Governor Malloy: Unemployment Insurance Benefits Go Paperless, Achieves Noteworthy Savings 

For Immediate Release: February 18, 2011

Contact: Nancy Steffens

Department of Labor, Communications Director

Nancy.Steffens@ct.gov

860-263-6535

(HARTFORD, CT) – Governor Dannel P. Malloy announced today that a move by the state Department of Labor towards a new paperless direct deposit system for unemployment insurance benefits will save the state approximately $300,000 a month on printing and mailing costs – a notable shift toward finding efficiencies that reduces state spending while improving services.  The Governor said the move is an example of the type of change he would like to carry across all state departments as he continues looking for ways to reduce costs. 

“This is absolutely the type of move the state needs to shift towards across all realms of governmental services – doing more with less,” Governor Malloy said.  “The electronic method will provide an even better unemployment insurance program for this state, while at the same time saving more than $3.6 million a year in unnecessary paper, printing and mailing costs.” 

During the month of January, the Labor Department began asking claimants to select one of two new electronic payment methods, either direct deposit to a bank account or a Visa debit card provided by Chase Bank.  Upon its launch in the first week of February, more than $45 million in electronic payments were made.  Approximately 70 percent of recipients chose direct deposit, while the remaining 30 percent selected a Chase Visa Debit Card. 

Prior to this switch, more than 140,000 checks were being printed and mailed each week – an expenditure the state no longer has to pay. 

Governor Malloy said, “The debit card and direct deposit system will benefit claimants by giving them direct access to their weekly benefit payments without the need to wait for their check to arrive in the mail.  Moving to the more secure method of electronic payments should also help eliminate instances of checks getting delayed in the mail during the holidays – or worse yet – stolen from mailboxes.” 

The Labor Department launched a special website, www.NoPaperChecksCT.com, to provide instructions on this new DirectBenefits program, including frequently asked questions, a fee schedule, and a link to the agency’s unemployment insurance site for enrollment.  Individuals can also direct any questions they may have about the DirectBenefits program to dol.directbenefits@ct.gov. 

Claimants opting for a debit card receive an information kit from Chase Bank that includes guidelines for activating their card and how to avoid charges when using it.  The Labor Department has also developed materials about the new program with enrollment tips for both direct deposit and debit card, and a list of banks and credit unions for those that need to open an account for direct deposit.