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Authority reports $9.18M collected from fund‑recovery notices; vendor TSI yielding additional payments
Summary
Staff reported 187,236 fund‑recovery notices have been issued covering 65,578 employers; collections related to those notices total about $9.18 million to date and a third‑party vendor (TSI) has brought in $1.75 million while helping close many notices.
The Connecticut Paid Leave Authority reported progress in its fund‑recovery program at the Dec. 11 board meeting, citing hundreds of thousands of notices sent and millions collected through direct outreach and a contracted vendor.
Walter (staff member) told the board that the Authority has issued 11 quarters of notices and sent a total of 187,236 notices covering 65,578 unique employers; 27,229 notices were paid and total receipts tied to those notices are about $9,178,000 (principal $7,201,000; penalties $1,742,000; interest $234,305). The Authority has used Transworld Systems, Inc. (TSI) as a fund‑recovery vendor since January 2024; to date staff placed 87,979 notices with TSI for 24,349 unique employers and the vendor has directly recovered $1,752,000.
Walter said the Authority has also waived many notices after validating that no liability was owed (86,222 waived notices for 36,549 unique employers). The vendor placements have led to payments and to closures after verification: of the notices placed with TSI, staff closed or waived roughly 42.76% in the system.
The fund‑recovery effort has generated incoming cases: since inception staff have received 28,073 inquiries or cases resulting from notices and have closed 27,916 of those as of November, leaving about 157 cases open being worked by finance staff. Outreach to Connecticut Department of Labor records identified tens of thousands of accounts potentially subject to registration; targeted mailers to DOL accounts have resulted in 1,353 newly registered accounts.
Why it matters: Collections and cleanup of erroneous or delinquent accounts both improve program solvency and ensure employers who must contribute are registered; staff emphasized case management and use of vendor resources to reach harder‑to‑find accounts.
Walter said staff will continue placements with the vendor and monitor progress; no board vote was required.
Ending: Staff will report ongoing placement results and the closure rate to the board in subsequent updates and continue outreach to employers and payroll partners.
