2013 extension of temporary EUC and EB benefits

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION              EUC08
               ADVISORY SYSTEM                         CORRESPONDENCE SYMBOL
                                                       OUI/DUIO
          U.S. DEPARTMENT OF LABOR
                                                       DATE
             Washington, D.C. 20210                    January 7, 2013



ADVISORY:            UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 04-10,
                     Change 11

TO:                  STATE WORKFORCE AGENCIES

FROM:                JANE OATES /s/
                     Assistant Secretary

SUBJECT:             Extension of Temporary Provisions – Emergency Unemployment
                     Compensation and Extended Benefits Provisions

1. Purpose. To advise states of the latest extension of the Emergency Unemployment
   Compensation (EUC08) program and temporary Extended Benefit (EB) provisions.

2. References.
   • American Taxpayer Relief Act of 2012, (January 2, 2013), (the Act), Title V, Sections
      501- 503;
   • Middle Class Tax Relief and Job Creation Act of 2012, Public Law (Pub. L.) 112-96,
      (February 22, 2012), Title II, Section. 2001-2184 (Extended Benefits, Reemployment and
      Program Integrity Improvement Act);
   • Temporary Payroll Tax Cut Continuation Act of 2011, (Pub. L. 112-78);
   • Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010,
      Pub. L. 111-312;
   • Unemployment Compensation Extension Act of 2010, (Pub. L. 111-205);
   • Supplemental Appropriations Act, 2008, Pub. L. 110-252; Sections 2002 and 2005 of
      Division B, Title II, the Assistance for Unemployed Workers and Struggling Families
      Act, (Pub. L. 111-5);
   • Federal-State Extended Unemployment Compensation Act of 1970 (Pub. L. 91-373);
   • Public Information Collection Activities; Submission to Director; Approval and
      Delegation (44 USC § 3507);
   • Public protection (44 USC § 3512);
   • Unemployment Insurance Program Letter (UIPL) No. 23-08, Supplemental
      Appropriation Act, 2008, Title IV—Emergency Unemployment Compensation, and UIPL
      No. 23-08, Changes 1, 2, 3, 4, 5, and 6;
   • UIPL No. 07-09; Federal-State Extended Unemployment Compensation Act of 1970–
      Temporary Change in Federal Sharing for First Week of Extended Benefits;
   • UIPL No. 12-09; Extended Benefits Program—Temporary Changes made by the
      Assistance for Unemployed Workers and Struggling Families Act;


 RESCISSIONS                                          EXPIRATION DATE
 None                                                 Continuing

   •   UIPL No. 04-10, Extension of Temporary Provisions—Emergency Unemployment
       Compensation, 2008, Federal Additional Compensation, and Extended Benefits, and
       UIPL No. 04-10, Changes 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10; and
   •   Training and Employment Guidance Letter (TEGL) No. 20-11, Reemployment Services
       and Reemployment and Eligibility Assessment Activities for Recipients of Emergency
       Unemployment Compensation, and TEGL No. 20-11, Changes 1 and 2.

3. Summary of Provisions. The Act extends the expiration dates of the EUC08 program and
   the temporary EB provisions, and continues the work search and Reemployment Services
   and Reemployment and Eligibility Assessment (RES/REA) requirements outlined in
   UIPL No. 04-10, Change 10, TEGL No. 20-11, and TEGL No. 20-11, Changes 1 and 2. The
   changes made by the Act are outlined below.

   A. Extension of EUC08 Program

       •   The end of the period during which an individual may establish initial eligibility for
           EUC08 First Tier is extended to weeks of unemployment ending on or before
           January 1, 2014. (In most states, this means the week-ending December 28, 2013.)
       •   The end of the period during which an EUC08 account may be augmented is
           extended. Individuals must exhaust an EUC08 tier for a week of unemployment that
           ends on or before January 1, 2014, in order to have their EUC08 account augmented.
       •   There continues to be no “phase-out” period when the program expires on January 1,
           2014 (that is, the period during which individuals who have remaining amounts in
           their EUC08 accounts may continue to collect those amounts). No EUC08 First,
           Second, Third, or Fourth-Tier payments may be made for any week of unemployment
           ending after January 1, 2014. (In most states, this means the week ending December
           28, 2013, will be the final payable week of EUC08).
       •   If an individual received a partial payment for the week-ending December 29, 2012
           (week-ending December 30, 2012 in New York), due to the exhaustion of benefits in
           an EUC08 tier, states should augment (if not already done) that payment with
           amounts from the next higher EUC08 tier to allow for the payment of an amount
           equal to the original weekly benefit amount, if the individual is otherwise eligible
           (see UIPL No. 23-08, Change 3, Q&A C.6 and Change 5 (Q&As C-8, D-7, and E-5)).

   B. EUC08 Work Search and Work Search Audit Requirements

       •   No changes were made to these requirements. Individuals who are receiving EUC08
           are required to actively seek work, and states are required to audit work search
           activities in accordance with guidance provided in UIPL No. 04-10, Changes 9 and
           10, and this UIPL. Therefore, states must immediately (continue to) notify
           individuals of the applicability of the EUC08 work search requirements, since the
           program has been extended.
       •   States will determine whether a claimant was provided adequate notification of the
           EUC08 work search requirements for any week(s) in which a claimant certifies a
           claim for benefits, and may not issue a denial of the claim for failure to meet the
           EUC08 work search requirements for any week for which the state determines it did
           not provide the claimant adequate notification of the work search requirements.


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   •   States may, but are not required to, conduct EUC08 work search audits for the week
       ending January 5, 2013 (January 6, 2013 in New York), and until the first week of
       unemployment that begins following the date this UIPL is issued.

C. Reemployment Services and Reemployment and Eligibility Assessment Activities for
   Recipients of EUC08

   •   No changes were made to this requirement, and funding authority was extended
       through fiscal year 2014.
   •   States must continue to provide RES/REAs to individuals who began receiving
       EUC08 First Tier benefits or who transitioned from First Tier to Second Tier benefits
       on or after March 23, 2012, in accordance with guidance provided in TEGL No.
       20-11, and TEGL No. 20-11, Changes 1 and 2, except that, the deadlines for notifying
       and scheduling EUC RES/REAs are extended for those individuals who were not
       scheduled for an RES/REA due to the prior statutory end date (January 2, 2013) of
       the EUC08 program.
   •   States must ensure that those individuals who were not scheduled for an RES/REA
       due to the prior statutory end date (January 2, 2013) of the EUC08 program are
       scheduled for an RES/REA as soon as possible.

D. Changes Made to the Extended Benefit Program Temporary Provisions

    1. 100 Percent Federal Funding

   •   The Federal government will reimburse states for 100 percent of the benefit costs of
       sharable EB and sharable regular compensation for weeks of unemployment
       beginning before December 31, 2013.
   •   The phase-out period for states to receive 100 percent reimbursement for individuals
       who have established EB eligibility is extended. If an individual received EB with
       respect to one or more weeks of unemployment beginning after February 17, 2009,
       and before December 31, 2013, the Federal government will continue to pay 100
       percent of the eligible (sharable) EB benefit costs for weeks of unemployment ending
       before June 30, 2014.

    2. Individual Eligibility Period

   •   The provision permitting certain individuals to qualify for EB following exhaustion
       of EUC08 (without an overlap between their benefit year and the EB period) is
       extended. States may continue to permit these individuals to qualify for EB after they
       have exhausted EUC08 during an EB period that began on or before the date the
       individuals exhausted EUC08, even if the benefit year of those individuals ended
       (See UIPL No. 12-09, Q&A #6). This option remains available to states for weeks of
       unemployment beginning after February 17, 2009, and ending before December 31,
       2013.




                                           3

        3. Federal Sharing for First Week

       •   The suspension of the prohibition of Federal sharing for the first week of EB, if state
           law permits individuals to be compensated for the first week of regular compensation
           eligibility at any time or under any circumstances, is extended through weeks of
           unemployment ending on or before June 30, 2014.

        4. Three-year Look-back

       •   The EB three-year look-back provisions are effective with respect to compensation
           for weeks of unemployment beginning after the date of the Act’s enactment (January
           2, 2013), or, if later, the date established pursuant to state law and ending on or before
           December 31, 2013. Note: If state law established a date earlier than December 31,
           2013, then a change in state law is needed for states to be authorized to apply this
           extension.

4. Non-Reduction Rule. No changes were made to this requirement. The non-reduction rule
   discourages states from changing the method governing the computation of regular
   compensation under the state law in a manner such that the average weekly benefit amount of
   regular compensation during the period of the EUC08 agreement will be less than the
   average weekly benefit amount of regular compensation which would otherwise have been
   payable during such period under the state law in effect on June 2, 2010. Upon a
   determination by the Secretary of Labor that a state violated this rule, its agreement to
   administer the EUC08 program would be terminated, except for states covered under Pub. L.
   112-96 (February 22, 2012). This law provided that the non-reduction rule “shall not apply
   with respect to a State that has enacted a law before March 1, 2012, that, upon taking effect,
   would violate” the non-reduction rule. Therefore, any state with legislation enacted on or
   after March 1, 2012, that violates the non-reduction rule and becomes effective before the
   expiration date (January 1, 2014) of the EUC08 program would be subject to termination of
   its agreement to administer the EUC08 program.

5. Effective Dates. The extensions are effective “as if included in the enactment of the
   Unemployment Benefits Extension Act of 2012 (Public Law 112–96).”

6. Interpretation. The Department provides this guidance to the states and cooperating state
   agencies in its role as the principal in the EUC08 program. As agents of the Federal
   government, the states and cooperating state agencies may not deviate from this guidance
   without the prior approval of the Department. To the extent that the prior guidance (as
   outlined in #2, References above) is inconsistent with this UIPL, this UIPL supersedes that
   guidance.

7. Action Requested. Administrators are to provide this guidance to the appropriate staff.

8. Inquiries. Questions should be directed to the appropriate Regional Office.

9. Attachments.
   Attachment 1— Key Dates for the Act.
   Attachment 2— Relevant statutory provisions in the Act.

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Attachment 1 (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2013/UIPL_4_10_Chg11_Att1.pdf)

ATTACHMENT 1

                                     Key Dates for UI Programs Following Enactment of American Taxpayer Relief Act of 2012


                         Key Dates for UI Programs Following Enactment of Temporary Payroll Tax Cut Continuation Act of 2011

                                               Last Date Eligibility May Be Established for
                                                                                                   Last Date Payable/Sharable Under Phase-Out
                                                             New Participants
                Program
                                                                        Actual Week Ending
                                               Statutory End Date                                 Statutory End Date         Actual Week Ending Date
                                                                               Date¹
                                                             2
EUC08                                        January 1, 2014           December 28, 20133, 4   No Phase-out                  No Phase-out
100% Federal sharing EB5                     December 31, 20136        January 4, 20147        June 30, 20148                June 28, 20149
                                                                 Statutory End Date                            Actual Week Ending Date
                    st                                       2                                                 9
Federal sharing 1 week EB –                  June 30, 2014                                     June 28, 2014
compensable waiting week
Three-year look-back option for EB           December 31, 20132                                December 28, 201310
triggers

1. For states where week of unemployment ends on Saturday.
2. Weeks of unemployment ending on or before this date.
3. Last week of unemployment for which an individual may receive EUC08. No EUC08 will be payable after this week.
4. For New York, where a week of unemployment ends on Sunday, the actual week ending date is December 29, 2013.
5. Also applies to provision permitting states to extend an individual’s EB eligibility period.
6. Weeks of unemployment beginning before this date.
7. For New York, January 5, 2014.
8. Weeks of unemployment ending before this date.
9. For New York, June 29, 2014.
10. For New York, December 29, 2013.

                                      Duration and Total Unemployment Trigger Values for EUC Tiers
                                                                              Tier 1               Tier 2               Tier 3                Tier 4
Weeks of Benefits                                                              14                   14                    9                    10
Total Unemployment Trigger Values Required                                     n/a                  6%                       7%                9%

Attachment 2 (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2013/UIPL_4_10_Chg11_Att2.pdf)

ATTACHMENT 2
                           TITLE V—UNEMPLOYMENT

SEC. 501. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

     (a) EXTENSION.—Section 4007(a)(2) of the Supplemental Appropriations Act, 2008 (Public Law 110-
     252; 26 U.S.C. 3304 note) is amended by striking “January 2, 2013” and inserting “January 1, 2014”.
     (b) FUNDING.—Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110-
     252; 26 U.S.C. 3304 note) is amended—
            (1) in subparagraph (H), by striking “and” at the end; and
            (2) by inserting after subparagraph (I) the following:
                     “(J) the amendments made by section 501(a) of the American Taxpayer Relief Act of
            2012;”.
     (c) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in the
     enactment of the Unemployment Benefits Extension Act of 2012 (Public Law 112-96).

SEC. 502. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

     (a) IN GENERAL.—Section 2005 of the Assistance for Unemployed Workers and Struggling Families
     Act, as contained in Public Law 111– 5 (26 U.S.C. 3304 note), is amended—
             (1) by striking “December 31, 2012” each place it appears and inserting “December 31, 2013”;
             and
             (2) in subsection (c), by striking “June 30, 2013” and inserting “June 30, 2014”.
     (b) EXTENSION OF MATCHING FOR STATES WITH NO WAITING WEEK.—Section 5 of the
     Unemployment Compensation Extension Act of 2008 (Public Law 110– 449; 26 U.S.C. 3304 note) is
     amended by striking “June 30, 2013” and inserting “June 30, 2014”.
     (c) EXTENSION OF MODIFICATION OF INDICATORS UNDER THE EXTENDED BENEFIT
     PROGRAM.—Section 203 of the Federal-State Extended Unemployment Compensation Act of 1970
     (26 U.S.C. 3304 note) is amended—
            (1) in subsection (d), by striking “December 31, 2012” and inserting “December 31, 2013”; and
            (2) in subsection (f)(2), by striking “December 31, 2012” and inserting “December 31, 2013”.
     (d) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in the
     enactment of the Unemployment Benefits Extension Act of 2012 (Public Law 112-96).

SEC. 503. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND REEMPLOYMENT
AND ELIGIBILITY ASSESSMENT ACTIVITIES.

     (a) IN GENERAL.—Section 4004(c)(2)(A) of the Supplemental Appropriations Act, 2008 (Public Law
     110-252; 26 U.S.C. 3304 note) is amended by striking ”through fiscal year 2013” and inserting “through
     fiscal year 2014”.
     (b) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in the
     enactment of the Unemployment Benefits Extension Act of 2012 (Public Law 112-96).