U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

 

CORRESPONDENCE SYMBOL

 

ISSUE DATE

October 27, 1993

RESCISSIONS

None

EXPIRATION DATE

October 31, 1994

DIRECTIVE

:

GENERAL ADMINISTRATION LETTER NO. 02-94

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

Barbara Ann Farmer
Administrator
for Regional Management

 

SUBJECT

:

Alternative Extended Benefit (EB) Triggers - High Unemployment Period

 

  1. Purpose: To provide clarification of the requirements for the determination of extended compensation entitlement during a "high unemployment period" (HUP).

  2. Contact: Questions regarding this directive should be directed to the respective Regional Office.

  3. References: The Federal-State Extended Unemployment Compensation Act of 1970 as amended by Title II of the Unemployment Compensation Amendments of 1992 (Public Law (P.L.) 102-318); UIPL 45-92 (57 Fed. Reg. 47871, 47873); 20 CFR Part 615.

  4. Background: P.L. 102-318 amended the Federal-State Extended Unemployment Compensation Act of 1970 (FSEUCA) to provide an alternative trigger provision that State law may include for purposes of beginning and ending an extended benefit (EB) period. States adopting the alternative trigger must also provide for the potential payment of up to an additional seven (7) times the weekly benefit amount, in accordance with Section 202(b)(3)(A) of the FSEUCA, during a HUP as defined in Section 202(b)(3)(B) of the FSEUCA. This letter will focus on the determination and payment of benefits during a HUP.

  5. Controlling Guidance: The operating instructions in this GAL are issued to the States and cooperating State agencies and constitute the controlling guidance provided by the Department until revisions to 20 CFR 615 are published. This GAL will be published in the Federal Register.

  6. Establishment of High Extended Benefit (HEB) Account: The extended compensation monetary entitlement determined effective during an HUP is hereafter referred to as HEB.

    Section 202(b)(3)(A) of the FSEUCA provides that the amount to be established in an individual's HEB account is the amount, including dependents' allowances, which represents the lesser of (a) 80 percent of the total amount of regular compensation, (b) 20 times the individual's average weekly benefit amount, or (c) 46 times the individual's average weekly benefit amount, reduced, in accordance with State law, by the amount of regular benefits previously paid or deemed paid. If State law so provides, the maximum amount established in the individual's HEB/EB account is reduced by the amount of additional benefits paid or deemed paid during the individual's benefit year which did not begin in the EB period or HUP. See 20 CFR 615.7(b)(2).

  7. Determination and Payment of HEB: When a HUP triggers "on," in a State under State law provisions which are in conformity with Section 203(f) of the FSEUCA (including the requirements of Section 202(b)(3)(B) of the FSEUCA), each individual with an existing benefit year when the EB period begins has entitlement to HEB. The EB period may be in effect prior to or simultaneously with the HUP. An individual claiming a week of unemployment beginning during the benefit year, or thereafter, during the HUP, shall have their monetary entitlement determined or redetermined to the HEB amount, including dependent's allowances, that represents the lesser of: (a) 80 percent of the total amount of regular compensation, including dependent's allowances, (b) 20 times the individual's average weekly benefit amount, or (c) 46 times the individual's average weekly benefit amount, reduced, but not below zero, by the amount of regular and additional benefits (if State law so provides) and all EB previously paid or deemed paid.

    The eligibility period for the payment of HEB consists of only those weeks beginning during a HUP. Therefore, when the HUP ends, the account of each individual, whose monetary award was determined or redetermined to the HEB level during the HUP, shall be redetermined to the amount, including dependent's allowances, that represents the account balance minus the unpaid portion of the increased award attributable to the HEB determination.

  8. Action Required: State Administrators are requested to make a copy of this letter available to all appropriate staff.

  9. Attachments: None.