Michigan hired Deloitte to replace the MiDAS unemployment insurance system

The Michigan Unemployment Insurance Agency has chosen Deloitte to replace its decade-old unemployment benefit system, which, for the past decade, falsely accused thousands of Michigan residents of unemployment fraud and contributed to delays in receiving benefits for claimants during the pandemic.

The new system, which will be called uFACTS, is expected to be fully operational in 2025 and will cost an estimated $78 million over 10 years.

“This is an exciting time that sets the tone for a new direction,” UIA Director Julia Dale said on the phone with reporters Tuesday. Dale said the new system will have an “intuitive, human-centered design” and will allow claimants to easily access the system from their phones.

The Michigan Unemployment Insurance Agency has selected Deloitte to replace its current unemployment benefits computer system, called MiDAS.

The state has long tried to change the system, which was implemented under Gov. Rick Snyder and was found to have a 93% error rate in making fraudulent fraud between 2013 and 2015, affecting tens of thousands of Michigan workers.

People falsely accused of fraud are subjected to quadruple punishment and collection techniques such as wage garnishment and seizure of income tax refunds. The state of Michigan last month reached a settlement in one of the class-action lawsuits against the agency for $ 20 million.

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