TEN_16-19_acc.pdf

ETA Advisory File Text

TRAINING AND EMPLOYMENT NOTICE NO. 16-19DATE January 30 2020EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TO STATE WORKFORCE AGENCIES FROM JOHN PALLASCH s Assistant Secretary SUBJECT Interest Rate on Title XII Advances During Calendar Year CY 2020 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 2020. 2.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 Social Security Act SSA 42 U.S.C 1322 b and subject to the limitations in Section 303 c 3 and 1202 b 5 SSA 42 U.S.C. 503 c 3 and 1322 b 5 and Section 3304 a 17 Federal Unemployment Tax Act FUTA 26 U.S.C. 3304 a 17 . 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. HoweverI 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. b.Background - The criteria for establishing the rate of interest to be charged on Title XIf advances during any CY are described in Section 1202 b 4 SSA 42 U.S.C. 1322 b 4 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 2020 Interest Rate. Treasury has established the yield earned by the UTF for the quarter ending December 31 2019 to be 2.4087 percent. This becomes the rate of interest that will be charged to repayable Title XII advances obtained during CY 2020. 5.Inquiries. Questions should be directed to the appropriate Employment and Training Administration Regional Office. 2 6. References. S ections 303 and 1202 SSA Section 3304 FUTA and 20 C FR part 606. 7. At tachment s . Not Applicable.