UI Integrity / Improper Payments Joint Federal/State Task Force

1. UI Integrity / Improper PaymentsJoint Federal/State Task Force State Presentation: ARKANSAS October 13, 2011

2. Areas of National Focus: Benefit Year Earnings and Separation Issues Planned action(s) to address Detection/Prevention: • Develop system to cross reference a prior claim in the base period of the current claim with the wage database at the time of the initial claim filing -July 2012 • Educate employers on the importance of protesting separation issues, on providing timely responses to requests for information, and on how reporting issues can affect their tax rate -January 2012 • To prevent additional fraud overpayments develop and hold periodic training programs for local office and central office staff on identifying issues from past claims at initial claim process and trends in detection and adjudication errors - January 2012 2

3. Areas of National Focus: Planned action(s) to address Detection/Prevention: • Direct all IVR/new hire cross match hits go to a separate queue to be worked centrally with a control date being entered on not only that week, but the following claimed week. - April 2012 • Update and refine the Compare Wage green screen (WCMP) for iNet usage to aid local offices in detecting earnings issues - April 2012 • Reprogram requalifying flag on initial claim filing to “N” default to aid local offices in insuring there are requalyifing wages – In progress

4. Areas of National Focus: Planned action(s) to address Detection Law change requiring employers to report earnings at the time they report to the New Hire Registry – Undeterminable period Cross match the unemployment claims database with the wages keyed via Contributions section as the wages are keyed to detect earnings fraud issues more timely- July 2012 Cross train the Blocked Claims Unit (515 Unit) to determine any potential earnings fraud issues when reviewing IWAGE -January 2012 Develop a program to add a check in the claim filing/continue claim process, this would involve two areas: LADT and SIDES – begin June 2012 Develop a program to detect when a claimant has stopped reporting earnings and/or reporting the exact amount of earnings each week – June 2012 4

5. Areas of National Focus: Benefit Year Earnings/Separations/other issues Prevention: To improve timeliness, quality and reduce the amount of appeals implement an electronic employer notification on the notice to last employer and 525 questionnaire forms – October 31, 2011 Congratulatory letter from Director of UI to claimant if he/she gains employment, reminding him/her to report gross earnings - ASAP Improve adjudication by requiring Board of Review and Appeal Tribunal Staff to attend basic and advanced unemployment training – January 2012 5

6. Benefit Year Earnings/Separations/other issues Prevention: • Review Board of Review procedures in order to streamline the process and address decision backlogs by considering solutions such as limiting discretionary appeals and expediting employer appeals – June 2012 • To deter fraud by proposing a law change mandating that claimants who have committed fraud in the claim process are ineligible for future UI benefits – January 2013 • After a decision has been issued from appeals, follow up with an email to the local office manager alerting the manager of a potential fraud issue – December 2011

7. Communications Communications Strategies: • To reduce claimant confusion on reporting wages add the specific date of the week being claimed to the IVR filing question: “Did you work during the week?” - Immediate • Provide additional information to claimants on reporting earnings correctly and the reporting of other issues by adding a reminder to Arkline and Arknet, by prominently displaying fraud posters, and by providing complete and important information to claimants during the initial claim filing – December 2011 • Publicize results of prosecution – ASAP

8. Communications Communications Strategies: • Spread the wealth of knowledge of training opportunities and significant changes to agency programs; continually compile deficient areas of the claims process through investigation and appeals process; systematically distribute this knowledge back to Agency personnel to improve performance; examine the potential use of another agency’s training module/portal – January 2012 • Require central office new hire staff to work in a local office for a week – January 2012

9. Collections COLLECTION OF OVERPAYMENTS • Participate in the Treasury Offset Program – January 2012 • Hire personnel to reduce the backlog of manual overpayment establishments – October 2011 • Attempt to contact claimants who have stopped making restitution and do not have up to date contact information (September 2012); this attempt to contact claimants can be in the form of: • Skip tracing • Cross match with other agencies • Use free internet sites to update address information. • Explore accepting e-payments to increase convenience. • File more liens and garnishments to increase incentive for voluntary repayments.

10. Summary and Q&A “Integrity: Own It!” • Questions? • State Contact for follow-up: Don.Denton@arkansas.gov Phone: (501) 682-3250