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U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEUT

ISSUE DATE

February 12, 1998

RESCISSIONS

None

EXPIRATION DATE

February 28, 1999

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 15-98

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

GRACE A. KILBANE
Director
Unemployment Insurance Service

 

SUBJECT

:

Distribution of Model Code which Automates the Statement of Benefits Paid to Combined Wage Claimants (Form IB-6).

 

  1. Purpose. To notify the State Employment Security Agencies (SESAs) of the February 1998 distribution of the model code for the automated Statement of Benefits Paid to Combined Wage Claimants (Form IB-6) and issue implementation instructions.

  2. Reference.  Section 3304(a)9(B) of the Internal Revenue Code; 20 CFR 616; ET Handbook No. 399; and UIPL No. 28-97, dated April 24, 1997.

    3.Background.  Automation of the combined wage claim (CWC) activities between States involve the Request for Wage Transfer (IB4), the Report on Determination of CWC (IB5), and the Statement of Benefits Paid to CWC claimants (IB6). Model Code providing for the electronic exchange of TC-IB4 and TC-IB5 data has previously been provided to the States and these applications are operational. The IB-6 is used by the paying State of a CWC to provide the detail quarterly charges to the transferring State for reimbursement and is the final application needed to complete the automation of CWC activities.

    As explained in UIPL No. 28-97 dated April 24, 1997, Lockheed Martin Integrated Business Solutions (LMIBS) has developed Model Code to process and transmit the IB-6 data. This application has been pilot tested by the States of Maryland, Minnesota, and Oregon. The test results indicate that the application operates efficiently when reviewing the accuracy of the charges, identifying charges that don't reconcile with the pro rata charge distribution requirements of the IB5, and delivering outgoing and incoming IB6 data. The test States reported a major savings in the amount of staff time necessary to process outgoing and incoming IB-6s because only charges that do not pass the electronic edits need staff attention.

    Although the Code was completed during the summer of 1997, National distribution was delayed in consideration of the year 2000 requirements. However, since 19 States have requested and received the Code from LMIBS, the IB Committee has recommended distribution of the Code to all States with a requirement that all States be able to electronically send and receive IB6 data no later than the billing cycle for the quarter ending March 31, 1999.

  3. Distribution and Installation of the TC-IB6 Model Code. The Model Code will be distributed in February, 1998, to those IBM States that have not previously received it. Simultaneously, the programming specifications will be provided to all non-IBM States that have not previously received them.

    Because the IB6 data is currently electronically created and printed to paper for mailing, the programming requirements to implement the TC-IB6 should not be extensive. It is estimated that installation and testing of the Model Code will take approximately 40 programmer staff hours. The programming hours reported by the pilot States ranged from 24 to 80 hours. The amount of programming hours necessary is impacted by the degree to which the State has interfaced the TC-IB5 application. The TC-IB6 must be able to access the TC-IB5 base file during the edit and reconciliation process.

  4. Implementation - Transition From Paper Form IB6 to Electronic TC-IB6. Effective April 1, 1998, the LMIBS HUB will begin to support the implementation of the TC-IB6 by additional States. States with questions concerning technical requirements, testing, etc., should contact Michelle Wohleber at (407) 306-7133.

    During the transition period between April 1, 1998 and April 1999 (when all States are to be operational on this application), the CWC paying State that is operational on the TC-IB6 must ensure that it sends a quarterly IB6 in the form (electronic data or hard copy) necessary for processing by the transferring State. The paying State must also be able to handle incoming IB6s prepared under the current hard copy procedures.

  5. Action Required. SESA Administrators are requested to ensure that: 1) the TC-IB6 Model Code is installed and operational no later than for the 1st quarter of calendar year 1999 billing cycle; 2) if the State becomes operational on the TC-IB6 during the transition period, the State continues to send quarterly IB6 data in the form necessary for processing by the transferring State; and, 3) the State is able to process incoming IB6s prepared under the current procedures through the billing cycle for the quarter ending December 31, 1998.

  6. Inquiries.  Direct inquiries to the appropriate Regional Office.