No. 27924 (Amendment): R994-401. Payment of Benefits

DAR File No.: 27924
Filed: 05/16/2005, 04:16
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to clarify language.

 

Summary of the rule or change:

This amendment is to clarify language about the 50% Social Security deduction and to make minor changes to the part-time concurrent rule. Currently, the employment with the part-time employer must be concurrent, this change provides it need not be concurrent but within seven days of the claim being filed. This amendment also provides that a recalculation due to receipt of retirement benefits need only be made in the first full week of benefits otherwise the calculation is too difficult to make. This amendment merely codifies current Department practice.

 

State statutory or constitutional authorization for this rule:

Section 35A-1-104, and Subsections 35A-1-104(4) and 35A-4-502(1)(b)

 

Anticipated cost or savings to:

the state budget:

There will be no costs or savings to the state budget. This is a federally-funded program and the state is not a contributory employer. The full week change reflects Department practice and affects a very small number of claimants.

 

local governments:

There will be no costs or savings to local governmental entities. These changes reflect Department practice and affect a very small number of claimants.

 

other persons:

These changes reflect Department practice in calculating retirement income and because it is a federally-funded program there will be no costs or savings to any other persons.

 

Compliance costs for affected persons:

There are no costs associated with complying with this proposed amendment.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on any businesses as a result of these changes. The change regarding calculation of retirement income reflects current Department practice. The other changes do not reflect a change in practice. Tani Downing, Executive Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Workforce Information and Payment Services
140 E 300 S
SALT LAKE CITY UT 84111-2333

 

Direct questions regarding this rule to:

Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/01/2005

 

This rule may become effective on:

07/02/2005

 

Authorized by:

Tani Downing, Executive Director

 

 

RULE TEXT

R994. Workforce Services, Workforce Information and Payment Services.

R994-401. Payment of Benefits.

R994-401-203. Retirement or Disability Retirement Income.

(1) A claimant's WBA is reduced by 100%[ percent] of any retirement benefits, social security, pension, or disability retirement pay (referred to collectively in this section as "retirement benefits" or "retirement pay") received by the claimant. Except, [for social security retirement benefits, the reduction is 50 percent ]for claims with an effective date on or after July 4, 2004, and on or before July 2, 2006 the reduction for social security retirement benefits will only be 50%. The payments must be:

(a) from a plan contributed to by a base-period employer. Payments made by the employer for whom the claimant did not work during the benefit year are not counted. Social security payments are counted if a base period employer contributed to social security even if the social security payment is not based on employment during the base period;

(b) based on prior employment and the claimant qualifies because of age, length of service, disability, or any combination of these criteria. Disability payments must be based, at least in part, by length of service. Savings plans such as a 401(k) or IRA should not be used to reduce the WBA Payments from workers' compensation for temporary disability, black lung disability income, and benefits from the Department of Veterans Affairs are not counted because the amount of the payment is based on disability and not on length of service. Payments received as a spouse or beneficiary are not counted. That portion of retirement benefits payable to a claimant's former spouse is not counted if the paying entity pays the former spouse directly and it is pursuant to court order or a signed, stipulated agreement in accordance with the law;

(c) periodic and not made in a lump sum. Lump sum payments, even if drawn from the employer's contributions to a fund established for the purpose of retirement, are not treated as severance pay under Subsection 35A-4-405(7); and

(d) payable during the benefit year. A claimant's WBA is not reduced if the claimant is eligible for, but not receiving, retirement income. However, if the claimant subsequently receives a retroactive payment of retirement benefits which, if received during the time unemployment insurance claims were filed, would have resulted in a reduced payment, an overpayment will be established. The period of time the payment represents, not the time of the receipt, is the determining factor. An assumption that a claimant is entitled to receive a pension, even if correct, is not sufficient basis to recompute the WBA. However, if a claimant has applied for a pension and expects to be determined eligible for a specific amount attributable to weeks when Unemployment Insurance benefits are payable, and the claimant is only awaiting receipt of those payments, a reduction of the claimant's WBA will be made.

(2) A claimant who could be eligible for a retirement income, but [chooses]does not [to ]apply until after the Unemployment Insurance benefits have been paid, will be at fault for any overpayment resulting from a retroactive payment of retirement benefits.

(3) The formula for recomputation of the MBA in the event a claimant begins receiving retirement income after the beginning of the benefit year is found in Subsection 35A-4-401(2)(d).The recomputation is effective with the first full calendar week in which the claimant is eligible to receive applicable retirement benefits or adjustments to those benefits.

 

R994-401-302. Liability of Part-time Concurrent Reimbursable EmployersWhen There is No Job Separation from the Part-Time Reimbursable Employer.

(1) If the claimant worked [concurrently ]for two or more employers during the base period and is separated from one or more of these employers, but continues in the regular part-time work with a reimbursable employer, [that]the nonseparating part-time employer will not be liable for benefit costs provided;

(a) the claimant earned wages from a nonseparating employer within seven days prior to the date when the claim was filed,

(b) the claimant is not working on an "on call" basis,

(c) the number of hours of work [has]have not been reduced, and

(d) the nonseparating employer makes a request that it not be held liable for benefit costs within ten days of the first notification of the employer's potential liability.

(2) The claimant's WBA will be determined on the basis of the total base period employment and earnings, however, earnings from the part-time reimbursable employer will be excluded from the calculation of the MBA.

(3) If the claimant is later separated from this employer within the benefit year or the claimant's hours of work are reduced below the customary number of hours worked during the base period, the reimbursable employer will be liable to pay the proportionate amount of benefit payments paid thereafter. A new monetary determination can also be made at the request of the claimant and would include all base period wages. The effective date of the revised monetary determination will be the first day of the week in which the request is made. See R994-307-101 for contributory employers.

 

KEY: unemployment compensation, benefits

[November 16, 2004]2005

Notice of Continuation May 23, 2002

35A-4-401(1)

35A-4-401(2)

35A-4-401(3)

35A-4-401(6)