TEN_21-21_acc.pdf

ETA Advisory File Text

TRAINING AND EMPLOYMENT NOTICE NO. 21-21 DATE February 14 2022 EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TO STATE WORKFORCE AGENCIES STATE WORKFORCE LIAISONS OTHER As applicable FROM ANGELA HANKS s Acting Assistant Secretary SUBJECT Interest Rate on Title XII Advances During Calendar Year CY 2022 1. Purpose . To announce the rate of interest that the U.S. Department of the Treasury Treasury will charge on Title XII advances during CY 2022. 2. Action Requested . States expecting to require advance s under Title XII of the Social Security Act SSA should take necessary action to establish a mechanism to provide funds for the payment of interest incurred on any such advances in accordance with t he provisions of the Social Security Act 1 SSA and the Federal Unemployment T ax Act 2 FUTA subject to the limitations in both SSA and FUTA 3. 3. Summary and Background . a. Summary Interest on Title XII advances is due and payable each September 30 and may not be paid from the state s unemployment fund or from Federal funds. However there are several provisions for interest relief including Cash flow loans May September delays High -unemployment deferrals and High - unemploymen t delays. For further information concerning relief from Title XII interest payments see 20 CFR part 606 subparts D and E. b. Background The criteria for establishing the rate of interest to be charged on Title XII advances during any CY are described in Section 1202 b 4 SSA which specifies that the annual interest rate is the quarterly yield earned by the Unemployment Trust Fund UTF during the fourth quarter of the previous CY. 4. CY 2022 Interest Rate . Treasury has established the yield earned by the UTF for the quarter ending December 31 2021 to be 1.5909 percent. This becomes the rate of interest that will be charged to repayable Title XII advances obtained during CY 2022.1 SSA Section 1202 42 U.S.C. 1322 2 FUTA Section 3304 a 17 26 U.S.C. 3304 a 17 3 SSA Sections 303 c 3 and 1202 b 5 42 U.S.C. 503 c 3 and 1322 b 5 and FUTA Section 3304 a 17 26 U.S.C. 3304 a 17 2 5. Inquiries. Questions should be directed to the appropriate Employment and Training Administration Regional Office. 6. References. SSA Sections 303 c 3 and 1202 b 5 42 U.S.C. 503 c 3 and 1322 b 5 FUTA Section 3304 a 17 26 U.S.C. 3304 a 17 and 20 CFR part 606 subparts D and E.