Michigan chooses Deloitte to replace MiDAS unemployment insurance system

The Michigan Unemployment Insurance Agency chose Deloitte to replace the decade-old unemployment benefits system, which, over the past decade, has accused thousands of Michiganders of unemployment fraud and contributed to delays in obtaining benefits for 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,” Julia Dale, director of the International Intelligence Federation, said in a conference call with reporters on Tuesday. Dell said the new system would have an “intuitive, human-centered design” and would allow claimants to easily access the system from their phones.

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

Those falsely accused of fraud were subjected to quadruple penalties and collection methods such as withholding wages and confiscation of income tax refunds. Last month, the state of Michigan settled one of its class-action lawsuits against the agency for $20 million.

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