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U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20213

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEUMI

ISSUE DATE

May 11, 1987

RESCISSIONS

 

EXPIRATION DATE

May 31, 1988

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 23-87

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

DONALD J. KULICK
Administrator
for Regional Management

 

SUBJECT

:

The Agreement with the Secretary of Labor to Implement Section 303 (a) of the Social Security Act

 

  1. Purpose. To provide questions and answers concerning the Agreement sent to the Governor of each State, on August 14, 1986, (Agreement), to implement the recovery of overpayments authorized by Section 303 (g) of the Social Security Act (SSA), and to provide the States an opportunity to modify the Agreement.

  2. References. Section 303(g), SSA; UIPL 50-86 (51 FR 34273, September 26, 1986).

  3. Background. Section 303 (a) (5) , SSA, and Sections 3304(x)(4) and 3306 (f) of the Federal Unemployment Tax Act (FUTA), were amended by Section 12401 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), Pub. L. 99-272, which also added subsection (g) to Section 303 of the SSA. Section 303(g) (and the related amendments to SSA and FUTA) authorize the States, at each State's option, to recover overpayments of unemployment benefits paid under State and Federal programs through an interstate arrangement and by offset between programs. Section 303(x)(1), SSA, provides thel basic authority for recovery of overpayments made under State and Federal unemployment compensation (UC) laws through offset from unemployment benefits payable to an individual under another State's UC law or a Federal UC program. Section 303(g)(2) provides that the implementation of the offset of benefits between the Federal and State UC programs (i.e., cross-program offset) will be through formal written reciprocal agreements between the States and the Secretary of Labor.

    Consequently, on August 14, 1986, each State Governor was offered an agreement signed by the Secretary of Labor (the original Agreement). Twenty-five States have signed the original Agreement. However, some States have raised questions concerning a State's obligations under the original Agreement. This program letter is issued to answer these questions, to clarify the scope and purpose of Section 303(g), and to provide the States with the opportunity to modify the original Agreement.

  4. Action Required. State Administrators are requested to:

    1. Review the Attachments and make a copy of this Letter and Attachments available to appropriate staff;

    2. Notify the appropriate Regional office if after reviewing this information the State decides not to enter into any Agreement with the Secretary at this time;

    3. Have their Governor sign the original agreement if they wish to undertake the obligations set forth in section 2. of Attachment I; and,

    4. Follow the procedures in the attached Questions and Answers, Section III A and B, Attachment II, if the Governor wishes to modify the original Agreement.

  5. Inquiries. Direct inquiries to the appropriate Regional Office.

  6. Attachments. (I) UI Offset Summary and (II) questions and answers on section 303(g), SSA.