UIPL_8-14-Acc.pdf

ETA Advisory File Text

RESCISSIONS None EXPIRATION DATE December 31 2014 ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 8-14 TO STATE WORKFORCE AGENCIES FROM ERIC M. SELEZNOW s Acting Assistant Secretary SUBJECT Interest Rate on Title XII Advances During Calendar Year CY 2014 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 2014. 2. References. Sections 303 and 1202 of the Social Security Act SSA Section 3304 of the Federal Unemployment Tax Act FUTA and 20 CFR part 606. 3. 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. In brief the interest rate for a CY is the earnings yield on the Unemployment Trust Fund UTF for the quarter ending December 31 of the previous CY. 4. CY 2014 Interest Rate. The Treasury has established the earnings yield on the UTF for the quarter ending December 31 2013 to be 2.3874 percent. As such this becomes the rate of interest that will be charged to repayable Title XII advances during CY 2014. 5. Action Requested. States expecting to request a Title XII advance should take necessary action to establish a mechanism to provide funds for the payment of interest on those advances in accordance with the provisions of Section 1202 b SSA and subject to the limitations in Section 303 c 3 and 1202 b 5 SSA and Section 3304 a 17 FUTA. In summary interest 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 unemployment delays. For further information concerning relief from Title XII interest payments see 20 CFR part 606 subparts D and E. 6. Inquiries. Questions should be directed to the appropriate Regional Office. EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION UI CORRESPONDENCE SYMBOL OUI DFAS DATE February 18 2014