PAY CARDS STATE OF MISSOURI OFFICE OF ADMINISTRATION DIVISION OF ACCOUNTING LIBBIE FARRELL

Reasons for Pay Cards Mandatory Direct Deposit as a Condition of EmploymentImplemented 1/1/08 Mandatory Direct Deposit as a Condition of EmploymentImplemented 1/1/08 –Change to Code of State Regulations –Revision of Statewide Policy –Excludes Seasonal/Temporary employees Less than three months of employment Less than three months of employment Un-bankable employees Un-bankable employees Employees refuse to provide checking or savings account information Employees refuse to provide checking or savings account information

Options Bid Process Bid Process –Only one Pay card type available Utilize current banking contracts Utilize current banking contracts –Employee decides which meets their needs

Process Employee completes application Employee completes application Central HR staff enters into banks system Central HR staff enters into banks system Bank issues cards & mails directly to employee Bank issues cards & mails directly to employee Bank sends interface file to us with employees banking information Bank sends interface file to us with employees banking information Able to bypass prenote process Able to bypass prenote process Employee must activate card to gain access to funds. Employee must activate card to gain access to funds. Short window of time to enter applications between pay cycles Short window of time to enter applications between pay cycles

Differences Bank A Bank A –We receive a list of card numbers –Enter employee information via web –Card number is the account number –If the employee does not receive card Overnight new card Overnight new card Issue a check Issue a check Transfer funds to another account Transfer funds to another account

Differences Bank B Bank B –Enter employee information via web –Issue card with account number and mail directly to employee –Issue account number which is banking information used by State of Missouri –Account number does not change if card is replaced. –Transcheck® available if card is not received

Problems Encountered Delivery of the cards Delivery of the cards –Mail delayed for Christmas Season –One bank would not deliver to P O Box –P O Box delivery takes longer –Mail delivered to undesirable neighborhoods –Employee not having a permanent address –Employee throws away – junk mail –State of MO does not require address to be same as one on payroll file. Employee submits multiple applications Employee submits multiple applications

Statistics Approximately 63,000 State employees Approximately 63,000 State employees Prior to policy change, we had over 4,000 paper checks issued each pay period Prior to policy change, we had over 4,000 paper checks issued each pay period January 15, paper checks January 15, paper checks 850 pay cards issued within two months 850 pay cards issued within two months By March 14, 2008 pay date, we are at 97.6% participation for direct deposit and paycards combined. By March 14, 2008 pay date, we are at 97.6% participation for direct deposit and paycards combined.

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