1. Treasury Offset New York’s Experience and Lessons Learned 2012 UI Integrity Summit UI Integrity – YOU Make it Happen!

2. Willful overpayment Title 7 of New York’s Unemployment Insurance Law covers all claim issues. A copy is available here: http://www.labor.state.ny.us/ui/dande/article18.shtm. Section 597(2)(c)(3) states: Notwithstanding paragraph (b) of this subdivision, adjustments to the claimant's benefit rate and adjustment to the experience rating charges to the employer's accounts will be retroactive to the beginning of the benefit claim in the following circumstances: (3) the amount of the previously established benefit rate was based upon the claimant's willful false statement or representation.

3. Willful overpayment Section 597(4) states: Whenever a new determination in accordance with the preceding subdivision or a decision by a referee, the appeal board, or a court results in a decrease or denial of benefits previously allowed, such new determination or decision, unless it shall be based upon a retroactive payment of remuneration, shall not affect the rights to any benefits already paid under the authority of the prior determination or decision provided they were accepted by the claimant in good faith and the claimant did not make any false statement or representation and did not willfully conceal any pertinent fact in connection with his or her claim for benefits. Therefore: Any failure to act in good faith, or any false statement or representation, or any concealment of pertinent facts would be considered fraud!

4. Debtors Yes, they are debtors, not claimants Before TOP –Benefit offset –Cash –State Offset (taxes, employee wages) –Judgments –Criminal convictions How to enable better debt collection?

5. The Road to TOP YOU make it happen (with the help of friends) Planning Initial Steps – quick hit letters and $$$ Programming, Testing, Programming, Testing, Testing, Testing IRS compliance

6. IRS Compliance Quick primer on working with the IRS It is worth it – both for tax and benefit purposes Basic agreement, Implementing agreement Safeguard Procedures and Activity Reports (Documentation) Audits, Reviews, Corrective Action Plans Need and Use Training The concept of blurring Data confidentiality

7. The New York Model Who to refer and how much to refer? Staffing Simple and cheap (if archaic) transfers of data Small tools - big reward

8. The Model

9. Add-ons and lessons Communicating with Treasury –Always there to help –Have the right contact for the issue Communicating with debtors –Have backup –Encourage compliance –Right balance

10. Speed bumps and process snags Offset refunds Bankruptcies Address updates/due diligence Hearings and appeals System issues (leave time)

11. Results As of February 22, 2012 – –Voluntary compliance. $7.5 million. –Benefit Offsets. $1.1 million. –TOP recoveries. $32.2 million. Total: $40.9 million. From every state. 43,800 telephone calls handled by 11 staff.

12. Moving forward New Penalties under TAA Keeping files current Fixing bugs

13. Data model TOP Letter samples Handouts

14. Thank you! James A. Konicki, Manager NYS Department of Labor Unemployment Insurance Division Tax Program Analysis and Support 518-457-5713 james.konicki@labor.state.ny.us We are here to help and are available