EMPLOYMENT AND TRAINING ADMINISTRATION
ADVISORY SYSTEM
U.S. DEPARTMENT OF LABOR
Washington, D. C. 20210

CLASSIFICATION

OWS

CORRESPONDENCE SYMBOL

OIS/DUO

ISSUE DATE

January 9, 2003

RESCISSIONS

None

EXPIRATION DATE

Continuing

ADVISORY

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 30-02 Change 1

 

TO

:

ALL STATE WORKFORCE AGENCIES

 

FROM

:

CHERYL ATKINSON
Administrator
Office of Workforce Security

 

SUBJECT

:

Temporary Extended Unemployment Compensation (TEUC) Act of 2002

  1. Purpose. To provide State Workforce Agencies (SWAs) instructions for implementing and operating the extension of the TEUC program.

  2. References. Title II of the Job Creation and Worker Assistance Act of 2002 (The Temporary Extended Unemployment Compensation Act of 2002), Public Law 107-147, signed by the President on March 9, 2002; Public Law 108-1, signed by the President on January 8, 2003; UIPL No. 30-02 dated July 5, 2002; Section 205 of the Federal-State Extended Unemployment Compensation Act of 1970, as amended; Section 233 of the Trade Act of 1974; 20 CFR Part 615; ET Handbook No. 401; ET Handbook No. 410.

  3. Summary . Public Law 108-1 amended the TEUC Act of 2002 to provide for a 5-month extension of the program through the week ending May 31, 2003, and for a transition period for the continuation of payments to individuals who have TEUC benefit balances as of May 31, 2003, through the week ending August 30, 2003. The last week during which a new TEUC claim can be effective is the week ending May 31, 2003. No additional weeks of TEUC are provided for individuals who have already exhausted their TEUC eligibility.

  4. Summary of Changes. The amendments (see item 9 below for text) to Section 208 of the TEUC Act do the following:

    1. Extend the TEUC program (without change) through the week ending May 31, 2003; and

    2. Provide a phase-out for each individual who has "an amount remaining" in his/her TEUC account as of May 31, 2003. An individual can collect this remaining entitlement through the week ending August 30, 2003. Any individual who qualifies for this phase-out is limited to the amount in the account as of May 31, 2003. There will be no new TEUC or TEUC-X determinations effective for weeks of unemployment after May 31, 2003. Individuals exhausting basic TEUC in a "high unemployment" state during the phase-out will not be able to qualify for TEUC-X.

      Section 1(b) of Public Law 108-1 provides that the amendments shall take effect as if included in the enactment of the Temporary Extended Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 21). The Department interprets this to mean that implementation of the amendments is retroactive for both administrative and benefit costs. Therefore, states will be funded for claims taken between the December 2002 expiration date and the January 2003 enactment date.

  5. Interpretation. SWAs are required to continue to follow the Department's interpretation of the TEUC Act and the operating instructions previously published in UIPL No. 30-02 to guide states in administering the TEUC program, except as changed by this advisory.

    The instructions in this document are issued to the states and cooperating state agencies as guidance provided by the Department of Labor in its role as the principal in the TEUC program. As agents of the United States, the states and cooperating state agencies may not vary from the operating instructions without the prior approval of the Department. The interpretations, policies, and procedures issued in this document supersede those previously issued as UIPL No. 30-02 with respect to the ending of the program.

  6. TEUC Agreements. TEUC is administered through voluntary agreements between states and the Department of Labor. All states have agreements with the Secretary to administer the TEUC program under provisions of the TEUC Act. The existing agreements remain in effect and no new agreements are necessary.

  7. Notifications.

    1. Identification and Notification of Potentially Eligible Claimants. A potentially eligible claimant is any individual who has a TEUC claim on file with an existing balance or has exhausted regular, additional or extended benefits with payment for the weekending December 28, 2002, or thereafter. SWAs will identify individuals, including interstate claimants, who are potentially eligible for TEUC due to the amendments to Section 202 of the TEUC Act, and provide each individual with written notification of his/her potential entitlement to TEUC, as appropriate

    2. Notification of Media. To assure public knowledge of the extension of the TEUC program, the state shall notify appropriate news media having coverage throughout the state.

  8. Reports. SWAs are required to continue to submit a separate financial status report (Standard Form 269) for administrative grants and costs associated with the Temporary Extended Unemployment Compensation (TEUC) program.

  9. Text of Revised Section 208 of the TEUC Act

    SECTION 208. APPLICABILITY.

    1. IN GENERAL--Except as provided in subsection (b), an agreement entered into under this title shall apply to weeks of unemployment--

      1. beginning after the date on which such agreement is entered into; and

      2. ending before June 1, 2003.

    2. TRANSITION FOR AMOUNT REMAINING IN ACCOUNT--

      1. IN GENERAL--Subject to paragraphs (2) and (3), in the case of an individual who has amounts remaining in an account established under section 203 as of May 31, 2003, temporary extended unemployment compensation shall continue to be payable to such individual from such amounts for any week beginning after such date for which the individual meets the eligibility requirements of this title.

      2. NO AUGMENTATION AFTER MAY 31, 2003--If the account of an individual is exhausted after May 31, 2003, then section 203(c) shall not apply and such account shall not be augmented under such section, regardless of whether such individualís State is in an extended benefit period (as determined under paragraph (2) of such section).

      3. LIMITATION--No compensation shall be payable by reason of paragraph (1) for any week beginning after August 30, 2003.

  10. Action Required. Administrators are requested to provide this information and instructions to the appropriate staff.

  11. Inquiries. Direct questions to the appropriate Regional Office.