Congressional Delegation & Malloy Announce Federal Grants To Upgrade State's Unemployment Computer System, Continue Fraud Prevention Program

Press Release

The members of Connecticut's Congressional delegation and Governor Dannel P. Malloy today announced that the Connecticut Department of Labor (CTDOL) has been awarded over $2.6 million in grants from the U.S. Department of Labor (USDOL) - $2.1 million of which will be used to replace its outdated unemployment insurance computer system, while the remainder will be used to continue a successful fraud prevention partnership program.

"Upgrading our information technology systems to function more efficiently and effectively no doubt boost our efforts to reduce costs, recover improper payments, and ensure payments for those who are in need of these services," Malloy said. "Our state has one of the best track records in the nation when it comes to preventing unemployment insurance fraud, in part due to our successful "Chasing Cheaters' campaign to identify and prosecute individuals who are committing this type of fraud. I thank Secretary Perez and the U.S. Department of Labor for this grant that will help our state modernize these crucial services."

"Unemployment insurance is a critical safety net that helps keep workers and their families financially afloat while they search for new work," the members of Connecticut's Congressional delegation said in a joint statement. "This $2.6 million federal investment will help ensure that unemployment insurance is disbursed quickly, efficiently, and only to those truly eligible to receive this vital assistance. We welcome the United States Department of Labor's investment and applaud the state for their commitment to strengthening this important program."

The grant will gives Connecticut the opportunity to join an existing multi-state partnership with Maine, Rhode Island, and Mississippi to upgrade the current mainframe systems now in use. The states, working as a consortium, will develop a new system that in the future will replace outdated mainframes with new systems that provide more online capabilities.

In Connecticut, the goal is to process claims more quickly and efficiently, and allow most first-time filers to apply online without the assistance of a DOL Customer Service Representative. Currently, only about one percent of these first-time claims can be completed online with no assistance. The system will also be able to handle the appeal process more quickly, in that the online system will triage the various questions that must be determined to decide if an unemployment insurance decision can be appealed. This will shorten the appeal process and thus, if a person is eligible to collect, they can collect more quickly.

"Since the state's "Chasing Cheaters' program began, over 110 people committing fraud have been arrested, with more than $900,000 recovered, while preventing thousands of additional dollars from being stolen through fraudulent claims," State Labor Commissioner Sharon M. Palmer said. "We appreciate the opportunity to continue our successful partnership with the state's Division of Criminal Justice to help ensure the integrity of Connecticut's unemployment insurance program."