No checks. No paper. No postage.

The state's new paperless system for its unemployment insurance benefits is saving some big bucks - and getting that much-needed money into the hands of the unemployed faster.

The paperless system, first unveiled in January, offers those receiving Connecticut unemployment benefits the option of either having the weekly payment deposited directly into a bank account or through a special Visa debit card.

Nancy Steffens, a spokeswoman for the state's Department of Labor, says about 70 percent of those receiving weekly unemployment benefits have opted to have the money deposited into a bank account, with the remaining 30 percent choosing the debit card provided by Chase Bank, which handles the program for the state agency.

During the first week of the new paperless system, more than $45 million was paid out in electronic payments.

Its advocates say that besides the cost savings from a paperless system, it also provides a more secure system to disburse the weekly benefits and gives beneficiaries direct access to their benefits without waiting for the check to arrive in the mail. During the holidays, for instance, when mail volumes grow, some checks can be delayed or, worse yet, checks can be stolen from mailboxes.

With the Visa debit card, the state labor department electronically loads an individual's weekly unemployment payments onto the card, which is similar to an automated teller machine card. The debit card, in turn, can be used to get cash from an ATM machine, or bank or credit union. It also can be used to make purchases wherever the Visa logo is displayed. Those wanting the debit card can sign up online using the labor agency's secure website at www.ctdol.state.ct.us.

Despite some initial grumblings about the Visa debit card being issued by a non-Connecticut-based bank - the global Chase Bank is headquartered in New York - Steffens says the program is working well. And Chase now has an affiliation with the Connecticut-based People's United Bank to handle the cards. She adds that the paperless system was put to bid and Chase was the best bidder in terms of offering the most advantageous system for both the Department of Labor and those receiving weekly unemployment benefits - with the fewest charges.

There also were problems with some of those receiving unemployment compensation using debit cards issued by check-cashing companies. Serious problems ensued in early February when about 1,000 claimants used such a debit card and then tried to receive unemployment insurance benefits. State labor department officials ensured that those in need of unemployment payments received them and still remind all those receiving unemployment compensation to use the state-approved debit card or select the direct deposit option into a bank account.

State officials say the new direct-deposit or debit card system was done for several reasons: Most states have switched to such a system to ensure cost savings and efficiencies, there's increased security because checks can't be lost or stolen and there are big savings - estimated at nearly $4 million annually - from not having to print checks and mail them.

Connecticut's unemployment benefits system, which has been stressed by the huge increases in participants and related costs, offers up some big numbers: Each week, more than 140,000 checks were mailed to those receiving unemployment compensation, amounting to about $42 million each week in total benefits paid out.

Last year, nearly $3 billion was sent out in unemployment compensation checks.

"Before the economy took a nosedive," explains Steffens, we were sending out about 40,000 payments a week. Then it went to about 160,000 to 170,000 a week after 2008, when things started to get very bad."

In 2010, the state labor agency estimates it issued just under 7.9 million unemployment checks.

The Great Recession, which wrung out the state's economy from March 2008 through January of this past year, brought high unemployment rates to the state. Even in March, Connecticut's jobless rate stood at 9.1 percent, compared to a national rate of 8.8 percent. That translates to about 172,000 people unemployed across Connecticut out of its total non-farm work force of some 1.9 million.

Those high jobless rates meant that Connecticut ran through its reserves for the unemployment insurance trust fund in 2009. Since then, Connecticut has had to borrow nearly $730 million from federal coffers to continue to pay out unemployment benefits to those without work. Connecticut, however, must pay interest on those federal borrowings. And officials fear that if those borrowings continue from the federal government, that number could reach $1 billion.

This past week, state labor department officials sought legislation that would raise the trust funds reserve levels to nearly $1.1 billion - almost a doubling of that reserve - but business is voicing some concerns, since it pays two types of taxes to finance unemployment insurance benefits. The maximum weekly claim that Connecticut can pay out is $555, according to labor agency officials.

Steffens, the labor department's spokeswoman, says the new paperless system is working well. Complaints have been few, she says.

"So far, we're finding that people really like the system. Those who have signed up for it (online) say it took them less than two minutes," says Steffens.

a.cronin@theday.com

By the numbers

$300,000Monthly savings, paperless unemployment benefits

$3.6 millionAnnual savings on paper, printing, mailing

140,000Number of checks previously printed, mailed weekly

Paperless benefitsConnecticut now offers a paperless direct-deposit system for unemployment insurance benefits.For details or questions about how it works:• Visit

www.NoPaperChecksCT.com• Or send an email to

dol.directbenefits@ct.gov