In a show of bipartisanship, the Senate voted unanimously to forgive $2.7 billion in overpayments sent to Michigan residents during the COVID-19 pandemic.
Background:
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- Given the sharp increase in claims during the pandemic, Michigan’s Unemployment Insurance Agency (UIA) was moving quickly to get funds to claimants, leading to errors.
- Around 350,000 residents are being asked to repay claims that were paid in error.
- Recovery of the funds was put on hold for three years while a legal challenge worked its way through the courts.
- This past fall, collections were allowed to restart.
Key Points:
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- Senate Bill 700 was introduced by Senator Darrin Camilleri (D-Brownstown).
- It prohibits the recovery of improperly paid funds after three years from the date of payment, for claims on or after February 1, 2020.
- Requires the UIA to treat benefits paid between February 7, 2020, and September 5, 2021, as an administrative or clerical error, and for the agency to waive recovery of those benefits.
- The legislation provides an exemption for benefits paid due to fraud or identity fraud.
The bill will be sent to the House for consideration.
