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Background: A provision to a final UCX rule published in the Federal Register on October 17, 1988, required the SESAs to send, effective November 16, 1988, notices of claims filed and subsequent monetary and nonmonetary determinations to the branches of the military and to individuals separated from the Commissioned Corps of the National Oceanic and Atmospheric Administration (NOAA) and the Coast Guard. SESAs were provided with a list of military addresses via UIPL No. 19-94, Change 7. Subsequently, the U.S. Army has provided a new address for such notices. Action Required: State Administrators should provide the attached list of military addresses to appropriate staff and advise them to immediately discontinue using the list of military liaison addresses provided in UIPL No. 19-94, Change 7.

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References: Chapter IV, ET Handbook No. 384, Second Edition, 20 CFR 614.12 and 5 U.S.C. 8521(a)(2). Instructions: State Employment Security Agencies (SESAs) shall use the attached schedule to determine Federal military wages for UCX "first claims" filed beginning with the first day of the first week which begins after April 4, 1998, pursuant to 20 CFR 614.12. SESAs will continue to use the existing schedule for UCX "first claims" filed before the effective date of the attached revised schedule. As provided by 20 CFR 614.12(d), the attached schedule shall be published as a notice in the Federal Register. Action Required: Administrators should provide the above instructions and the attached revised schedule to appropriate staff.

References: Section 3306(t) of the Federal Unemployment Tax Act (FUTA); North American Free Trade Agreement Implementation Act (NAFTA), P.L. No. 103-182; Unemployment Insurance Program Letter (UIPL) No. 14-94. Background: The NAFTA, P.L. No. 103-182, among other things, amended Federal law to give States the option of permitting certain individuals to receive a SEA payment from the State's unemployment fund for the purpose of assisting such individuals in establishing businesses and becoming self-employed. These SEA payments are authorized only during the 5 years following NAFTA's date of enactment. Since NAFTA was enacted on December 8, 1993, the SEA program provisions were effective on that date and expire on December 8, 1998. See UIPL 14-94, pages 1 and 14. Since at this time there is no legislation pending before Congress that authorizes States to continue operating a SEA program beyond December 8, 1998, we are issuing this UIPL to remind States that their SEA programs must be terminated. Phase-out: 0SEA allowances are payable only for the period for which Federal authorization permits the program to operate, which is prior to December 8, 1998. SEA payments may be issued on and after December 8, 1998, but only with respect to periods of time prior to December 8, 1998. States may phase out the SEA program by establishing a cut-off date prior to December 8, 1998, for enrolling new SEA participants. This would allow the time needed for SEA participants to receive all SEA allowances and participate in all activities and prevent the possibility of some participants not receiving all SEA allowances. Enrolling claimants into a program that will expire before the participants will have the opportunity to receive all allowances or engage in all required activities would likely result in unfavorable reactions from the participants and unwanted publicity. Alternatively, States could provide claimants with the options of either receiving their maximum benefit amount (MBA) under the regular UI program, or participating in the SEA program with the understanding that their MBA will not be payable as SEA allowances. Action: We encourage States to take appropriate action to assure the smooth phase-out of the SEA program. State Administrators are requested to provide this information to appropriate staff.

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Reference: Unemployment Insurance Program Letter (UIPL) No. 3-92. UIPL NO. 37-93, UIPL No. 40-94, UIPL No. 32-95, and UIPL No. 25-96. Background: The referenced UIPLs published the ERI for Rate Years 1988 - 1995. Attachment I shows the ERI by State for Rate Years 1988 - 1996. Attachment II shows the ERI and the individual components involved in the calculations for States for Rate Year 1996 and is a continuation of the series. Attachment III describes how the Experience Rating Index is calculated. Action Required: Please distribute to appropriate staff.

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