Pa. paying outside firm millions to fix unemployment despite sitting on new, updated system

PITTSBURGH — More than a quarter million Pennsylvanians still need help through the state’s unemployment system and many are still without benefits. Target 11 found out the state is now paying an outside firm millions of dollars to fix the mess.

While millions of Pennsylvanians have received unemployment compensation, another 70,000 are still waiting to hear if they even qualify.

Karen Cooke’s been helping her father, who was laid off, apply for unemployment. He’s been having problems with his claim since August.

“I don’t know how you can get by without having an income,” said Cooke.

In May, Target 11 reported on the 50-year-old computer system the state is using to process regular unemployment claims. Lawmakers spent $30 million on a new system that was supposed to launch in October, but never did. On Sept. 24, the Ben Mod Advisory Committee decided to postpone the launch.

“Again, we are still watching our numbers, and we don’t want to do it when we are in the midst of the kind of situation we were in before. We are watching it carefully and we are making progress, we’ll be announcing something soon,” said Jerry Oleksiak, Labor and Industry Secretary.

Oleksiak said the state is contracting with Ernst and Young to try and fix the backlog. But Target 11 discovered that comes with a hefty price tag: $13 million of your tax dollars.

“They have begun to make a different. They nearly tripled their daily output of claims reviewed and fact-finding since the project began,” Oleksiak said.

Ernst and Young is helping the department determine who qualifies for unemployment. Oleksiak said it takes their employees a lot of time on each case, and these 70,000 cases are complex.

The state Senate Labor Chair, Camera Bartolotta (R), said $13 million may seem excessive, but it’s necessary to get unemployment Pennsylvanians the help they desperately need.

“Those are 70,000 families that needed help yesterday. So, this money came out of the department’s funds, it didn’t come out of the general fund; but this is something that, again, all hands on deck are trying to rectify the situation,” she said.

Sen. Bartolotta said the money is not coming from the budget that was passed last week, and she added the new system is ready, but the fear is switching over now could cause even more issues.

UNEMPLOYMENT SCAMS

The Labor Department is also reminding people about scams as new reports emerge nationally. The latest scam involves fraudsters trying to commit identity theft by circulating emails and Facebook posts informing recipients they won a prize.

“Labor and Industry will never contact you and ask for your personal, private information,” said Oleksiak. “If you receive a call, email, text, social media message, or other communication seeking information such as your username, password or full Social Security number, do not provide it. We will never ask you for this information.”

Multiple states, including Pennsylvania, have been inundated with fraudulent unemployment claims, primarily through the federal Pandemic Unemployment Assistance (PUA) program, which assists out-of-work individuals who are typically ineligible for traditional unemployment.

Due to this issue, there have been questions about the authenticity of a legitimate email distributed by L&I to PUA claimants between 5 p.m. and 6 p.m. Thursday, Nov. 19 from the email sender “LI, oucbp-fedp-pua.” This is the account name for UCPUA@pa.gov.

Target 11 received multiple emails from people asking if this email was legitimate. The department confirms it was from them, saying they sent this email to all claimants who have emailed the department since March 15 as a follow-up during a special review of emails.

If you’re still having trouble getting unemployment, Senator Bartolotta says contact your legislator or email the labor department.

Pennsylvania reports 6,669 new COVID-19 cases Tuesday

Cox Media Group