Oregon Employment Department

Overpayment Recovery Unit

A study of practices and processes to increase recovery

Overpayment Recovery Unit

November 2009-Start of process improvement

• Issue with private sector/government• Majority of time is spent ‘Working-in-the-Business’• Running on the treadmill trying to keep up and you

cannot jump off• The need?• ‘Work-on-the Business’• Look at your processes/practices• Why do you do things the way you do?

Processes/Practices Researched and Improved

• Staffing structure• Suspended Overpayments• Warrant and garnishment process• Credit Card payment process• Team lead• Standardization of training• Reducing tracking codes• The Future of Recovery at OED

Organizational Chart

• November 2009• 10 Revenue Agent 1’s-digits 0 thru 9• 2 Revenue Agent 2’s-BK’s & Convictions• 2 Office Specialist 1’s-Support staff• Supervisor

• December 2009• 11 Revenue Agent 1’s-digits 0 thru 9 & suspended accounts• 1 Revenue Agent 2-BK’s & Convictions• 2 Office Specialist 1’s-Support staff• 1 Team Lead• Supervisor

Suspended Overpayments• Auto suspend after 3 years and no payment

activity• What we found out?• Many accounts in suspense were warranted had

assets and we were not working them• The extra RA1 due to Organizational change

allowed us to devote collection activity to these accounts.

• Start of collection activity-December 15, 2009

Suspended Overpayment Results

• Jan. 15, 2010 $14,722• January 30, 2010 $24,305• June 30, 2010 $419,771• January 3, 2011 $775,205• SOIL(State tax refund intercept) $958,524• CY 2011 $657,143• Inception thru Feb. 1, 2012 $1,505,166• RA1-Suspended accounts, refunds, misapplied payments

and SOIL posting-50/50

Recovered

Warrant & Garnishment Process

•12 to 15 Step Process from initiation of Civil Action until Garnishment Response

•Process required maximum effort on the unit’s part for a 30-60 day response

•2009-10,000+ Warrants and Garnishments for $3.5 million in recovery

Current Civil Action Process

•3 Steps

•From initiation of Civil Action to Response is 10-20 days

•2011-15,677 Warrants and Garnishments for $5.2 million in recovery

•Each month for last 4 months-$500K+

•On pace to recover $6 Million + for 2012-Doubled since 2009

Civil Action Recognition

Civil Action Recognition

Credit Card Recovery Process

• 2009 Philosophical Change

• Credit Card payments took top priority

• $$ in the Bank

• Included Cashier’s Cheques to boost individual totals

• Trophy and certificates each month

Credit Card Recovery Recognition

Credit Card Recovery Results

• 2009-$1.9 Million• 2011-$3.1 Million-40% increase• 2011-Average number of transactions/month-1,143• January 2012-$339K and 1,295 transactions• February 2012-$413K and 1,523 transactions• Records for unit, however, at 3 minutes per call it

equates to 76 hours.• Implemented recurring payments in November 2011-

currently have 189 recurring accounts established.

Overall Recovery Recognition

Introduction of Team Lead• January 2011 introduced Team Lead• Responsibilities include:• Escalated calls• Training• New employee orientation• Assessing work flow/processes• Assigning work load• Warrant & garnishment approvals• Assist with monthly reports

Standardization of training• Our current policy/training manual

Standardization of Training

Standardization of Training

Standardization of training

Standardization of training

Queue Management

• Follow-Up Codes

• 00-LIQUIDATED-ZERO BALANCE

• 99-Check DOJ status

• Everything in-between: overwhelming

• Currently using 45 Follow-up Codes

The Future of Recovery at OED

• Process Improvement Group• OED Website payment processing• Predictive Dialer• UC TOP

The Future of Recovery at OED• Proud to be a P.I.G.-Process Improvement Group• Meet bi-weekly to discuss process improvements• Ideas come from the unit• Decide which ideas have merit• Prioritize them• Implement them• Train on them• Update the Policy Manual to include the new

process

The Future of OPR at OED• On-line payment ability at OED website• Credit card/ACH payments• Designed for claimants and employers• Move away from the need to have one on one

conversations with claimants to take a payment• Free RA’s time to skip trace and set up voluntary

payment arrangements• Make it easy for claimants and employers to pay us-

24/7

The Future of Recovery at OED

• Predictive Dialer• Washington currently using this system since

2001• Reduce the number of out-bound calls and

increase the number of in-bound calls• Program to make contact with us and payment

reminder messages• Track the results from the predictive dialer

The Future of Recovery at OED

• Participation in UC TOP• Currently working on Safeguard Procedure

Report• Agency Profile submitted• Test in September 2012• Implement by Tax Year 2013• $?? Million to Submit• Recovery Expectations: $3-5 million per year

Contact information

• Oregon Employment Department• Kevin McCarron• Overpayment Recovery Manager• UI Benefits• (503)947-1375• (503)947-1376 FAX• Kevin.e.mccarron@state.or.us