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Unemployment Insurance: Millions in Benefits Overpaid to Military Reservists

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Report Type Reports and Testimonies
Report Date Aug. 5, 1996
Report No. HEHS-96-101
Subject
Summary:

More than one million Americans serve in the national reserves. When these reservists claim unemployment insurance (UI), they must report reserve income so that state UI programs can reduce benefits accordingly. In the seven states GAO reviewed, however, reservists filing for UI failed to report more than $7 million in reserve income during fiscal year 1994. This resulted in $3.6 million in UI benefit overpayments, of which federal trust fund losses were $1.2 million. GAO found that many UI claimants may be unaware of requirements to report reserve income. Moreover, many claimants are not specifically asked to report reserve income, and the incentives not to report reserve income are increased by the limited ability of states to detect nonreporting.

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