UI BAM rates are estimates based on randomly selected samples of UI payments. Overpayment and underpayment rates do not represent the actual percentages of errors detected in the population. These estimated rates are subject to sampling and nonsampling errors. The 95 percent confidence intervals are shown for each State's overpayment and underpayment rates. The interval equals the estimated error rate plus and minus the value indicated in the column (+/!-). The true error rate is expected to lie within this interval for 95 percent of the samples of the size selected by the State.

The 39,057 UI payments for which data were collected represents a completion rate of 99.9 percent of the cases sampled in CY 1996. Nonresponse bias is, therefore, not a significant issue. However, other sources of nonsampling error, such as differences among investigators in the interpretation of State unemployment compensation laws and administrative procedures, can effect accuracy rate estimates.

Users of this data are strongly advised that State UI benefit accuracy rates cannot be compared, due to differences in State laws and policies. No performance standards for UI benefit accuracy have been established. Overpayments and underpayments of UI benefits can be attributed to several causes, many of which cannot be directly controlled by the State Employment Security Agencies.

A more detailed analysis of this data is available in the UI PERFORMS Benefit Accuracy Measurement CY 1996 Annual Report, which is available by request from the U. S. Department of Labor, Unemployment Insurance Service, 200 Constitution Avenue, NW, Room S-4522, Washington, DC 20210 (Attn.: Division of Performance Review).