Michigan picks Deloitte to replace MiDAS unemployment insurance system

Michigan’s Unemployment Insurance Agency has selected Deloitte to replace its decade-old unemployment benefits system, which, over the last decade, has falsely accused thousands of Michigan residents of unemployment fraud and contributed to delays in getting benefits to claimants during the pandemic.

The new system, which will be called uFACTS, is expected to be fully operational in 2025 and 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 a call 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 state has long been trying to replace the system, which was implemented under Gov. Rick Snyder and found to have a 93% error rate in making false fraud findings between 2013 and 2015, affecting tens of thousands of Michigan workers.

Those falsely accused of fraud were subjected to quadruple penalties and collections 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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