Monday, July 09, 2012

Are You Kidding Me?

MR, this one is going to piss you off royally!

From this source (hat tip to Randy's Roundtable):
Government overpaid $14 billion in unemployment benefits

Don't spend that unemployment check too fast. The government might ask you to pay it back.

Overpayments are a rampant problem in the unemployment insurance system. The federal government and states overpaid an estimated $14 billion in benefits in fiscal 2011, or roughly 11% of all the jobless benefits paid out, according to reports from the U.S. Labor Department.

Of the states, Indiana was the worst offender, making more improper payments than it did correct ones.

Now, the U.S. Department of Labor and the states are in the midst of a massive effort to try to recoup some of their lost funds and avoid future overpayments.

Where does the money go?

The vast majority of unemployment benefits do go to people in need. In 2010 alone they helped keep 3.2 million Americans out of poverty, according to the Census Bureau.

But of the overpaid funds, most end up in the hands of three types of people: Those who aren't actively searching for a job, those who were fired or quit voluntarily, and those who continue to file claims even though they've returned to work. Any of those circumstances would make a person ineligible for benefits.

The overpayment typically results from an administrative error made either by the government, the employer, the worker or a combination of the three.

In much rarer situations, people deliberately defraud the system, using fake documents or identities. Common scams involve prison inmates, illegal immigrants or even the deceased....

2 comments:

midnight rider said...

People on unemployment get a bad enough rap without this kind of nonsense going on. Although it's no surprise and goes hand in hand with the rise in disability claims.

Personally, I think they should all get off the couch turn onff their Soap Operas and go out and get one of those jobs that doesn't exist.

Always On Watch said...

MR,
If there is so much fraud going on, the fraud should stop so that those who are fulfilling the parameters to collect unemployment can do so. Sheesh.