House Business & Consumer Affairs SubcommitteePresented by: Michael Ayers, Chief of Staff, Department of Economic Opportunity

Wednesday, October 19, 2011

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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 PeriodYear Preceding

Prior YearPrior 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*

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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.

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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.

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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.

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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.

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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

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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.

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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

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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, 2011Source: 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

Billi

ons

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

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UC Trust FundTaxes Collected – Benefits

Paid

0

0.5

1

1.5

2

2.5

3

3.5

Bill

ions

TaxesCollected

BenefitsPaid

In 2010, $2.3 billion in Benefits Paid and $1.1 billion in Taxes Collected

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Questions?

Michael AyersChief of Staff

Florida Department of Economic Opportunity107 East Madison Street

Tallahassee, FL 32399-4135

850-245-7298 | floridajobs.org