House Business & Consumer Affairs Subcommittee Presented by: Michael Ayers, Chief of Staff,...
-
Upload
roy-matthews -
Category
Documents
-
view
214 -
download
1
Transcript of House Business & Consumer Affairs Subcommittee Presented by: Michael Ayers, Chief of Staff,...
House Business & Consumer Affairs SubcommitteePresented by: Michael Ayers, Chief of Staff, Department of Economic Opportunity
Wednesday, October 19, 2011
2
UC Benefit Eligibility
Benefits are determined by the wages paid to a worker from all employment during the “base period”, as defined in s. 443.036(7), F.S.
Base period is the first four of the last five completed calendar quarters preceding the filing date of the claim.
Base Period
Year PrecedingPrior Year
Prior Year Current Year
JulyAugust Sept
OctNovDec
JanFebMar
AprilMayJune
July Aug Sept
OctNovDec
JanFebMar
AprilMayJune
JulyAugSept
OctNovDec
---------Base Period-------- Lag Qtr *ClaimFiled*
---------Base Period-------- Lag Qtr *ClaimFiled*
---------Base Period-------- Lag Qtr *ClaimFiled*
---------Base Period-------- Lag Qtr *ClaimFiled*
3
4
Calculation of Benefits
To be monetarily eligible a worker must meet the conditions specified in ss. 443.091(1)(g) and 443.111(2), F.S. The individual must:
have worked during at least 2 of the 4 quarters of the base period;
have been paid total wages of at least $3,400 during the base period; and
have base period wages equal to at least 1.5 times the amount of the wages of the quarter in which the earnings were the highest amount.
5
Calculation of Benefits
As provided in s. 443.111(3), F.S., the weekly benefit amount of the claim is equal to 1/26th of the worker’s high quarter wages but cannot exceed $275.
The total benefits available are equal to 25% of the total base period wages but cannot exceed $7,150, as provided in s. 443.111(5), F.S.
6
Maximum Number of Benefit Weeks
Regular State – 26 weeks* EUC Tier I – 20 weeks EUC Tier II – 14 weeks EUC Tier III – 13 weeks EUC Tier IV - 6 weeks EB – 20 weeks
• TOTAL – 99 weeks
* Changes to 23 weeks January 1, 2012
Calculation of Benefits
Depending on the amount of wages paid to the worker during the base period the individual may be eligible for 10 to 26 weeks of benefits.
The benefits can be claimed for weeks of unemployment that occur during the one-year period following the filing date of the claim.
If the individual uses all state entitlement prior to the expiration date of the claim, no additional state benefits can be paid until a new benefit year has been established as provided in s. 443.036(9), F.S.
7
8
Emergency Unemployment Compensation (EUC)
Individuals that have used all of their entitlement to state benefits can receive Emergency Unemployment Compensation.
EUC program created on June 30, 2008. EUC amended and extended by
Congress eight times. EUC phase-out begins December 31,
2011.
9
Current EUC Eligibility
To enter the EUC program all entitlement to regular state benefits must have ended by the week of December 24, 2011.
Those in the EUC program can establish their next tier of eligibility no later than January 1, 2012.
Phase out through June 7, 2012. EUC - over $8 billion paid since the program
began:SFY 2008-09: $1.415 billion SFY 2009-10: $3.612 billionSFY 2010-11: $2.889 billionSFY 2011-12: $ 327 million
10
State Extended Benefits
State Extended Benefits become payable when the worker has used all regular and EUC entitlements.
Full federal funding provided by the American Recovery and Reinvestment Act (ARRA).
In 2009, 2010, and 2011 the Legislature provided necessary statutory changes to make state extended benefits available.
Extended Benefits cannot be paid for a week of unemployment beyond the week of January 7, 2012.
11
State Extended Benefits (cont.)
Payments – began July 3, 2009 retroactive to
February 22, 2009 Payments to date – Over $1 billion paid:
• SFY 2009-10: $ 491 million• SFY 2010-11: $ 669 million• SFY 2011-12: $ 70 million
Program ends– January 7, 2012
12
Estimated Total Interest Due-- $140.6 million
Florida is currently borrowing an average of $61 million per month at an interest rate of 4.0869%
Life-to-Date Advances as of October 5, 2011
Source: Office of Economic & Demographic Research-June 2011 Cumulative Amount $1,664,600,000
Including $1,008,500,000 repaid, total borrowed is more than $2.5 billion
01/2009
04/2009
07/2009
10/2009
01/2010
04/2010
07/2010
10/2010
01/2011
04/2011
07/2011
10/2011
01/2012
04/2012
07/2012
10/2012
01/2013
04/2013
07/2013
10/2013
01/2014
04/2014
07/2014
10/2014
01/2015
04/2015
07/2015
10/2015
01/2016
04/2016
07/2016
10/2016
01/2017
(4.5)
(4.0)
(3.5)
(3.0)
(2.5)
(2.0)
(1.5)
(1.0)
(0.5)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Unemployment Compensation Trust FundProjected Ending Balance
Bil
lio
ns
January 1, 2012Businesses Begin Paying HigherFederal Unemployment Tax
January 1, 2011 Begin Accruing Interest
Begin Partial Loss of Employer Federal Tax Credit (0.3%)
August 24, 2009 Begin Advances September 30, 2011
First Interest Payment Due $56,106,728.46 million(Paid by employers' special assessment)
January 1, 2014Reinstate Full EmployerFederal Tax Credit
All Advances Repaid May 2013
13
UC Trust FundTaxes Collected – Benefits
Paid
0
0.5
1
1.5
2
2.5
3
3.5
Bil
lio
ns
TaxesCollected
BenefitsPaid
In 2010, $2.3 billion in Benefits Paid and $1.1 billion in Taxes Collected
14
Annual Number of UC Claims
150,000
350,000
550,000
750,000
950,000
1,150,000
1,350,000
1,550,000
CY2001
CY2002
CY2003
CY2004
CY2005
CY2006
CY2007
CY2008
CY2009
CY2010
CY2011
Project Connect
Following a feasibility study, the Legislature authorized the new system in 2009 (SB 1782).
The system will streamline the methods for filing and processing claims, resolving disputed claims, and detecting and preventing overpayments.
The system will result in reduced operating costs to the DEO.
The concept is based on “work first”. Claimants will access UC claims through Employ Florida.
15
Project Connect (cont.)
After all requirements were documented, contract procured with Deloitte to build system.
Currently in the design phase. Scheduled to begin development stage by
November 1, 2011. Testing will begin in August 2012 with
deployment in December 2012. Project is on schedule and within budget.
16
UC Reform (HB 7005)
Amended the meaning of misconduct to include an employee’s actions demonstrating a conscious disregard of a reasonable standard of behavior.
Misconduct can occur regardless of whether it occurred at the workplace or during working hours.
Misconduct includes chronic absenteeism or tardiness, deliberate violation of a state standard or regulation, or violation of employer rule.
17
UC Reform - Eligibility
Claimants must make contact with five prospective employers for work each week or access reemployment services at their local One-Stop.
Before payment can be issued claimants must complete a three-part on-line skills assessment. Results are used by the Regional Workforce Board to develop training for local workforce.
Benefits are denied for any week an employer pays an individual severance pay that exceeds the weekly benefit amount of the claim.
18
UC Reform - Entitlement
For all new claims filed effective January 1, 2012 or later the maximum entitlement on a claim will no longer be 26 weeks.
Maximum benefits for claims filed during a year will be based on the average unemployment rate of the quarter ending September 30 of the prior year.
Starting at 12 weeks the maximum benefits will increase one week for each half-percentage point above 5 percent but cannot exceed 23 weeks.
19
UC Reform - Entitlement (cont.)
When the average unemployment rate in Florida during the third quarter of a year is 10.5 percent or more, 23 weeks of benefits will be the maximum claim.
The total value of a maximum claim will decrease from $7,150 to a range from $3,300 when the unemployment rate is five percent or less, to $6,325 when the unemployment rate is at least 10.5 percent.
The maximum weekly amount remains $275.
20
UC Reform - Administration
All initial and continued claims must be filed by Internet.
Individuals who do not have computers in their homes can use computers available at local One-Stop Career Centers or at their local libraries.
Beginning July 1, 2011 no benefits can be paid by paper checks on new claims filed.
All individuals must opt for either DEO’s VISA branded debit card or direct deposit.
21