Colorado Labor Department Launches Automated Payment Card

The Unemployment Insurance Program has completed a successful trial period and is now officially launching this new way of providing benefits to those who have lost a job through no fault of their own.

“This is just one more example of how government can use technology to change the old ways of doing business,” says Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment. “This new delivery system makes life easier by providing greater security, privacy, and reliability of the unemployment insurance payment system.”

Mares calls the card “another example of our commitment to quality customer service and making sure unemployment benefits reach families as quickly as possible.” Claimants no longer need to wait for a check to arrive in the mail. Instead, funds are automatically deposited to the CAP Card account on a biweekly basis. Money can be accessed at any Visa-member bank or at automated teller machines (ATMs), and Chase provides claimants with account balance information 24 hours a day, 7 days a week online, by phone and at Chase ATMs.

In addition to the convenience and security the CAP Card offers the claimant, it provides cost savings and improved efficiencies that benefit taxpayers. The costs associated with warehousing check stock, printing checks and bank-processing fees will be eliminated, cutting costs significantly. First year savings on postage costs alone total $209,475.00. By providing electronic payments to recipients, the CAP card also assists with the government’s environmental efforts to reduce paper consumption.

“The CAP Card will allow the State of Colorado to serve thousands of workers receiving unemployment benefits in Colorado each year in a more efficient manner,” said Governor Bill Ritter. “I want to thank Executive Director Donald Mares and the staff of the Unemployment Insurance Program for their initiative and dedication in making this system a top priority and a reality for Colorado.”