Section 2720.11  Methods Of Payment

a)         For purposes of this Section, "benefits" includes payments to a claimant pursuant to the Unemployment Insurance Act; trade readjustment allowances and alternative trade adjustment assistance payable pursuant to the Trade Act of 1974, as amended (19 USC 2101 et seq.); disaster unemployment assistance payable pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended (42 USC 5121 et seq.); and any other payments the Department may make with respect to unemployment.

b)         Except as otherwise provided in subsection (c), the Department will pay benefits to a claimant by crediting the benefits to a financial institution account that the Department shall establish for the claimant and against which the claimant may electronically draw funds through the use of a debit card.  The issuance of a debit card pursuant to this Section does not entitle a claimant to draw funds unless:

1)         the claimant has activated the card in accordance with the instructions of the financial institution with which the account was established; and

2)         the account has a positive balance.  The claimant's use of a card pursuant to this Section shall be subject to the terms of the cardholder agreement provided by the financial institution with which the claimant's account has been established.  The Department may make adjustments to an account established pursuant to this Section when necessary to correct credit or debit entries made in error.

c)         Notwithstanding subsection (b), the Department will pay benefits to a claimant by direct deposit into a financial institution account designated by the claimant if the designation is in effect at the time the benefit payment is processed.  A designation made pursuant to this subsection shall be made on a Direct Deposit Authorization Form provided by the Department and shall subject the claimant to the terms and conditions set forth on the form.  The Department may make adjustments to an account designated pursuant to this Section when necessary to correct credit or debit entries made in error.

d)         This Section applies to trade readjustment allowance payments made on or after July 22, 2008, payments made pursuant to the Unemployment Insurance Act with respect to benefit years beginning on or after July 22, 2008, and all other benefit payments made on or after November 1, 2008, except alternative trade adjustment assistance payments.  This Section applies to alternative trade adjustment assistance payments made on or after April 1, 20 09.  Paper checks will not be issued through the regular benefit payment system with regard to benefit payments to which this Section applies. 

(Source:  Added at 32 Ill. Reg. 13177, effective July 24, 2008)