ROUGHLY 350,000 workers will be forced to repay benefits after a collections pause issued during the Covid pandemic was lifted.
The first payments are due September 29 for those who were overpaid by an unemployment agency.
The pause was lifted on September 12, giving Michiganders about two weeks to prepare for the first payment[/caption]
Workers in Michigan with claims in collections dating back to March 1, 2020 will be forced to return the benefits, officials said Wednesday.
The debt totals $2.7 billion, according to the Detroit Free Press.
Individuals who owe money should have received a notification in their Michigan Web Account Manager (MiWAM) accounts alongside a Form 1088 collection notice that provides the amount owed.
The state of Michigan explained an overpayment occurs when an individual receives unemployment benefits but is later deemed ineligible.
The pause was lifted on September 12, giving Michiganders about two weeks to prepare for the first payment.
“We understand the impact these collections will have on household budgets. That is why we are providing notice and information about applying for a financial hardship waiver,” Unemployment Insurance Agency (UIA) Director Jason Palmer said in a statement.
PAY IT BACK
The UIA asserted those who received money they were entitled to are liable to pay back the money.
“You are required to repay benefits for which there is a final (re)determination or decision that you should not have received unless you have requested and received a waiver,” the agency said.
Workers were previously notified that they received an overpayment but due to the pause on collections, imposed by the court, the UIA was unable to request payments over the last five years.
There are two ways to repay the debt.
A payment could either be submitted through your MiWAM account or a check or money order with the attached Form 1088 can be mailed to the UIA.
Payments can be mailed to Unemployment Insurance Agency-Restitution.
For those unable to pay the debt, they can request a waiver.
Officials said the quickest way to apply for a financial hardship waiver is through their MiWAM account.
It remains up to the UIA whether or not the debt will be waived.
6 MONTHS WAIT
If you are denied, you have to wait six months before reapplying.
Overpayments will not be waived if fraud is found on claims.
Repayments will return to the Trust Fund, where benefits are paid, once collected.
“Protecting the Trust Fund is a key part of the agency’s broad reform agenda, which is focused on fast, fair, and fraud-free service,” the agency said.
The lifting of the collection pause comes after a settlement in the Saunders v. UIA class action lawsuit.
The settlement found over 23,000 workers in Michigan who filed claims were wrongly asked to repay all or some of their benefits before checking for protests or appeals, WZZM13 reported.
UIA agreed to pay $55 million to settle the case and is now resuming collections under the agreement to “refrain from collecting any overpayments until all protest or appeal rights have been exhausted.”
