Authority reports thousands of employer notices, millions recovered after fund-recovery outreach

Walter presented a detailed fund-recovery update. Since the authority began issuing notices for missing quarterly contributions in Q1 2025, staff have sent 156,760 notices covering 59,945 unique employers across nine reporting quarters (Q1 2023 through Q1 2025). Walter said payments have been remitted by more than 22,311 employers, totaling approximately $7.36 million across those notices.

Walter described operational results: 28,322 employer accounts were updated (marked closed or noted as having no Connecticut employees), and the authority has waived 64,618 notices for 32,291 unique employers. To augment internal collection, the authority placed 64,726 notices with its fund-recovery vendor Transworld (TSI) covering 21,010 unique employers; those placements produced 3,897 payments totaling about $1.361 million and 15,255 waived or otherwise closed notices after vendor work.

When board members asked what happens after collection efforts and vendor outreach are exhausted, Walter said the authority "is verifying our litigation process to further go after those employers" and noted that litigation is being prepared for persistent nonpayers. Aaron and finance staff said the penalty revenue and recovered contributions exceed the fees paid to the vendor and staff so far: "the money coming in definitely exceeds the costs that we pay to TSI," Aaron said.

Board members also raised the question of workers seeking claims when employers have not remitted contributions. Staff said the authority "holds the employee harmless" and will accept claims from employees; the authority then pursues the employer through registration and collection activities and, when necessary, litigation. No board vote was taken on collection policy at this meeting; staff said they will continue outreach, TSI placements and targeted litigation where warranted.