For immediate release: Jul 16, 2010 01:00:00 EST
Posted by: [DWD]
Contact: Marc Lotter
Phone: 317-232-3396

DWD Seeks Repayment of Stimulus Unemployment Payments

INDIANAPOLIS - The Indiana Department of Workforce Development (DWD) will next week notify 36,000 Hoosiers who collected unemployment benefits, but were later found ineligible, about the need to also repay the $25 weekly "stimulus" payment. The U.S. Department of Labor is requiring DWD to seek repayment of these funds. DWD previously billed these individuals for the main unemployment benefit.  These invoices cover the extra $25 per week. Approximately half of those affected only collected for one week and will receive a bill for the minimum amount of $25. The average bill is approximately $120 per person.

"DWD has a legal obligation to collect every dollar in unemployment benefits paid to people who weren't eligible to receive them," said Marc Lotter, Communications Director of the Indiana Department of Workforce Development. "We will work with every Hoosier receiving this notice to facilitate a repayment plan."

These notices are a normal part of the unemployment process.  Federal regulations require states to begin paying unemployment claims as soon as an individual is found eligible. If a person is later ruled ineligible, usually due to claimant error or a successful appeal by the former employer, states stop payment and begin seeking repayment. The total amount to be collected is approximately $4.4 million.

DWD works with individuals to recover these monies. Should an individual not arrange payment, the department will intercept future state tax refunds, lottery winnings and a portion of future unemployment claims until the amount is fully repaid.

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