The Department of Labor reports that $10.3 billion in benefits were handed to individuals who were not supposed to receive them in fiscal year 2012.
Given that the program paid out $90.2 billion, that means the Federal-State Unemployment Insurance program’s rate of impropriety for the year hit 11.4 percent.
Paymentaccuracy.gov, which discloses the data, contends that the majority of improperly allocated funds is due to “individuals [who] did not meet their active work search requirements, continued to claim unemployment benefits after they had returned to work, or were ineligible for benefits because they voluntarily quit their jobs or were discharged for misconduct.”
CNS News reports that in an attempt to recoup some of the losses, the federal government awarded $169.9 million in supplemental funding to 33 states for the prevention, detection, and recovery of benefit payments in 2012.
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