Sequestration and Reduction of EUC Benefits
As a result of the federal sequestration that began in April 2013, weekly EUC benefits for Pennsylvania claimants were reduced by 10.7 percent. Sequestration was in effect for the weeks ending April 6, 2013, through Nov. 30, 2013.
The sequestration is no longer in effect for CWEs Dec. 7, 2013, and after.
Beginning with week ending Dec. 7, 2013, EUC benefits will be paid at the original EUC weekly benefit rate (WBR).
If your EUC WBR, maximum benefit amount (MBA) and balance were reduced due to sequestration, they will be increased.
Labor & Industry has provided notifications to individuals affected by the end of sequestration.
If your EUC WBR, MBA, and EUC balance were reduced due to sequestration, they will be increased when your first EUC payment is processed for weeks ending Dec. 7, 2013, or later. If you are working part-time or receiving a pension, there may be a 1-3 day delay in the processing of your first increased EUC payment.
The department will send you a Revised Notice of Financial Determination which will reflect your original WBR. At the same time, your balance will be recalculated as shown in the following example:
Balance at the end of the sequestration period = $5,000.
$5,000 X 1.119821 (multiplier provided by the U.S. Department of Labor) =
$5,599.105, rounded up to $5,600 (revised EUC balance)
The sequestration period has ended for weeks ending Dec. 7, 2013, and after. Benefits that are still being processed for weeks ending April – Nov. 2013, will be subject to the 10.7 percent sequestration reduction.
The 10.7 percent reduction is mandated by federal law. The Pennsylvania Unemployment Compensation (UC) authorities do not have any discretion regarding the reduction.
Determining your reduced WBR
Original WBR = $573 X .107 (10.7%) = $61.311 rounded up to $62
$573 - $62 = $511 (reduced WBR)
Determining your reduced balance:
$5,000 X .107 (10.7%) = $535
$5,000 - $535 = $4,465 (reduced balance)