; and (iii) upon verification pursuant to clause (ii), to take appropriate action to suspend or modify unemployment compensation payments, and to initiate recovery of any improper payments that have been made. (B) State Information Data Exchange System Use the State Information Data Exchange System (or another system at the discretion of the State) to facilitate employer responses to requests for information from State workforce agencies. (C) Incarcerated individuals Seek information from the Commissioner of Social Security under sections 202(x)(3)(B)(iv) and 1611(e)(1)(I)(iii) of the Social Security Act, or from such other sources as the State agency determines appropriate, to obtain the information necessary to carry out the provisions of a State law under which an individual who is confined in a jail, prison, or other penal institution or correctional facility is ineligible for unemployment compensation on account of such individual's inability to satisfy the requirement under section 303(a)(12) of such Act. (D) Deceased individuals Compare information of individuals claiming unemployment compensation against the information regarding deceased individuals furnished to or maintained by the Commissioner of Social Security under section 205(r) of the Social Security Act. (b) Unemployment compensation For the purposes of this section, any reference to unemployment compensation shall be considered to refer to compensation as defined in section 3306 of the Internal Revenue Code of 1986. 5. Extension of emergency State staffing flexibility If a State modifies its unemployment compensation law and policies with respect to personnel standards on a merit basis on an emergency temporary basis as determined by the Secretary, including for detection, pursuit, and recovery of fraudulent overpayments under Federal pandemic unemployment compensation programs authorized under the CARES Act ( 15 U.S.C. 9021 et seq. ), subject to the succeeding sentence, such modifications shall be disregarded for the purposes of applying