UI Integrity / Improper Payments Joint Federal/State Task Force

1. Colorado UI Integrity / Improper PaymentsJoint Federal/State Task Force State Presentation: Colorado October 28, 2011 Final

2. Areas of National Focus: Colorado • Benefit Year Earnings (BYE): Root Causes Identified: • Agency Causes • Too few BPC staff to adequately investigate and address cross-match hits • Not taking full advantage of NDNH and jail roster data • Lack of automation of cross-match activities • Not using all contacts with claimants and employers as an opportunity to educate • Claimant Causes • Lack of understanding of reporting requirements (difference between net vs. gross earnings; when earned vs. when paid) • Fraudulent failure to report earnings

3. Areas of National Focus: Colorado • Benefit Year Earnings (BYE): Planned action(s) to address: • Increase the number of integrity staff in new UI organization • Targeted outbound call campaign to claimants who have reported wages explaining their responsibilities • Revision of claimant communication tools (handbook, hold messages, call center scripts [IVR, Web], etc.) • Procurement of enhanced cross-match automation • Use website to publicize fraud convictions Principal milestones: • New UI organization goes into effect 11/01/201 • Targeted outbound call campaign to begin 12/2011 • Updated communication tools by 12/20 • Cross-match RFP to be released by 10/31/2011 3

4. Areas of National Focus: Colorado • Separations (SEPs): Root Causes Identified: • Agency Causes • Incorrect separation determinations • Inadequate fact-finding at the time of initial claim submission • Insufficient number of staff to adequately adjudicate separation-related issues • Claimant Causes • Failure to report separations • Employer Causes • Non-timely submission of separation information 4

5. Areas of National Focus: Colorado • Separations: • Planned action(s) to address: • Increase the number of adjudication staff in new CDLE-UI organization—no more “speed adjudicating” • Provide refresher training for adjudicators • Determine whether to provide fact-finding training to call center agents • Use all communications with employers to stress the importance of timely submission of separation documents • Principal milestones: • New UI organization goes into effect11/01/201 • Decision on role of call center in fact-finding,by 11/30/2011 5

6. Areas of National Focus: Colorado • Work Search Issues: Root Causes Identified: • Agency Causes • Lack of specificity in current regulations concerning work search, recordkeeping, and record retention requirements • Lack of specificity in current claimant communications concerning work search, recordkeeping, and record retention requirements • Treating failures to respond to BAM questionnaire as work search overpayments • Claimant Causes • Lack of understanding of work search, recordkeeping, and record retention requirements 6

7. Areas of National Focus: Colorado • Work Search Issues : • Planned actions to address: • Develop new regulations to provide clarity and specifics on work search, recordkeeping, and record retention requirements • Issue formal warning letter to claimants that failed to make a proper, adequate work search instead of establishing overpayment with targeted follow up • Revise claimant communication tools (handbook, hold messages, call center scripts, etc.) • Provide work search logs on line and in handbook • Principal milestones: • New regulation in place by January 2012 • Updated communication tools by 12/2011 7

8. Everybody Owns Integrity Colorado • Strategies to Support Owning UI Integrity: • Increase in the number of UI staff addressingimproper payment-related issues • Encourage staff from across the organization to “own” and report improper payments to BPC for investigation – additional staff in BPC will allow follow-up • Develop processes that promote the sharing of information across the organization for performance improvement and lessons learned • BAM results shared quarterly • Appeals reversals shared with adjudicator • Use data from BAM and appeals to identify training needs that will further reduce improper payments • Involvement of staff from across CDLE in the Integrity Task Force and in implementing this action plan

9. Communications Colorado • Communications Strategies: • To claimants • Revised handbook with work search and earning logs • Revised hold messages and IVR scripts (both work search and BYE) • Targeted outbound calls for claimants reporting wages • Congratulations letters to claimants who appear on the NDNH • To employers • Auditors to communicate importance of submitting forms timely • Use of quarterly Tax Newsletter to educate • Explore use of outbound call reminders

10. Communications Colorado • Communications Strategies, Continued: • To state UI staff • Keep staff appraised of Task Force Activities • Involve staff in UI Integrity process improvement activities • To the public • Rulemaking process to strengthen work search recordkeeping requirements • Monthly UI Stakeholder Group meetings • To state leaders (Governor, state legislature, etc.) • Rulemaking process to strengthen work search recordkeeping requirements • Monthly UI Stakeholder Group meetings • Regular progress reporting to the Governor on activities related to improper payments

11. Summary and Q&A Colorado “Integrity: Own It!” • Questions? • State contact for follow-up: Brian Chesher: brian.chesher@state.co.us Phone: 303-318-9463