Pennsylvania Treasurer Tim Reese has announced U.S. Bank will be the new provider of Treasury's prepaid debit card program used by nearly 80,000 Unemployment Compensation and Workers' Compensation benefit recipients. Treasury expects to send the new U.S. Bank-issued "ReliaCard" in mid-September and begin funding them on October 1, 2015.

        With the new prepaid debit cards, users will be able to make an unlimited number of withdrawals at approximately 3,200 ATMs in Pennsylvania (and 68,000 nationally) without paying a fee. In addition, users can make fee-free purchases at retail establishments and will have online bill payment capabilities. Cardholders will also now have access to a comprehensive mobile application that allows them to manage their account and locate free ATMs in order to avoid out-of-network ATM fees. In the unlikely event that a fee-free ATM is not nearby, cardholders will be able to make up to four withdrawals per month from any ATM without a fee from U.S. Bank.

        "I am pleased that Treasury was able to secure a consumer-friendly program that ensures unemployed and injured Pennsylvanians can continue to cost effectively receive their benefits during a difficult time," said Pennsylvania Treasurer Tim Reese. "The prepaid debit program allows claimants to receive their payments faster and more conveniently than with checks, collectively saves claimants over $2.3 million in annual fees that are charged by other prepaid card programs, and importantly saves taxpayers nearly $1 million annually in check-issuance costs."

        Treasury, the Pennsylvania Department of Labor & Industry (which issues the benefits), and U.S. Bank designed the program to be completely free to cardholders when used responsibly. The program is supported by fees paid by retailers when purchases are made – similar to traditional debit and credit cards – and fees for some infrequently utilized services, all of which are disclosed to cardholders on the fee schedule. While fees for a small number of those infrequently utilized services increased, such as excessive out-of-network ATM withdrawals and account inactivity, the new program offers two additional free out-of-network ATM withdrawals each month and replacement cards at no cost.

        "Our goal was to select a new prepaid debit card that was convenient, easy to use and would provide a seamless transition for our claimants as we migrated to the new program," said Department of Labor & Industry Deputy Secretary for Unemployment Compensation Kevin Cicak. "The 'ReliaCard' program, with all of its enhanced features, is a win for unemployment and workers' compensation claimants."

        While the new U.S. Bank cards will be effective on October 1, claimants will not be able to transfer balances from their previously issued Chase cards and should continue to use their Chase cards until they have spent their balances down to zero (or have withdrawn any remaining funds). In addition, cardholders need to set new PIN numbers for their new U.S. Bank cards when they receive them because the PIN numbers on their Chase cards will not automatically transfer over.

        Notifications on the program transition were sent in mid-August and new U.S. Bank cards will be mailed in mid-September to approximately 65,000 Unemployment Compensation and Workers' Compensation claimants currently using Chase debit cards with recent deposits. Any claimants who anticipate receiving payments from Treasury on a prepaid debit card on or after October 1 should verify their address with the Department of Labor & Industry to ensure notifications and new cards are sent to the correct address.