What Impact Does the Age of a State’s System Have on Unemployment Benefit Integrity?
the National Association of State Workforce Agencies (NASWA) released “A
National View of UI IT Systems”
which talks about all the problems associated with the age of a state’s Unemployment
of the benefits cited for updating old UI systems was that states with new systems
“generally report faster and more accurate benefit payments.” Intuitively
you might think that states with older unemployment insurance benefit systems would
have more trouble with maintaining control over their benefit integrity and have higher
overpayment rates. However, as this chart
shows, that isn’t necessarily the case.
chart below compares the age of state UI Benefits Systems as reported in the NASWA
2008 benefit overpayments as reporting in the Department of Labor Benefit
Accuracy Measurement report for 2008 (2009
report has not yet been released).
there doesn’t appear to be any strong correlation between the age of the system and
the benefit overpayment rate. I do think
there are many other reasons why it makes sense to invest in modernization of state
systems as outlined in the NASWA
unfortunately we wouldn’t expect to see any major reductions in benefit overpayments
as a result.
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