1. UI Integrity/Improper Payments Federal/State Task Force State Presentation: South Dakota October 11, 2011

2. 2 Area of National & State Focus: Benefit Year Earnings (BYE) Root Causes Identified: Agency Causes Deductible income documented incorrectly. Incomplete filing instructions. IVR questions. Claimant Causes Earnings unreported and misreported. Reporting net vs. gross income. Misunderstanding of reporting week paid vs. week earned. Employer Causes Failure to report to New Hire Reporting Center. Failure to respond to request for information.

3. 3 Area of National & State Focus: Benefit Year Earnings (BYE) Planned action(s) to address: Daily review of weekly earnings reported with amounts under $25. Enhance current New Hire and Wage Cross-match programs. Generate a letter to claimant regarding any New Hire “hits.” Principal milestones: Goal for implementation of letter to claimant is 12/31/11. The remaining will be assigned.

4. 4 Area of National & State Focus: Separations (SEPs): Root Causes Identified: Agency Causes Misapplication of State statutes. Failure to address gap in filing on weekly certifications. Claimant Causes Incorrect reason for separation given. Failure to report a separation. Employer Causes Failure to respond timely to request for information.

5. 5 Area of National & State Focus: Separations (SEPs): Planned action(s) to address: Implement intelligent fact finding. Design and develop interface with SIDES webservice. Modify IVR to cover gaps in filing. Principal milestones: Goal for implementation of SIDES and intelligent fact finding is 9/30/2012. Goal for modifications to IVR is 3/31/2012.

6. 6 Area of National & State Focus: Work Search Root Causes Identified: Agency Causes Filing instruction overload. Improper exemption from work search and registration. Claimant Causes Failure to make an acceptable work search. Misunderstanding of work search requirements. Employer Causes Failure to provide accurate information.

7. 7 Area of National & State Focus: Work Search Planned action(s) to address: Periodically change the work search verification week. Generate work search verification result letter to claimant. Generate work search verification request to employers. Principal milestones: Goal for implementation of letter to claimant is 12/31/2011. The remaining will be assigned.

8. 8 Everybody Owns Integrity Strategies to Support Owning UI Integrity: Encourage every staff member to understand the role they play in UI integrity. Presentation to staff highlighting how each individual plays the role in achieving and maintaining integrity. Hold cross-functional quality improvement meetings to review data, strategies and recommendations for reducing overpayments. Display performance measures for staff to view. Share results of BAM, BTQ and Appeal information.

9. 9 Communications Strategies: Review and rewrite current Benefits Rights and Responsibilities information booklet. Implement a claimant/employer messaging campaign. Training for staff. Break benefit rights and responsibilities into segments during claims taking. Evaluate the informational messages on the IVR and internet.

10. 10 Summary and Q&A Questions? State Contact for follow-up: Julie Albano julie.albano@state.sd.us Phone: 605.626.7649