2009 extension of Emergency Unemployment Compensation

UIPL23-08C4acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2009/UIPL23-08C4acc.pdf)

                                                            CLASSIFICATION
         EMPLOYMENT AND TRAINING                            EUC08
      ADMINISTRATION ADVISORY SYSTEM                        CORRESPONDENCE SYMBOL
         U.S. DEPARTMENT OF LABOR                           OWS/DUIO
              Washington, D.C. 20210                        DATE
                                                            March 4, 2009

ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 23-08, Change 4

TO:            STATE WORKFORCE AGENCIES

FROM:          DOUGLAS F. SMALL /s/
               Deputy Assistant Secretary

SUBJECT:       Emergency Unemployment Compensation, 2008 - Program Extension

1. Purpose. To advise states about the extension of the Emergency Unemployment Compensation,
   2008 (EUC08) program.
2. References. Section 2001 (“Extension of Emergency Unemployment Compensation
   Program”) of Division B, Title II, the Assistance for Unemployed Workers and Struggling
   Families Act, of the American Recovery and Reinvestment Act of 2009, Public Law No. 111-
   5, enacted February 17, 2009; Unemployment Compensation Extension Act of 2008, Public
   Law 110-449, enacted November 21, 2008; Supplemental Appropriations Act, 2008, Title
   IV—Emergency Unemployment Compensation, Public Law 110-252, enacted June 30, 2008;
   Unemployment Insurance Program Letter (UIPL) No. 23-08, and Changes 1, 2, and 3.
3. Summary of Changes. The EUC08 program was scheduled to expire on August 27, 2009.
   Public Law No. 111-5 extends the “phase-out” period and expiration date of the EUC08
   program as follows:
   •    The period during which an individual may initially establish eligibility for the First-Tier
        of EUC08 is extended to the week of unemployment ending on or before December 31,
        2009. No new EUC08 First-Tier determinations may be made for weeks of
        unemployment ending after December 31, 2009.
   •    The start of the “phase-out” period is extended. Under the new “phase-out” period, an
        individual having amounts remaining in an EUC08 account as of the last day of the last
        week (as determined under the applicable state law) ending on or before December 31,
        2009, will, if otherwise eligible, continue to receive payment from that account until the
        earlier of exhaustion of benefits or program termination.
   •    The period in which Second-Tier augmentation may occur is extended. If an individual’s
        First-Tier EUC08 account is exhausted on or before December 31, 2009, the individual
        may qualify for a Second-Tier benefit augmentation if an EUC08 Second-Tier period is
        either then in effect or subsequently triggers “on” (even if that period triggers “on” after
        December 31, 2009). However, there may be no Second-Tier benefit augmentation for
        any individual exhausting a First-Tier EUC08 account after December 31, 2009.
 RESCISSIONS                                                EXPIRATION DATE
 None                                                       Continuing

   •   The expiration date of the program is extended. Under the new expiration date, no First
       or Second-Tier EUC08 payments may be made for any week of unemployment beginning
       after May 31, 2010.
4. Financing and Reporting. States will continue to draw down funds for benefit payments from
   the Extended Unemployment Compensation Account using the Automated Standard
   Application for Payment (ASAP) system and should include those amounts on the ETA 2112
   (OMB No. 1205-0154), line 23 (currently labeled “Fed Emergency Compensation”), columns
   C and E. Administrative funds will be provided through the UI-3 (OMB No. 1205-0132)
   process. States in need of funds prior to the release of funds through the quarterly UI-3
   process should inform their Regional Office.
   Benefits under Title IV of the Supplemental Appropriations Act, 2008, and the
   Unemployment Compensation Extension Act, Public Law 110-449 are mostly FUTA-funded
   while benefits under the American Recovery and Reinvestment Act of 2009 are funded from
   general revenues. Since the benefits must be charged to the appropriate source, reporting of
   benefits must be aligned with the applicable law. To accomplish that requirement, states
   should provide a breakout, in the “Comments” section, of EUC08 disbursements shown on
   Line 39 (currently labeled “EUC08 Activities”) of the ETA 2112. States should show two
   numbers:
       A. FUTA Funded Benefits (show as FUTA = $XXX) — EUC08 benefits based on wages
   for services with employers, except those employers listed in (B) below. This number
   includes benefits paid to claimants who were eligible under Title IV of the Supplemental
   Appropriations Act, 2008 and the Unemployment Compensation Extension Act, Public Law
   110-449, (that is, claimants who were eligible under the law prior to the amendments made
   by the American Recovery and Reinvestment Act of 2009) by virtue of having amounts
   remaining in their EUC08 accounts as of March 31, 2009. In addition, this number must
   include Second-Tier benefits paid to claimants who exhausted First-Tier EUC08 before
   April 1, 2009, but established eligibility for Second-Tier EUC08 after March 31, 2009,
   because the state entered a Second-Tier period after that date. Do not include amounts paid
   for any weeks of unemployment beginning after August 27, 2009.
       B. General Revenue (GR) Funded Benefits (show as GR = $YYY) — EUC08 benefits
   paid based on services performed for the Federal government (UCFE and UCX), state and
   local government (contributory and non-contributory), Section 501(c)(3) nonprofit employers
   (contributory or non-contributory employers to which Section 3309(a)(1) of the Internal
   Revenue Code applies), and federally-recognized Indian Tribes (contributory or non-
   contributory). In addition, include all benefits for any claimants who were not eligible for
   EUC08 benefits under Title IV of the Supplemental Appropriations Act, 2008 and the
   Unemployment Compensation Extension Act, Public Law 110-449 (that is, claimants who
   became eligible under the amendments made by the American Recovery and Reinvestment
   Act of 2009). Also include Second-Tier EUC08 benefits for those claimants exhausting
   First-Tier EUC08 after March 31, 2009 and establishing Second-Tier eligibility after that
   date, as well as all benefits paid for all claimants for weeks of unemployment beginning after
   August 27, 2009.
5. Interpretation. The information in this document is issued to the states and cooperating state
   agencies as guidance provided by the Department of Labor in its role as the principal in the
   EUC08 program. As agents of the United States, the states and cooperating state agencies
   may not deviate from this guidance without the prior approval of the Department. To the


   extent that the guidance provided in UIPL No. 23-08, and Changes 1, 2, and 3 are
   inconsistent with this UIPL, such guidance is superseded.
6. Action Requested. Administrators are to provide this information and instructions to the
   appropriate staff.
7. Inquiries. Direct questions to the appropriate Regional Office.