Ways and Means Committee Introduces Emergency Unemployment Compensation Act
November 22, 2011 - NORTON, MA - On November 3, 2011 after the failure to approve President Obama’s American Jobs Act, which included the extension of federally funded unemployment insurance (“UI”) programs to 2013, Democrats from the Ways and Means Committee introduced the Emergency Unemployment Compensation Act legislation to extend federal UI programs through 2012.
Under past legislation in the Unemployment Compensation Act of 2010, the temporary Emergency Unemployment Compensation (“EUC”) and Extended Benefit (“EB”) provisions will terminate in January 2012 resulting in six million unemployed workers losing their UI benefits by the end of 2011.
The new proposal would:
- Extend the EUC program, which provides up to 53 weeks of federally-funded extended UI benefits in certain states, from January 3, 2012 to December 31, 2012;
- Extend the 100% federal funding for the EB program, which provides an additional 13 to 20 weeks of UI benefits in certain states from January 4, 2012 to December 31, 2012.
In addition, the Emergency Unemployment Compensation Act would relieve those states with federal unemployment funding loans from interest charges in 2012; prevent higher federal unemployment taxes in January 2012 on employers in insolvent states; and provide a solvency bonus to states without any outstanding loans.
We will continue to advise our clients of this pending legislation and how it affects their SUB-Pay Plan in future bulletins.
About Total Management Solutions
Total Management Solutions has pioneered the next generation of corporate severance solutions known as Severance 2.0. These custom solutions can be implemented within 3-4 weeks. TMS provides a dedicated client services team for every corporation with support services available to the separated employees who have any questions about their transition benefit plan. This dedicated TMS Client Services team is staffed with experienced professionals who know first-hand what separated employees are experiencing during reductions-in-force. This team helps ensure that the separated employee population is cared for and treated with the utmost respect, understanding and compassion while providing companies with more effectiveness, efficiency, and empathy; and less hassles, costs, and risks.