1. Overview
January 11, 2011

2. FY 2010 National UI Benefit Payment Accuracy
UI benefits paid: $ 63.5 Billion
Benefits Overpaid: $ 7.1 Billion (11.3%)
Top Causes of Overpayments:
Working & receiving benefits
29.3% of overpayments
$2.1 Billion Dollars
Incorrect Initial Eligibility Determinations (Reason for job loss)
19.1% of overpayments
$1.4 Billion Overpaid due to Separation issues

3. Initial Eligibility Determination Performance
Separation Determination Quality FY 2010
Determinations scoring 95 points or more: 65.6%.
(Criterion 75%)
31 States failed to meet the quality criterion
Separation Determination Timeliness FY 2010
Separation Determinations issued within 21 Days: 55.5%*.
48 States did not meet the 21 Day timeliness for Separations
*Nonmonetary Determination Timeliness ALP = 80%

4. UI SIDES History
USDOL, States, Employers and Third Party Administrators very interested in improving timeliness and quality of reasons for job loss information required to determine initial eligibility.
NASWA UI Committee Work Group
States, Employers, and TPAs Worked together in developing format and concept of operation
Tested the format and approach. “Low Tech Test”
(GA, WI, CO, ADP, TALX, JC Penney, GM, & Kelly Services)
UI SIDES Development Consortium:
(GA, WI, CO, OH, UT, NJ, ADP, TALX, JC Penney)

5. Goals Secure electronic exchange
Standard format for data w/ edits and validations
Quality and timely information.
Significant % of determinations possible made w/o further contact (i.e. telephone).
Single point of contact for both states and employers
Fewer resources needed to gather information.
Reduce follow-up phone calls
Fewer unnecessary appeal hearings and overpayments

6. What is SIDES? Computer to computer exchange: Single Point of Contact
Web Services - SIDES Broker
Web Site – SIDES Employer Web Site (SEW)
Single Point of Contact
Secure exchange
Authentication Certificates
Encrypted records and files
Data Standards
Standard Formats for data elements
Edits, Validations, Business Rules
Technical Standards
Open design following industry standards
Compliant with W3 standards

7. SIDES Applications Concept

8. General SIDES Infrastructure

9. SIDES – Web Service Applications

10. SIDES – Web Site Applications2 1 3 4

11. SIDES Broker and Website
Secure authentication and data encryption
Edits, validations and business rules
Error handling / confirmation of receipt
Metrics reporting and logging
Transaction time stamp (Eastern Standard Time)
Data Center facility:
99.9% System Availability
Secure and redundant services
24 hour system administration and support desk
Disaster recovery and COOP services
Metrics reporting and logging
Administrative functions (web application)
Roles based security to the Broker
Parse and Validate Files
Parsing the file will examine its contents to assure business rules and validations are met
Certificates and Keys (security / encryption)
Error Handling / Confirmation
Return a file listing all non-conforming records to sender
Return a Confirmation message of successful file transmission
Staging Area
Files are encrypted and held for pick up by entities at least once a day. Files are stored on Broker 7 days, then purged.
Files can be forwarded to entities
ICON Facility 99.9% Availability
(ACS’ Data Center, Blythewood, SC – currently supports UI ICON)

12. Efficiency with UI SIDES
Efficiencies:
Standard Format
Electronic storage & retrieval
Reduced scanning/imaging expenses
Reduced staffing to handle paper forms
Faster transit times (outbound and inbound)
Guaranteed receipt
Better information –
Fewer follow-up calls to employers

13. UI SIDES – Schedule SIDES Infrastructure State Systems
Broker in production – February 2, 2010
Web site – Ready for Production
State Systems
Utah In Production, February 2, 2010
Colorado In Production, January 3, 2011
Ohio In Production, December 15, 2010
New Jersey Pending
Georgia Feb 2011
Wisconsin March 2011

14. UI SIDES – Expansion Round 2 -10 new States are joining SIDES
Arizona Michigan
Connecticut New York
Iowa North Carolina
Kansas Rhode Island
Maryland Texas
Round 3 – 6 new States
Kentucky Mississippi
North Carolina Oregon
South Carolina Tennessee

15. UI SIDES – Employer/TPA Schedule
Employers/TPAs already involved:
ADP – In Production February 2, 2010
TALX UCeXpress – March/April 2011
JCPenney – 2011
Additional TPAs
Paychex Inc.
Barnett Associates, Inc.
J Dunn Inc.
Corporate Cost Control
Recruitment of additional Employers/TPAs

16. Future Exchange Formats
Wage Verification (Completed and under going Testing)
Monetary and Potential Charges (Development - February 2011)
Eligibility Determination (Preliminary Format)
Appeal Decisions (Preliminary Format)
Monetary Determination (Preliminary Format)
Other Exchange Formats (File an Appeal/Protest, Wage Records etc.)

17. Governance
SIDES is operated by CESER, but the governance is done in partnership with States and Employers trough two committees, Executive and Operations

18. Executive Committee – Structure and Term
Chair – NASWA Board Member
Consists of five state representatives appointed by NASWA selected from among the participating UI SIDES states
Term
3 year terms
Duties
Develop the SIDES annual budget and financial plan including the fee structure for states covering the operation of SIDES
Develop policy, provide overall guidance for the project, resolve certain disputes, and make final determinations on whether to implement major system changes or enhancements
The Executive Committee is chaired by NASWA, and consists of 5 (voting) states, and 3 (non-voting) made up from NASWA, USDOL and the SIDES Business Manager (who could be NASWA/CESER, or other)

19. Operations Committee – Structure and Term
Consists of four employer/TPA representatives and five state representatives appointed by NASWA from the participating entities
3 year terms
The Chair is selected from among the state representatives
Duties:
Function as the formal decision-making body on behalf of the participating SIDES entities (states, employers and TPAs)
Provides guidance and input for all program and business issues, input on proposed new functionality and features, and guidance and input on technical issues
The Operations Committee may, from time to time, establish ad hoc workgroups and/or committees, ask committees to work jointly to address common issues of concern and may, upon mutual agreement, establish other standing committees
Any decision of the Operations Committee can be appealed to the Executive Committee
The Operations committee is chaired by a state representative and has 12 members (4 employer/5 state (voting) plus 3 non-voting from USDOL, NASWA and the SIDES Business manager

20. Demonstration