commission on unemployment compensation sam lupica, acting commissioner august 14, 2014 status of...
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![Page 1: Commission on Unemployment Compensation Sam Lupica, Acting Commissioner August 14, 2014 Status of the Unemployment Trust Fund and Related Issues](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d745503460f94a54784/html5/thumbnails/1.jpg)
Commission on Unemployment Compensation
Sam Lupica, Acting CommissionerAugust 14, 2014
Status of the Unemployment Trust Fund
and Related Issues
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Basic Benefit Information
Purpose Min/Max Amount
$60 $378
Min/Max Duration 12 weeks 26 weeks
Qualification Eligibility Effective July 6, 2014, minimum earnings
requirement increased from $2,700 to $3,000; and minimum weekly benefit amount increased from $54 to $60.
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Trust Fund Data—Standard Forecast (Millions of Dollars)
2013 2014
January 1 Balance ($34.3) $186.9
Tax Revenue $791.1 $742.4
Interest Revenue $4.7 $8.8
Benefits $575.8 $510.0
December 31 Cash Balance
$186.9 $428.6
Solvency Level (6/30) 24.4% 34.2%
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December 31, 2013 and 2014, balances include $1.2 million and $0.5 million, respectively, from FUTA Credit Reduction paid to IRS.
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June 30 Trust Fund Balances and Solvency
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Mill
ions
Trust Fund Solvency shown as a percent (%)
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Average Total State Tax5
Cos
t pe
r E
mpl
oyee
Average State Tax
Calendar Year
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Pool Taxes6
Calendar Year
Cos
t pe
r E
mpl
oyee
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Distribution of 2014 Base Tax Rates(excluding 0.22% pool tax and 0.20% fund builder tax)Computed and Assigned Rates7
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Claims Filed
Calendar Year Initial Claims
2009 485,711
2010 380,830
2011 330,057
2012 301,211
2013 276,807
2014 (Jan. – June) 117,477*
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*Annual claims projected to be 231,000.
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Virginia’s Unemployment Rates2012 - 2014 (year to date)
9Pe
rcen
t of L
abor
For
ce
(not seasonally adjusted)
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UI Initial Claims2012 - 2014 (year to date)
Total initial claims through June this year are down 16.7% because of fewer layoffs in manufacturing, administrative and support services, construction, and accommodations and food services.
October 2013 increase includes initial claims from partial federal government shutdown.
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UI Final Payments2012 - 2014 (year to date)
For the first six months of 2014, final payments are down 13.6% from 2013 and 23.9% from 2012.
The exhaustion rate in June was 46.3%, down from last June’s 47.9%.
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Exhaustion Rates2012 - 2014 (year to date)
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Exha
ustio
n Ra
te
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Fourth Circuit States13
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Implementation of Legislation Enacted During 2014 Session
SB110 Short-Time Compensation creates § 60.2-700 thru 710 Establishes a short-time compensation program that provides employers with the option of reducing the hours worked by employees, while permitting the employees whose hours are reduced to receive partial compensation for lost wages
Effective January 1, 2015 U.S. Department of Labor is reviewing the Virginia Short-
Time Compensation Program for compliance with funding eligibility criteria outlined in the Unemployment Insurance Program Letter number 27-12
Marketing of the program will be conducted through VEC’s Employer Conferences and electronic messaging via the Virginia Workforce Connection
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Implementation of Legislation Enacted During 2014 Session
SB18 Military Trailing Spouse amends § 60.2-618(1) and §60.2-528(c)(9) Provides that good cause for leaving employment exists if an employee voluntarily leaves a job to accompany the employee's spouse, who is on active duty in the military or naval services of the United States
Since the effective date of July 6, 2014, there have been twelve claims filed under trailing spouse
Administrative Law and UI Division have provided appropriate guidance to all adjudicators
Relief of Benefit Charges: Benefit charges are assigned to pool, rather than charged to individual employers of military trailing spouses
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Implementation of Legislation Enacted During 2014 Session
HB22 Benefit Ratio amends § 60.2-530 Provides that an employer's payroll, for purposes of calculating its benefit ratio and state unemployment tax rate, shall be deemed to be $1 when the employer's taxable payroll for the applicable 12-month period is not more than $1
The technical change required for calculating the state unemployment tax rate and benefit ratio has been made
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Implementation of Legislation Enacted During 2014 Session
HB389 Voluntary Separation amends § 60.2-618 Establishes a rebuttable presumption that an individual left work voluntarily if the individual was a graduate student whose employment commenced and ended between spring and fall semesters of his academic program and he returned to his academic program following his separation from employment
Administrative Law and UI Division have provided appropriate guidance to all adjudicators
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Implementation of Legislation Enacted During 2014 Session
SB266 Financial Literacy § 60.2-401 Financial Literacy information has been posted to
the VEC’s homepage and included in the PIN letters claimants receive
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