UI SIDES

1. UISIDES 2010 UI National Integrity Conference April 20-21, 2010

2. CY 2009 National Benefit Payment Accuracy • UI benefits paid: $ 119.6 Billion • Benefits Overpaid: $ 11.4 Billion or 9.6% • Separation issues account for 19.64% of overpayments • $1.167 MillionOverpaid due to Separation Issues • 2nd largest cause of UI overpayments.

3. Non-monetary Determination Performance • Nonmonetary Determination Time Lapse CY 2009 • Separation Determinations issued within 21 Days: 56.2%. (Criteria 80%) • 41 States fail to meet the time lapse criteria • Separation Determination Quality CY 2009 • Separation Determinations scoring 95 points or more: 66.3%. (Criteria 75%) • 35 States fail to meet the quality criteria

4. Standardized UI Separation Information • States, Employers and Third Party Administrators very interested in improving this process. • 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 Consortium: (GA, WI, CO, OH, UT, NJ, ADP, TALX, & JC Penney)

5. Project Goals • Standard electronic exchange that would be accepted and implemented. • Obtain quality and timely separation information. • Allow a significant percent of separation determinations to be made w/o further contact. • Secure method and a single point of exchange. • Reduce the resources needed to gather information. • Reduce follow-up phone calls • Avoid unnecessary hearings and overpayments • Computer to computer exchange methods: • Web Services - SIDES Broker • Web Site – SIDES Employer Web Site (SEW)

6. General Concept – SIDES Web Services

7. Send File -(Request / Response) • Standard Format - Data Elements • Required / Conditional / Optional • Coded values list(i.e.: Separation Reason Codes) • See UI SIDES Concept of Operations & Appendix E @ itsc.org • File Structure • Responsibility of each entity to create and to conform to business logic when creating the record (edits and validations) • Each record may contain up to 10 attachments • Each file may contain multiple records for one single entity • Entity contacts Broker and transmits file • Authenticated and encrypted for secure transmission

8. SIDES Broker • Parsing and Validating Data Files • 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

9. Web Services - (Request / Response) • Entity acquires the file • Picked up from Broker • Received from Broker • Parse file (edits & validation) • Send confirmation of receipt to Broker (logs) • Entities Responsibility • Store and Process data • Business rules can automatically manage data quality

10. Employer Objectives • Solvent UI System • Respond timely with complete and accurate info • Confirmation of Receipt • Reduce Phone Calls for information • Reduce Work in Process • Avoid unnecessary hearings • Protect personal information by secure transmission

11. Privacy Issues • Social Security Number • Critical identifier to safeguard • Concern of SSNs printed on forms • Concern of faxes being electronically intercepted • Emails are not safe to send SSNs • Full SSN is critical for employers to accurately identify claimants • Unemployment Insurance Program Letter 21-05 • UI SIDES offers protection of an SSN • Electronic – no paper • Single point of contact • Encryption of records and files • Authentication Certificates

12. Employer Efficiency with UI SIDES • Employer / TPA Efficiencies: • Standard format for all states • Secure exchange of information • More accurate and complete response • Fast response to claims that don’t need research • Reduce Work in Process • Gain “Request & Response” Time • Eliminate concerns of a timely receipt • Minimize Unnecessary Employer Charges • Reduce Document Imaging • Reduced need for hearings • Reduced Postage Costs

13. State Efficiency with UI SIDES • State efficiencies: • Secure exchange of information • Reduced scanning/imaging expenses • Reduced staffing to handle paper forms • Reduced Postage times (outbound and inbound) • Reduced follow-up calls with employers • Guaranteed receipt • Shortened turn-around times • Faster and easier electronic storage & retrieval • Standardized form is easier to use & provides better information

14. Savings – SWAs (e.g.)

15. Savings – TPA/Employer (large e.g.)

16. UI SIDES BROKER – Web Services

17. UI SIDES – Web Services Schedule • SIDES Software – Broker • Software development completedOct 10, 2008 • Acceptance Testing completed – January 8, 2010 • Fully Operation – February 2, 2010 • State Systems • Utah In Production, Feb. 2, 2010 • New Jersey April 2010 • Ohio April 2010 • Colorado May 2010 • Wisconsin July 2010 • Georgia Late 2010

18. UI SIDES – Web Services Schedule • Employers already involved: • ADP – In Production – Feb. 2, 2010 • Talx – UCeXpress - Late 2010 • JCPenney – 2011

19. UI SIDES – Expansion • Current 6 States represent 14% of National Workload • 12 new States have joined adding another 20.5% Arizona Connecticut Iowa Kansas Maryland Michigan Mississippi New York North Carolina Rhode Island Texas Virginia

20. UI SIDES – Expansion Increase Participation • States • Upcoming SBR for new states • Recruitment of Additional TPAs • Paychex Inc. • Barnett Associates, Inc. • J Dunn Inc. • Recruitment of Additional Employers

21. UI SIDES – Expansion • Need to expand participation • Employers & TPAs want to know: • How many States are/will participate? • States want to know: • How many Employers and TPAs are/will participate? • The larger volume reduces cost per transaction needed to operate the system. • Expand the number and types of standard data formats that can be exchanged.

22. UI SIDES • Early Development was focused on Web Services • Recent focus on Web Site addition to SIDES • States have same interface SIDES Web Service. • State can reach out to smaller Employers/TPAs • Lower volume of UI claims • Avoids cost of setting up web services • Manually access and enter data • Same format, validation and business rules • Employers/TPAs use a combination of account numbers and Access Code/PIN

23. UI SIDES – Current Schedule • SIDES Web Site Software • Requirements completed January 30, 2009 • Design completed February 27, 2009 • Software development completed May 22, 2009 • System Test completed July 31, 2009 • Final Testing and debugging - February 28, 2010 • Ready for Full Production

24. UI SIDES – Web Services & Website

34. Additional Exchange Formats • Additional standard formats for: • Wage Verification (two way communication) • Monetary Determination • Benefit Charge Notice • Nonmonetary Determination • Appeal Decision • Others….(File an Appeal, Appeal a Charge, submit Wage Records)

35. What can your state do? • Consider joining SIDES • Contact the us with your interest and get more detailed information on SIDES • Submit SBR for funding • Get SIDES on your work schedule • State commitment to join will help get more employers and TPAs to participate • For technical information on SIDES: • Go to the ITSC website www.itsc.org for the format, requirements and design documentation.

36. Contacts: • John Sharkey john.sharkey@itsc.org or 202-744-2649 • Joe Vitale, ITSC Director joe.vitale@itsc.org • SIDES Development Consortium – • Hal Bergen, Chairman SIDES and UI Director for WI Hal.Bergan@dwd.state.wi.us • US Department of Labor – ETA - OWS: • Dale Ziegler – Deputy Administrator Ziegler.Dale@dol.gov