Tony Evers, Governor
Caleb Frostman, Secretary
Department of Workforce Development
201 E. Washington Avenue
P.O. Box 7946
Madison, WI 53707-7946
Telephone: (608) 266-3131
Fax: (608) 266-1784
FOR IMMEDIATE RELEASE
Friday, May 1, 2020
CONTACT: DWD Communications, 608-266-2722
On the Web: http://dwd.wisconsin.gov/news/
On Facebook: http://www.facebook.com/WIWorkforce
On Twitter: @WIWorkforce
The Department of Workforce Development released an update today on its efforts related to remedying the situation related to overpayments of unemployment insurance benefits paid to 2,340 claimants at US Bank yesterday.
DWD experienced a technological malfunction that disbursed double Federal Pandemic Unemployment Compensation (FPUC) direct deposit payments processed to 39,181 claimants late Wednesday night. DWD learned of the error from a claimant who reported the overpayment around 11:15 a.m. Thursday and took action to reverse all direct deposits by 1 p.m. Only deposits made to US Bank accounts were processed before DWD recovered the payments because those who do not bank at US Bank were scheduled to receive their direct deposit Friday.
DWD confirmed a programming error Thursday afternoon and worked with US Bank to redistribute retroactive FPUC benefits Thursday night so all claimants received benefits Friday morning. This includes US Bank customers and customers of other financial institutions. US Bank also agreed to waive any overdraft charges on affected members' accounts. The Department continues to evaluate the system to identify and address any outstanding issues.
FPUC is a new temporary supplemental benefit program created by the federal government that offers claimants an additional $600 per week. DWD is processing $425,000,000 in retroactive weekly payments. $108,332,461 has processed successfully since Tuesday. Final payments are scheduled to be paid by May 7.
The Department of Administration will conduct a comprehensive management audit of the UI payment programs to ensure similar issues do not happen again.
State unemployment benefits are paid by the UI Trust Fund, which is funded through employer payroll taxes. FPUC benefits are funded by the federal government.