the overpayment determination to measure effectiveness and identify potential improvement areas. Explore the option of repayment by electronic funds transfer. Avoid the use of accusatory language. Minimize the use of legalistic terminology. > Provide clear, concise information written at or below the standard eighth grade level. Contain formatting and font size that improve overall readability of the document.
Installment agreements	It is suggested that SESAs: Encourage repayment by electronic funds transfer. Consider a policy permitting overpaid claimants to liquidate debts on an installment plan based upon the SESAs statutory limitations. Pursue legislation that enables the SESA to report delinquent or untimely debts to credit bureaus. Provide training to staff to develop telephone collection techniques and negotiation skills. Pursue legislation to support assessing a fee to establish and/or re-establish installment payment plans.
Billing statements	It is recommended that SESAs: Develop criteria for when and how long to send billing statements when the debtor does not respond. Provide repayment coupons and return envelope. Periodically evaluate the dollars received as a direct result of the billing statement to measure effectiveness and identify improvement opportunities. Consider adding automated messages to the monthly billing statements that give the appearance that accounts are being monitored. These messages include: "Thank you for payment" "Your last payment was made on date. Please send a payment immediately in the enclosed envelope." "Our records do not show payments for the last..."
Collection and/or demand letters	It is recommended that SESAs: Develop criteria for when and how often to send collection letters. Include repayment coupons and return envelopes. Capture data to compare resources expended to dollars recovered as a direct result of collection letters to determine benefit. Ensure more aggressive methods are not postponed due to delays caused by collection letters.

Introduction	Legal action guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.
Prosecution	When the decision to prosecute is made, it is recommended that SESAs: Insist that restitution be made part of every plea bargain. Request the sentencing court to require restitution as part of sentencing and to retain jurisdiction over the defendant until payment has been completed. Request the court to include in the sentence a specific payment schedule or a date by which total restitution must be made. Develop and implement follow-up procedures to ensure that the defendant is abiding by the court's instructions. Capture data on the cost of recovery to ensure recovery via prosecution is cost effective.
Probate	It is recommended that SESAs: Develop written guidelines and procedures for filing probate claims whenever an estate may have sufficient assets to cover the amount owed. Periodically evaluate recovery through the probate process to determine cost-effectiveness and impact on resources available to pursue recovery of overpaid benefits.
Bankruptcy	It is recommended that SESAs: Develop written guidelines and procedures for the handling of bankruptcy cases. Periodically evaluate recovery of bankruptcy cases to determine cost-effectiveness and impact on resources available to pursue recovery of other overpaid benefits. Periodically review cases to identify potential improvements to collection procedures that may prevent claimants from electing to discharge debts through bankruptcy.

Introduction	Automation guidelines are provided for SESA consideration to enhance the recovery of overpaid UI benefits.
Automating manual processes	It is recommended that SESAs: Periodically review manual processes to ensure cost effectiveness, i.e., it should not cost more to recover the overpayment than the amount of the overpayment. Develop step-by-step procedures to ensure manual processes interface effectively with automated processes. Consider automating labor intensive manual processes.
Legacy mainframe systems	It is recommended that SESAs: Keep pace with rapidly changing technology. Explore opportunities for program improvement. Take advantage of information available on the ITSC UI Web Site (http://www.itsc.state.md.us).
Automation today	It is recommended that SESAs: Consider using off-the-shelf software for automation of recovery activities. Encourage SESA staff to access and/or share information on the ITSC UI Web Site (http://www.itsc.state.md.us) on recovery methods, techniques, tools, and automation.
Case management systems	It is recommended that SESAs: Implement an automated case management system. Measure the cost of recovery activities, dollars recovered, and performance.
Collectibility Profiling	It is recommended that all SESAs: Develop criteria for prioritizing workload to focus efforts on overpayments with greater potential for recovery. Identify elements to be included in an automated process. Consider cost of recovery when determining what collection actions should be taken. Consider outsourcing debt recovery when it is not cost effective for the SESA to pursue recovery.