At least 17.6% of Virginia’s unemployment benefits during the last three years were paid in error. That’s according to the U.S. Labor Department … which has targeted the Commonwealth and a handful of other states for special monitoring in an effort to decrease the rate of mistakes. 85% of the overpayments were caused by three errors.
The 3-year total of overpayments was $434-million. 11% of claimants collected benefits after going back to work. 12% were paid before notice was received that their work separation made them ineligible. 62% were paid even though it could not be validated that they met work-search requirements.
Attorney General Ken Cuccinnelli said his office will be advising the Employment Commission about the problem. But he adds that employers had to pay higher taxes to the state trust fund after it was depleted last year. “ We do have businesses that are strained. They’re struggling to keep on the black side of the ledger versus the red side of the ledger. And if we can keep their tax rate from rate from artificially rising—improperly rising—we’ll leave them with more assets to grow, to invest, and to create more jobs,” said Cuccinnelli.
The state budget had to include funds this year to repay interest on federal loans given to keep paying jobless benefits. The state does try to recover improper payments, but it’s now required to submit a strategic plan and be monitored until the error rate falls below 10%.
–Anne Marie Morgan
Virginia Public Radio 