STATE CONTINUES EFFORTS TO MODERNIZE UNEMPLOYMENT INSURANCE SYSTEM AND TO IMPROVE ACCESS TO UNEMPLOYMENT BENEFITS

With the announcement of prepaid debit cards, Illinois one of the only states in the nation to offer three choices of payment options            

[DEC. 28, 2006]  DATELINE --

CHICAGO – In an effort to improve service, delivery and convenience to those qualified for unemployment insurance benefits in Illinois, the Illinois Department of Employment Security (IDES) announced today that Illinois residents will have the option of receiving their regular unemployment insurance benefit payments via IDES-issued debit cards. This announcement signals that Illinois now offers three choices for unemployment benefits – via standard unemployment checks, direct deposit and debit cards.

“Debit cards are another major step in our efforts to modernize the unemployment system and make it faster and easier for the unemployed to receive their benefits,” IDES Director Brenda Russell said. “This initiative shows Governor Blagojevich’s continued commitment to improving the lives of all Illinoisans, and enhancing the way we deliver services to our customers.”

According to a recent study by the American Bankers Association, credit and debit cards have surpassed cash as the most popular way to buy items at the checkout line. One out of three purchases is now made with debit cards, compared with one in five purchases four years ago.

“We listened to the needs of those receiving unemployment insurance payments for alternatives to standard unemployment checks, and responded with statewide debit card and direct deposit programs,” Director Russell said.

In order to utilize the debit card option, the claimant will have to complete a Debit Card
Authorization form and either submit it to their IDES local office or mail it to the IDES Accounting and Reporting Unit, P.O. Box 5541, Chicago, IL 60680. The form is available at IDES local office and can also be found on the internet at www.ides.state.il.us. Once a Debit Card Authorization form is submitted to IDES, it will take approximately 10 business days to receive the card.

The prepaid debit card program is being administered jointly by IDES and Illinois
National Bank (INB). Once a prepaid debit card is issued, the claimant will receive correspondence that includes detailed information regarding fees, terms and conditions and how to activate the card, what to do in the event of a lost or stolen card, etc.

The prepaid debit card does not contain a credit feature or the ability to defer payment. Claimants can only spend the benefit amount that has been applied to the card by IDES. The debit card may be used at merchants to make purchases or to withdraw cash. Each time an individual successfully certifies for benefits, IDES automatically adds money to the card.

Since April, unemployment insurance benefit payees who have bank accounts have been able to opt for direct deposit services by stopping by their local IDES 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. IDES also receives federal grants to assist veterans with job placements and provide and analyze labor market statistics and information. Illinois workforce and career information is available at www.ILWorkInfo.com.
 

[News release]