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Kentucky to replace state’s antiquated unemployment insurance system

The Kentucky Education and Labor Cabinet has entered into an agreement with Deloitte Consulting to replace Kentucky’s decades-old unemployment insurance system. The new system will feature a modern and integrated platform that will provide easier access for UI claimants, as well as employers and the staff who use the system daily.

“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,” said Gov. Andy Beshear.

The existing system was implemented almost 40 years ago. The dated system, combined with previous staff reductions and budget cuts, resulted in many Kentuckians experiencing significant delays in receiving UI benefits during the height of the COVID-19 pandemic.

The Education and Labor Cabinet’s Office of Unemployment Insurance and Deloitte Consulting will now begin a 90-to-120-day planning process to determine the timeline of the project.

Full implementation of the new system is anticipated by 2028.