Louisiana UI Integrity Task Force October 24, 2011

Integrity Initiative Developed in 2010 Plan developed and management structure put in place to execute plan Reduce the percentage of improper payments to below 10% Mission Statement: Prevent, Detect, and Materially Reduce Improper Payments Mission Objective: Reduce Improper Payments to less than 10% LWC UI Integrity

 Work Registration Monitor system rejects and further automate to reduce errors Work in partnership with the state of Texas to develop and implement work registration pilot for interstate claimants Develop and implement Reemployment initiative in coordination with the Office of Workforce Development and Local Business and Career Solutions Centers  Benefit Year Earnings (BYE) Automate NDNH cross-match and follow-up activities Utilize predictive analytics to target potential fraud and overpayments in coordination with the development of a data warehouse with state agency partners Benefit Payment Control (BPC) staffing and organization capacity Prosecution through USDOL Office of Inspector General, and Louisiana Attorney General’s Office Additional communication, messaging, and outreach 3 Overview of Integrity Plan

 Separations Implement SIDES Implement a web-based employer portal to accept wage records electronically Automate and track ALJ Reversals Utilize the Claims Review Team to reduce application errors and support fact- finding activities Implement Experian QAS software to improve data validity Establish ongoing Peer Reviews Implement Formal Supervisory Reviews  Work Search Issues Implement Work Search and Eligibility Review LWC Reemployment pilot and Statewide roll out of LWC Reemployment Model 4 Overview of Integrity Plan

Pending arrests with the OIG and AG - multiple employees with single employer (BYE) Automation of NDNH contract initiated Louisiana Fraud Initiative continues Reemployment Pilot continues Implementation of Integrity SBR Employer and Claimant communications strategy contracts initiated Hired additional 18 staff to support Overpayments and Investigations Contractor for Employer Web Portal begins today Current Activities

Since 2010, LWC has reduced the improper payment rate by 47% –89% Improvement in work registration –43% Improvement in separation Issues –38% Improvement in work search –19% Improvement in BYE Addressed work registration through improved automation Implemented automated stops related to employer separation information (77,110, 152) Established employer liaison and UI Employer Advisory Committee 50 fraud arrests since April 2011 for the UI Fraud Task Force in partnership with the Attorney General Successes to Date

Killer App(s) Automation of Work Registration Reduced work registration errors by 89% since implementation in Fall of 2010 All UI applicants are automatically registered in Workforce system (LaVos) Three job prospects immediately sent to applicants who provide address Separation Stops of Form 77, 110 and 152 Places immediate stop on claims with employer protest Significantly reducing overpayments related to claims indicating “lack of work” which previously would have been automatically paid until the issues resolved Louisiana Fraud Initiative - Predictive Analytics and Social Networking MOUs with multiple agencies including Departments of Corrections, Revenue, Secretary of State, Children and Family Services for integrated database Uses predictive analytics and social networking to identify targeted lists for further investigation Kick-start phase and staff efforts resulted in more than $1.5M in SUTA Dumping Phase 1 to focus on improper claims, Phase 2 to focus on UI/Worker’s Comp Apps to Watch Interstate Work Registration Pilot with Texas Error Trend Tracking and Database

INTEGRITY We Got DAT! Questions? Mark Hodges: Margaret Mabile: 8 Summary and Q&A