Benefit Payment Control Unit (BPCU) 200 Folly Brook Blvd. Wethersfield, CT 06109 To ask questions about your overpayment and receive an email response: Click here. Contact Information: Telephone Number: (860) 263-6325 Fax Number: (860) 263-6343 Unemployment Fraud Hotline: 1-800-894-3490 Report Unemployment Fraud Email Address: DOL.BPCU@ct.gov

• Click here for Fraud Prosecution Program details and how to report suspected fraud.

Overview

The Benefit Payment Control Unit (BPCU), governed by Section 31-273 of the Connecticut General Statutes and Sections 31-273-1 to 31-273-9 of the Regulations of Connecticut State Agencies, is responsible for the prevention, detection and recovery of overpaid unemployment compensation benefits.  There are two types of overpayments: fraud and non-fraud.  A fraud overpayment is the result of wilful misrepresentation or wilful nondisclosure of information provided by an individual in order to obtain unemployment compensation benefits. 

Methods used to prevent or limit fraud overpayments include the use of sophisticated computer cross-matches with state and federal databases, return-to-work reports, video surveillance, and tips from the public.

Overpayments to individuals can also result from an employer protesting an eligibility issue, or from the reversal by an appeals referee of an earlier decision to grant benefits.  An individual who fails to seek work or who fails to properly maintain their eligibility status during the claim series can also be charged with an overpayment. Such overpayments are referred to as “non-fraud” overpayments.

When a potential overpayment has been detected, staff will conduct a full audit of the weeks involved.  Once the audit is completed, a letter will be sent to the individual explaining the potential overpayment as well as the individual’s rights and responsibilities.

After an overpayment decision becomes final, immediate repayment of those benefits is required.  If payment is not made immediately, the Labor Department may employ one or all of the following methods to recoup the overpaid amount.

• Voluntary Repayment – The Labor Department accepts personal checks, money orders and cash. Make checks and money orders payable to: ADMINISTRATOR UNEMPLOYMENT COMPENSATION.
  
  Payments may be sent to:

• NEW! Credit Card/E-Check - You may also pay your overpayment immediately using your Visa, Master Card, American Express, Discover, Debit Card, or E-Check at (Official Payments link). Please note: A convenience fee will be charged by the service provider. You will be informed of the amount of the convenience fee during the transaction and you may elect to cancel the transaction.
  Learn More.

• Offsets – A full or partial deduction directly from the claimant’s weekly benefit applied toward the overpayment.

• Administrative Penalty Weeks – Penalty weeks are assessed to all fraudulent overpayments established prior to October 1, 2013, and are imposed in addition to the actual amount of the overpayment. They are essentially forfeited weeks, where you file your weekly claim, but receive no money. These penalty weeks do not reduce the balance of the original overpayment.

• Monetary Penalties - A monetary penalty is assessed to all fraudulent overpayments established on or after October 1, 2013 and is in addition to the actual amount of the overpayment. For the first fraudulent overpayment one will have to pay a penalty in the amount equal to 50% (1/2) of the overpayment amount and for any additional fraudulent overpayments one will have to pay a penalty equal to the amount of the overpayment (100% of the overpayment). These payments do not reduce the balance of the original overpayment.

• Wage Garnishment – A court order that is issued against the individual's earnings and applied toward the overpayment balance.

• State and Federal Tax Refund Intercepts – Agreements with the State Department of Revenue Services and the U.S. Treasury allows for the intercepting of tax refunds to be applied against non-compliant overpayments.

• Interest Charges – For fraudulent overpayments, if found to be in non-compliance of the law, interest at a rate of 1% of the current balance will be charged each month.

• Federal Tax Refund Intercepts - In an effort to recover outstanding fraudulent overpayments, the Connecticut Department of Labor (CTDOL) participates in the Treasury Offset Program (TOP).  TOP is a partnership with the Internal Revenue Service and the U.S. Department of Labor which allows the CTDOL to request assistance from the IRS to intercept a taxpayer’s federal income tax return or federal wages.

What is Unemployment Insurance Fraud and What is the Department of Labor Doing About it?

Unemployment Insurance fraud is any wilful misrepresentation or wilful nondisclosure of information made by an individual(s) to receive unemployment benefits the individual(s) would otherwise not be entitled to.

The Connecticut Department of Labor has implemented several initiatives to combat unemployment fraud, including: a 24 hour fraud hotline, online fraud reporting and an aggressive surveillance program.  Unemployment fraud is a very serious and costly offense that can carry severe repercussions including: repayment, administrative penalties, monetary penalties, interest charges and prosecution.

• Reporting Fraud – Information received through the fraud hotline and on-line reporting will be reviewed and investigated for potential fraudulent filing. If you suspect unemployment fraud, please “click” on this link for more details.

• Surveillance - Surveillance methods are used to capture potential fraud cases using information from public tips. Once the surveillance report is received, a determination will be made if the individual is fraudulently filing for benefits.  The agency stops benefits as appropriate and sets up overpayments. This is an important step in helping to improve the integrity of our benefits system.