Iowa Workforce Board decides not to recover UC overpayments

March 3, 2016

The Iowa Workforce Development (IWD) Board has decided to forgive the beneficiaries of overpayments that were made in error two years ago. The board made the decision after a lengthy discussion at it’s regularly scheduled meeting on Friday, Feb. 25. ABI board member John Krogman of Connect-A-Dock serves on the IWD board and spoke in favor of using the recovery process already outlined in Iowa Code.

The board will request an appropriation from the Iowa Legislature to replenish the fund with Federal Reed Act money that is allocated to the states for UC administrative improvements. If the Legislature agrees, the UC Trust Fund will be fully replenished from the loss to the fund.

In the spring of 2014, the Iowa Department of Workforce Development (IWD) made an error in the payment of Unemployment Compensation benefits resulting in overpayments to 1,552 UC beneficiaries totaling more than $700,000.

ABI is actively engaged on this matter to ensure that Iowa businesses are not financially obligated to pay for this error. Staff contact: Myron Linn

Read more:Iowa's $434K unemployment mistake is forgiven (Des Moines Register)