Oregon Employment Department

1. Oregon Employment Department Overpayment Recovery Unit Overpayment Recovery Unit A study of practices and processes to increase recovery

2. November 2009-Start of process improvement • Issue with private sector/government • Majority of time is spent ‘Working-in-the-Business’ • Running on the treadmill trying to keep up and you cannot jump off • The need? • ‘Work-on-the Business’ • Look at your processes/practices • Why do you do things the way you do?

3. Processes/Practices Researched and Improved • Staffing structure • Suspended Overpayments • Warrant and garnishment process • Credit Card payment process • Team lead • Standardization of training • Reducing tracking codes • The Future of Recovery at OED

4. Organizational Chart • November 2009 • 10 Revenue Agent 1’s-digits 0 thru 9 • 2 Revenue Agent 2’s-BK’s & Convictions • 2 Office Specialist 1’s-Support staff • Supervisor • December 2009 • 11 Revenue Agent 1’s-digits 0 thru 9 & suspended accounts • 1 Revenue Agent 2-BK’s & Convictions • 2 Office Specialist 1’s-Support staff • 1 Team Lead • Supervisor

5. Suspended Overpayments • Auto suspend after 3 years and no payment activity • What we found out? • Many accounts in suspense were warranted had assets and we were not working them • The extra RA1 due to Organizational change allowed us to devote collection activity to these accounts. • Start of collection activity-December 15, 2009

6. Suspended Overpayment Results • Jan. 15, 2010 $14,722 • January 30, 2010 $24,305 • June 30, 2010 $419,771 • January 3, 2011 $775,205 • SOIL(State tax refund intercept) $958,524 • CY 2011 $657,143 • Inception thru Feb. 1, 2012 $1,505,166 • RA1-Suspended accounts, refunds, misapplied payments and SOIL posting-50/50 Recovered

7. Warrant & Garnishment Process • 12 to 15 Step Process from initiation of Civil Action until Garnishment Response • Process required maximum effort on the unit’s part for a 30-60 day response • 2009-10,000+ Warrants and Garnishments for $3.5 million in recovery

8. Current Civil Action Process • 3 Steps • From initiation of Civil Action to Response is 10-20 days • 2011-15,677 Warrants and Garnishments for $5.2 million in recovery • Each month for last 4 months-$500K+ • On pace to recover $6 Million + for 2012-Doubled since 2009

9. Civil Action Recognition

10. Civil Action Recognition

11. Credit Card Recovery Process • 2009 Philosophical Change • Credit Card payments took top priority • $$ in the Bank • Included Cashier’s Cheques to boost individual totals • Trophy and certificates each month

12. Credit Card Recovery Recognition

13. Credit Card Recovery Results • 2009-$1.9 Million • 2011-$3.1 Million-40% increase • 2011-Average number of transactions/month-1,143 • January 2012-$339K and 1,295 transactions • February 2012-$413K and 1,523 transactions • Records for unit, however, at 3 minutes per call it equates to 76 hours. • Implemented recurring payments in November 2011-currently have 189 recurring accounts established.

14. Overall Recovery Recognition

15. Introduction of Team Lead • January 2011 introduced Team Lead • Responsibilities include: • Escalated calls • Training • New employee orientation • Assessing work flow/processes • Assigning work load • Warrant & garnishment approvals • Assist with monthly reports

16. Standardization of training • Our current policy/training manual

17. Standardization of Training

18. Standardization of Training

19. Standardization of training

20. Standardization of training

21. Queue Management • Follow-Up Codes • 00-LIQUIDATED-ZERO BALANCE • 99-Check DOJ status • Everything in-between: overwhelming • Currently using 45 Follow-up Codes

22. The Future of Recovery at OED • Process Improvement Group • OED Website payment processing • Predictive Dialer • UC TOP

23. The Future of Recovery at OED • Proud to be a P.I.G.-Process Improvement Group • Meet bi-weekly to discuss process improvements • Ideas come from the unit • Decide which ideas have merit • Prioritize them • Implement them • Train on them • Update the Policy Manual to include the new process

24. The Future of OPR at OED • On-line payment ability at OED website • Credit card/ACH payments • Designed for claimants and employers • Move away from the need to have one on one conversations with claimants to take a payment • Free RA’s time to skip trace and set up voluntary payment arrangements • Make it easy for claimants and employers to pay us-24/7

25. The Future of Recovery at OED • Predictive Dialer • Washington currently using this system since 2001 • Reduce the number of out-bound calls and increase the number of in-bound calls • Program to make contact with us and payment reminder messages • Track the results from the predictive dialer

26. The Future of Recovery at OED • Participation in UC TOP • Currently working on Safeguard Procedure Report • Agency Profile submitted • Test in September 2012 • Implement by Tax Year 2013 • $?? Million to Submit • Recovery Expectations: $3-5 million per year

27. Contact information • Oregon Employment Department • Kevin McCarron • Overpayment Recovery Manager • UI Benefits • (503)947-1375 • (503)947-1376 FAX • Kevin.e.mccarron@state.or.us