Electronic Transfer of Unemployment Benefits

PURPOSE: This rule implements and sets forth the requirements regarding the electronic funds transfer of unemployment benefits payable to claimants pursuant to Chapter 288, RSMo. (1) The Division of Employment Security has established an electronic funds transfer system to transfer directly to claimant’s accounts benefits payable to them pursuant to Chapter 288, RSMo. (2) For purposes of this rule, the “electronic payment card” shall be an electronic accesstype card which shall not have a line of credit. The only funds which may be deposited in an electronic payment card account established under this rule shall be unemployment insurance benefits payable pursuant to Chapter 288, RSMo and related federal benefits. (3) Unless an individual files a timely direct deposit application with the division, all benefits payable pursuant to Chapter 288, RSMo shall be disbursed by means of an electronic payment card. The division shall not be in any way liable for any transaction or other associated costs that cause a claimant/cardholder to exceed the amount available in his or her electronic payment card account. The division reserves the right to initiate credit entries and debit entries to correct erroneous entries to a claimant/cardholder’s electronic payment card account. If a claimant/cardholder’s electronic payment card account is closed prior to the claimant/cardholder drawing down all available funds in the account, the unexpended funds shall be returned to the division and deposited in the unemployment compensation trust fund. (4) An individual desiring the direct deposit of unemployment benefits into a designated checking or savings account at a financial institution shall complete and file with the division a direct deposit application form. The direct deposit application form shall be filed with the division within seven (7) days after the filing of the initial claim. The direct deposit application form shall authorize the division to initiate credit entries, and debit entries to correct erroneous credit entries, to the claimant’s designated checking or savings account. On the direct deposit application form the claimant shall provide the following: claimant’s name, claimant’s Social Security number, name of the designated financial institution, type of deposit account, signature, and date. The claimant shall file the completed direct deposit application form along with a voided or canceled check or deposit slip for the designated deposit account. At any time during the benefit year, a claimant may change the designated checking or savings account by filing with the division a new direct deposit application form. Unless the claimant changes the designated checking or savings account by filing a new direct deposit application form, the division shall direct all benefits payable to the claimant during his or her benefit year to the checking or savings account designated by the claimant on the direct deposit application form currently on file with the division. Direct deposit application forms may be obtained by contacting one of the division’s regional claim centers or by downloading the form through the division’s Internet website at http://dolir.mo.gov/es/. (5) The provisions of this rule regarding electronic payment cards will not become effective until the division has entered into a contract with a contractor to issue the electronic payment cards. The division will implement the provisions of this rule regarding electronic payment cards over a period of six (6) months following the execution of such contract. (6) Notwithstanding the provisions of this rule, the division may continue to pay benefits by warrant when necessary to comply with federal or state law. AUTHORITY: sections 288.060, RSMo Supp. 2006 and 288.220, RSMo 2000.* Emergency rule filed April 14, 2003, effective May 1, 2003, expired Oct. 27, 2003. Original rule filed April 14, 2003, effective Oct. 30, 2003. Amended: Filed Feb. 14, 2007, effective Aug. 30, 2007. *Original authority: 288.060, RSMo 1951, amended 1957, 1961, 1965, 1984, 1988, 1992, 1993, 2004, 2006; and 288.220, RSMo 1951, amended 1955, 1961, 1963, 1967, 1971, 1995.