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SIDES -- the Separation Information Data Exchange System -- will expand from six states to 15 states in the coming months. SIDES is an electronic web-based system that enables the communication and transmission of unemployment insurance separation information between state agencies and multi-state employers.

When fully operational, by the end of 2009, SIDES will improve UI timeliness, provide significant cost savings to states, dramatically improve the accuracy of "separation" information, and reduce improper benefit payments and appeal reversals. It is expected that participation in SIDES will not only save states and employers significant staff resources and postage costs, but also will improve the quality and timeliness of Nonmonetary Determinations.

This summer, in an effort to encourage more states to join the original SIDES consortium, (Utah, Wisconsin, Georgia, Ohio, Colorado, and New Jersey) USDOL provided funding support through supplemental budget requests (SBRs). States taking advantage of the SBRs include Michigan, North Carolina, Texas, Virginia, Maryland, Connecticut, Iowa, Kansas and Rhode Island.

Unemployment insurance separation issues account for more than 21 percent of all UI overpayments and is the second largest cause of overpayments reaching almost $900 million in Fiscal Year 2008. With the addition of these nine states, SIDES will account for 34.5 percent of total separation requests.

The chart above shows the cost savings seen by the original five states that formed SIDES. In total, Colorado, Wisconsin, Utah, Georgia and Ohio will see a combined $1.3 million in annual savings and cost avoidance. For more information on SIDES, please contact John C. Sharkey at sharkey.john@itsc.org.