Notice To Claimants Regarding Effect Of Sequestration On EUC
The Budget Control Act of 2011 (Public Law 112-25) passed by Congress and signed by the President requires reductions to many federal programs, including the Emergency Unemployment Compensation (EUC) program. These reductions are generally known as “sequestration.” This means that payments of EUC benefits in Virginia for weeks that begin on or after May 12, 2013, must be reduced by 14.2 percent for each week of unemployment through September 2013. On May 1, 2013, the Virginia Employment Commission will mail out a notice to all current active EUC claimants advising them of the impending reduction. The notice will be followed by the mailing of a revised EUC Monetary Determination. The revised EUC Monetary Determination will provide claimants with information concerning their remaining entitlement and new weekly benefit amount. Any new EUC claim established effective May 12, 2013, or later will automatically carry the 14.2 percent reduction in benefits.
Emergency Unemployment Compensation (EUC) Update
Federal legislation passed under the Middle Class Tax Relief and Job Creation Act provides for several changes to the Emergency Unemployment Compensation (EUC) Program. For those claimants that exhaust their regular Unemployment Insurance (UI) claim on or after September 1, 2012, new EUC Tier I entitlement will be the lesser of 14 weeks or 54 percent of their regular UI claim. This means effective September 2, 2012, the maximum entitlement under any new EUC Tier I will be 14 weeks. EUC benefits are currently scheduled to end December 31, 2013.
This change does not affect those claimants on EUC Tier I prior to September 2, 2012. Those individuals who established a EUC Tier I claim prior to September 2, 2012 will be eligible to receive their full EUC Tier I entitlement up through December 31, 2013 or until exhaustion, whichever comes first.
With the change to EUC Tier I effective 9-2-12, this means that Virginia's UI and EUC combined entitlement will be reduced from a maximum of 46 weeks to a maximum of 40 weeks.
Under current federal law, there would be no more benefits paid under any Tier of EUC after December 31, 2013. After that date, Virginia would only be able to provide benefits under the regular UI program (up to 26 weeks).
Extension Information
On February 22, 2012, President Obama signed The Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630). This federal legislation extends Emergency Unemployment Compensation (EUC) benefits through December 2012 with the last week payable as the week ending December 29, 2012. The legislation does NOT include any additional weeks of benefits, but, it does extend the current filing deadlines. All federal extension benefits will cease, no matter where individuals are in the process, with the week ending December 29, 2012.
Click here for more information regarding Emergency Unemployment Compensation
The Middle Class Tax Relief and Job Creation Act also contained the requirement that the VEC provide reemployment services to all claimants who move onto Tier I or Tier II benefits after March 23, 2012.
More information regarding the Reemployment Services for EUC Benefits Claimants
