[Federal Register Volume 61, Number 201 (Wednesday, October 16, 1996)]
[Notices]
[Pages 53938-53939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26493]


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DEPARTMENT OF LABOR

Proposed Information Collection Request Submitted for Public 
Comment and Recommendations; Unemployment Insurance Benefit Accuracy 
Measurement Program

ACTION: Notice.

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SUMMARY: The Department of Labor, as part of its continuing effort to 
reduce paperwork and respondent burden, conducts a preclearance 
consultation program to provide the general public and Federal agencies 
with an opportunity to comment on proposed and/or continuing 
collections of information in accordance with the Paperwork Reduction 
Act of 1995 (PRA95) (44 U.S.C. 3506(c)(2)(A)). This program helps to 
ensure that requested data can be provided in the desired format, 
reporting burden (time and financial resources) is minimized, 
collection instruments are clearly understood, and the impact of 
collection requirements on respondents can be properly assessed. With 
this notice, the Employment and Training Administration is soliciting 
comments concerning a proposed pilot test of collecting information on 
the accuracy of denials of Unemployment Insurance (UI) benefit 
eligibility. A copy of the proposed information collection request can 
be obtained by contacting the employee named below in the contact 
section of this notice.

DATES: Written comments must be submitted on or before December 16, 
1996.

    Written comments should:

--Evaluate whether the proposed collection of information is necessary 
for the proper performance of the functions of the agency, including 
whether the information will have practical utility;
--Evaluate the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used;
--Enhance the quality, utility, and clarity of the information to be 
collected; and
--Minimize the burden of the collection of information on those who are 
to respond, including through the use of appropriate automated, 
electronic mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.

ADDRESSES: Burman H. Skrable, Unemployment Insurance Service, 
Employment and Training Administration, U.S. Department of

[[Page 53939]]

Labor, Room S-4522, 200 Constitution Avenue, N.W., Washington, DC 
20210, 202-219-5922 (this is not a toll-free number); FAX, 202-219-
8506; Internet: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Since 1987, all State Employment Security Agencies (SESAs) except 
the Virgin Islands have been required by regulation at 20 CFR 602 to 
operate a Benefits Quality Control (BQC) program to assess the accuracy 
of their UI benefit payments. The Department's authority is found at 
Sections 303(a)(1), 303(a)(6) and 303(b)(1) of the Social Security Act. 
The methodology of this program, renamed Benefit Accuracy Measurement 
(BAM) in 1996, requires each State draw to a weekly sample of UI 
payments. Annual samples presently average slightly over 800 cases per 
State, with a range of 480 to 1800. A specially trained staff of 
investigators reviews agency records and contacts the claimant, 
employers and third parties to verify all the information pertinent to 
the benefit amount for the sampled week. Using the verified 
information, the investigators determine whether the benefit payment 
were proper or improper in accordance with State law and policy. Any 
differences between the amount BAM determines proper and the actual 
payment is an underpayment or overpayment error and is coded into an 
automated database, which resides on each State's computer. Data on 
error types, causes and responsibilities are also entered into the 
database. This information is used by the State and DOL to estimate the 
extent of mispayments, monitor program quality, guide possible future 
program improvements, inform system stake-holders and perform various 
policy analyses. The program is operated under Office of Management and 
Budget (OMB) approval number 1205-0245; approval expires September 30, 
1999.
    To date, the nationwide BAM program has only assessed the accuracy 
of decisions to pay UI benefits. In 1986-87, five States measured the 
accuracy of decisions denying UI benefits eligibility using the BQC 
methodology in a one-year pilot test.
    The test covered monetary denials and nonmonetary denials at the 
separation and nonseparation decision levels. Although most pilot 
States showed relatively high rates of error in their denial 
determinations, resource considerations and other priorities precluded 
the Department from expanding the pilot effort or expanding the BQC 
program to include denials. Since that time, however, the Department 
has been urged by several groups to measure denied UI benefit claims' 
accuracy in the States. The groups have included organized labor, 
employee rights legal support groups, the Department's Office of 
Inspector General, and, most recently, the Vice President's National 
Performance Review.
    In fall 1995, after a two-year effort, a joint workgroup of senior 
SESA managers and Federal staff recommended several changes in the way 
UI operational performance was measured and improved. The Department 
has accepted most of the recommendations and is now implementing them 
under the rubric of UI Performs. One of these is to add the measurement 
of denied claim accuracy to the BAM program. Because of the time 
elapsed and changes in State environments since the first pilot, the 
Department deems it prudent to conduct a new pilot to guide 
implementation of this measure.

II. Current Actions

    This is a request for OMB approval [under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3506(c)(2)(A))] to conduct a pilot test of 
applying the BAM sample verification methodology to ascertain the 
accuracy of SESA decisions that deny UI benefits. This will be an 
operational pilot test of measuring denied claim accuracy, intended to 
identify costs and operational difficulties and develop workable 
procedures and software for a nationwide program.
    The salient characteristics of the pilot are as follows:
     Five States, selected from volunteers, representing a 
range of geography, size and eligibility provisions of State law and 
policy. The States are Nebraska, New Jersey, South Carolina, West 
Virginia and Wisconsin.
     Separate samples of approximately 200 each will be 
selected from State universes of monetary denials, and nonmonetary 
denials for separation and nonseparation reasons. Between the claimant, 
State staff, employers and third parties, it is expected that 
respondents per sampled case will average 3.3, or 1,980 per State in 
the one-year pilot.
     All samples will be investigated using the BAM procedures 
in which records are reviewed and interested parties are contacted to 
verify or obtain additional information pertinent to the decision.
     In addition, the two kinds of nonmonetary denials will be 
independently assessed using the Quality Performance Index instrument 
to see whether this records-only review is a workable alternative to 
BAM's more costly den-novo factfinding.
    Type of Review: New.
    Agency: Employment and Training Administration.
    Title: Unemployment Insurance Benefit Accuracy Measurement Program 
Pilot Test.
    Timing: May 1997-May 1998.
    Recordkeeping: States are required to follow their State laws 
regarding public record retention in retaining BAM records.
    Affected Public: Individuals; business; other for-profit/not-for-
profit institutions; farms; Federal, State, Local, or Tribal 
Governments.
    Total Respondents: 9,900 (5 States/1,980 per State).
    Frequency: Weekly.
    Total Responses: 9,900 (5 States/1,980 per State).
    Estimated Time Per Response: 1.65 hours.
    Total Burden Hours: 16,320 hours.
    Total Burden Cost (capital/startup): $457,500.
    Total Burden Cost (operating/maintaining): $413,315.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of the information 
collection request; they will also become a matter of public record.

    Dated: October 10, 1996.
Mary Ann Wyrsch,
Director, Unemployment Insurance Service.
[FR Doc. 96-26493 Filed 10-15-96; 8:45 am]
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