State employs Deloitte to replace Kentucky’s antiquated unemployment insurance system

Kentucky has faced many issues with its unemployment insurance (UI) system in recent years.

On Friday, Gov. Andy Beshear announced that Deloitte Consulting has been awarded the contract to replace the state’s antiquated UI system.

A release noted the almost 40-year-old system will be replaced with a modern and integrated platform that will provide easier access to UI claimants, as well as employers and staff who use the system, to provide assistance to Kentuckians seeking employment.

Full implementation is expected in 2028.

“This new system will help us better meet the needs of Kentuckians by improving accessibility and claims processing times, as well as safeguarding against potential unemployment insurance fraud,” Beshear said.

The governor announced he would be seeking to overhaul the system after the shutdowns and employment changes that accompanied the COVID-19 pandemic coupled with many years of downsizing showed the severe inadequacies of the UI system, which resulted in many fraudulent claims and delayed assistance at the height of the pandemic.

The process to secure a company to take on this task has been long, as an earlier request for proposal was canceled in 2021 following a widespread cyberattack on state UI systems across the country. A second solicitation was canceled in 2022 after the selected vendor failed to sign and return the contract, according to the Beshear administration.

Stay tuned to The Bottom Line for updates.