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Illinois Department of Employment Security announces direct deposit
for recipients of unemployment insurance benefits
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Agency
pursued direct deposit options to enhance reliability and safety of
unemployment payments
[AUG. 19, 2006]
CHICAGO -- In an effort to improve service,
delivery and convenience to individuals qualified for unemployment
insurance benefits in Illinois, the Illinois Department of
Employment Security has announced the availability of the direct
deposit of unemployment insurance payments statewide. The direct
deposit system places the funds in the claimants' bank account
within two days after claimants certify for benefits.
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"We listened to the requests of
those receiving unemployment insurance benefit payments for an
alternative to waiting to receive their checks in the mail, and
responded with a statewide direct deposit program," said Brenda
Russell, director of the Department of Employment Security. "Direct
deposit provides a low-cost way to disperse payments quickly and
more securely. IDES believes that offering direct deposit to the
unemployed is yet another example of our continued commitment to
improving customer service." The move away from delivering checks
in the mail to a direct deposit system provides benefits to both the
unemployment insurance recipient and the state. Claimants wait for
the mail to deliver their checks, which can take three to five days,
or longer, if there is an interruption in postal service. Direct
deposit offers Department of Employment Security clients faster
payments, convenience, the prevention of lost or stolen checks, and
the reliability that benefits will be deposited into their account,
correctly and confidentially.
Recent figures provided by the U.S. Department of the Treasury's
Financial Management Service demonstrate the cost savings that can
be achieved by using direct deposit rather than mailed checks. FMS
issued almost 253 million checks during fiscal 2002, at a unit cost
of 74.5 cents. FMS has determined the cost of a direct deposit
disbursement to be 12.6 cents, for a savings of 62 cents per unit.
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 Unemployment insurance benefit payees who have bank accounts can
begin direct deposit services by stopping by their local Department
of Employment Security office, filling out a form and submitting it
along with a voided check. The form can also be found on the
Internet at
http://www.ides.state.il.us/pdf/forms/
direct_deposit/authorization.pdf.
The Illinois Department of Employment Security administers
federally funded employment services and unemployment insurance
through its 70 offices, including the Illinois Employment and
Training Centers. The department also receives federal grants to
provide and analyze labor market statistics and information.
Illinois work force and career information is available at
www.ILWorkInfo.com.
[Illinois
Department of Employment Security news release]
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