Title XII unemployment advance interest rate for 2011

UIPL_9-11-ACC.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2011/UIPL_9-11-ACC.pdf)

                                                          CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 UI
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR
                                                          OUI/DFAS
             Washington, D.C. 20210
                                                          DATE
                                                          February 8, 2011


ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 09-11

TO:               STATE WORKFORCE AGENCIES

FROM:             JANE OATES /s/
                  Assistant Secretary

SUBJECT:          Interest Rate on Title XII Advances During Calendar Year (CY) 2011


1. Purpose. To announce the rate of interest that the U.S. Department of the Treasury
   (Treasury) will charge on Title XII advances during CY 2011.

2. References. Sections 303 and 1202 of the Social Security Act (SSA); Section 3304 of the
   Federal Unemployment Tax Act (FUTA); and 20 CFR Part 606.

3. Background. The criteria for establishing the rate of interest to be charged on Title XII
   advances during any CY are described in Section 1202(b)(4) of the SSA. In brief, the interest
   rate for a CY is the earnings yield on the Unemployment Trust Fund (UTF) for the quarter
   ending December 31 of the previous CY.

4. Calendar Year 2011 Interest Rate. The Treasury has established the earnings yield on the
   UTF for the quarter ending December 31, 2010, to be 4.0869 percent. As such, this also
   becomes the rate of interest that will be charged to repayable Title XII advances during CY
   2011.

5. Action Requested. States expecting to request a Title XII advance should take necessary
   action to establish a mechanism to provide funds for the payment of interest on those
   advances in accordance with the provisions of Section 1202(b) of the SSA, and subject to the
   limitations in Section 303(c)(3) and 1202(b)(5) of the SSA and Section 3304(a)(17) of the
   FUTA.

  In summary, interest is due and payable each September 30 and may not be paid from the
  state’s unemployment fund or from Federal funds. However, there are several provisions for
  interest relief, including “Cash flow loans”, “May/September delays”, “High unemployment
  deferrals”, and “High unemployment delays”. For further information concerning relief from
  Title XII interest payments, see 20 CFR Part 606, subparts D and E.

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



 RESCISSIONS                                             EXPIRATION DATE
 None                                                    February 8, 2012