[Federal Register Volume 61, Number 57 (Friday, March 22, 1996)]
[Notices]
[Pages 11871-11874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6989]
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DEPARTMENT OF LABOR
Employment and Training Administration
Unemployment Compensation for Federal Employees Excepted Employee
Program; Unemployment Insurance Program Letters Implementing the
Unemployment Compensation for Federal Employees Excepted Employee
Program
On January 6, 1996, Public Law 104-92 was enacted. Section 312 of
Title III of the Act created the Unemployment Compensation for Federal
Employees Excepted Employee Program (UCFE-EEP) effective January 2,
1996. Under the UCFE-EEP, Federal employees excepted from furlough and
who are not being paid due to a lapse in appropriations shall be deemed
to be totally separated from Federal service and eligible for
unemployment
[[Page 11872]]
compensation under the regular UCFE program with no waiting period to
accrue for eligibility.
In its role as principal in the UCFE-EEP, the Department of Labor
issued controlling guidance for the States and cooperating State
agencies in the operating instructions set forth in Unemployment
Insurance Program Letter (UIPL) No. 7-96, dated January 24, 1996, and
UIPL 7-96, Change 1, dated March 8, 1996. The States administer the
UCFE Program pursuant to agreements between the States and the
Secretary of Labor. Since the UCFE-EEP is a sub-program of the UCFE
Program, the same agreement applies.
The States and cooperating State agencies may not vary from the
operating instructions provided in UIPL 7-96 or UIPL 7-96, Change 1,
(or any subsequent or supplemental operating instructions), without the
prior approval of the Department of Labor. Therefore, UIPLs No. 7-96
and 7-96, Change 1, are published below assuring public notification of
the required procedures.
Signed at Washington, DC on March 14, 1996.
Timothy M. Barnicle,
Assistant Secretary.
Directive: Unemployment Insurance Program Letter No. 7-96
To: All State Employment Security Agencies
From: Mary Ann Wyrsch, Director, Unemployment Insurance Service
Subject: Unemployment Compensation for Federal Employees (UCFE)--
Federal Employees Excepted from Furlough (UCFE-Excepted Employees
Program)
1. Purpose. To advise State Employment Security Agencies (SESAs)
of the provisions of Section 312 of Title III of P.L. 102-94
(Continuing Resolution) concerning eligibility for UCFE for Federal
civilian employees excepted from furlough and to provide
instructions for implementing the legislation to ensure the timely
and accurate payment of benefits under the UCFE-Excepted Employee
Program (UCFE-EEP) and to provide fiscal and reporting instructions.
2. References. Title III of P.L. 102-94 (H.R. 1643) enacted
January 6, 1996; Subchapter I of chapter 85, title 5 of the United
States Code (5 U.S.C. 8501 et seq.) (UCFE law); 20 CFR Part 609
(UCFE regulations); Secretary of Labor's Agreement with States to
administer the UCFE and Unemployment Compensation for Ex-
servicemembers (UCX) Programs.
3. Background. Generally, whenever there is a lapse in
appropriations to fund a Federal government agency, the agency must
shut down activities and furlough its employees. However, there are
exceptions that permit certain employees to remain working to
continue selected functions. This includes those functions which the
failure to perform would result in an imminent threat to the safety
of human life or the protection of property, or where there is an
implied authority by statute that the function should continue.
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Rescissions
None.
Expiration Date: January 31, 1997.
Unless there are special provisions enacted after the furlough
which retroactively provide a different outcome, furloughed
employees may be eligible for UCFE under subchapter I of chapter 85
of title 5 of the United States Code. However, employees excepted
from such furloughs would neither be compensated (because of the
laps in appropriations) nor eligible for UCFE because they perform
services during the furlough period and would not be considered
unemployed or otherwise eligible for benefits in accordance with
State and Federal laws governing the payment of unemployment
compensation.
Section 312 of P.L. 102-94 changes and suspends some UCFE
eligibility requirements, through September 30, 1996, to convey UCFE
eligibility to employees excepted from furlough who are not being
paid due to a lapse in appropriations. These changes have, in
effect, created a sub-program of the regular UCFE program which will
be known as the UCFE-Excepted Employees Program (UCFE-EEP).
The purpose of the UCFE-EEP is to provide a weekly payment to
unpaid workers who are excepted from furlough through September 30,
1996, similar to that paid under the UCFE program to furloughed
individuals. To the extent possible these instructions so provide;
however, in certain instances provisions have had to be changed or
new provisions added in order to provide a weekly benefit amount to
individuals not otherwise eligible for UCFE in the absence of
Section 312.
This document provides the Department's interpretation of the
requirements of Section 312 and sets forth operating instructions
prescribed by the Department to guide the States in implementing the
provisions of the UCFE-EEP.
4. Legal Requirements of Section 312 of P.L. 102-94.
Section 312 provides--
Eligibility for Unemployment Compensation.-- Nothwithstanding
any other provisions of law, beginning on January 2, 1996, any
Federal employee who is excepted from furlough and is not being paid
due to lapse in appropriations shall be deemed to be totally
separated from Federal service and eligible for unemployment
compensation benefits under subchapter I of chapter 85 of title 5 of
the United States Code with no waiting period for such eligibility
to accrue.
Section 8502(b) of 5 U.S.C. 8501 et seq., as implemented by 20
CFR 609.9(a) of the Secretary's regulations implementing the UCFE
program, relative to State law applicability, provides that--
Except where the result would be inconsistent with the
provisions of the Act or this part or the procedures thereunder
prescribed by the Department, the terms and conditions of the
applicable State law which apply to claims for, and the payment of,
State unemployment compensation shall apply to claims for, and the
payment of, UCFE and claims for waiting period credit.
To effectuate the provisions of Section 312 of P.L. 102-94, it
is necessary to differ, in part, from the State and Federal laws
normally governing the payment of UCFE. The exceptions to the laws
and regulations necessitated by this section are described in
section 7. below.
5. Effective Dates. Section 312, the UCFE-EEP provisions, are
effective beginning January 2, 1996 and remain in effect through the
end of Federal Fiscal Year (FY) 1996 (September 30, 1996). However,
it has been determined that only weeks of unemployment beginning on
or after January 27, 1996 are compensable under the provisions of
Section 312 as the Continuing Resolution provided for retroactive
pay for excepted employees from December 16, 1995 through January 6,
1996.
The Continuing Resolution which provided funding for Federal
agencies that are without FY 1996 appropriations expires on January
26, 1996. In the absence of another Continuing Resolution or FY 1996
appropriations for Federal agencies not funded, the UCFE-EEP will
become operations for UCFE-EEP claims filed for a week beginning on
or after January 27, 1996 and thereafter as long as such conditions
exist, through a week ending on or before September 30, 1996.
6. Policy. The instructions in this document are issued to the
States and the cooperating State agencies and constitute controlling
guidance provided by the Department of Labor in its role as the
principal in the UCFE program. As agents of the United States, the
States and the cooperating State agencies may not vary from the
operating instructions in this directive (or any subsequent or
supplemental operating instructions) without the prior approval of
the Department of Labor.
7. The Department's Interpretation of the Requirements of
Section 312 of P.L. 102-94 and Controlling Implementation Guidance.
The Department's interpretation is that all State and Federal
laws and regulations applicable to UCFE claims are applicable to
UCFE-EEP claims, except where the result of such application would
be inconsistent with the provisions of Section 312 of P.L. 102-94,
as described below.
Section 312 deems all excepted employees to be totally
unemployed with respect to Federal service and eligible for
unemployment compensation ``under'' the UCFE law for as long as such
excepted states continues (but not beyond September 30, 1996)
without having to serve any waiting week. Thus, even excepted
employees having insufficient wages under the State law base period
must be determined eligible, as well as excepted employees outside
the United States (i.e., outside the States of the United States,
District of Columbia, Puerto Rico and the Virgin Islands).
a. Notwithstanding the requirements governing the determination
of entitlement under the UCFE/State UI laws, a weekly benefit amount
for UCFE-EEP claimants must be established for all Federal employees
excepted from furlough who are not being paid due to a lapse in
appropriations and
[[Page 11873]]
who file such claims. (This includes excepted employees who would
otherwise have insufficient base period employment and wages to
establish monetary entitlement and excepted employees performing
excepted services outside the United States). The weekly benefit
amount so determined could potentially be paid through a week ending
on or before September 30k 1996. Therefore, the State law or Federal
law maximum total benefit amount does not apply, since, potentially,
an individual could receive UCFE-EEP for a number of weeks that
exceed any State's maximum.
b. Monetary entitlement for UCFE-EEP claims must be determined
under the qualifying requirements for regular UCFE claims by the
State in which the excepted employee's official duty station is
located or deemed located for purposes of UCFE-EEP. To effect this
requirement, all base period wages covered under any State or
Federal law will be used in computing UCFE-EEP entitlement under the
State law.
The official duty station of an excepted employee who is
performing services outside of the United States is deemed to be the
State in which the headquarters of the Federal agency is located.
c. Charges resulting from the payment of UCFE-EEP benefits must
be charges to the Federal agency that designated the individual
filing such claim as a Federal excepted employee.
d. Section 312 of P.L. 102-94 does not apply to weeks of
unemployment during which an individual is not in excepted employee
status. Therefore, UCFE-EEP benefits are not payable for weeks
during which the individual is not in excepted employee status. In
order to receive benefits for such weeks, an individual must
establish or have a separate claim in existence with a remaining
balance under any of the other unemployment programs and meet all
the eligibility conditions for the receipt of regular benefits.
3. Section 312 prohibits the application of any State or Federal
law requiring availability for work or active work search to UCFE-
EEP claims, including weeks claimed during which the excepted
employee performed no excepted services because of annual or sick
leave.
f. UCFE-EEP benefit eligibility will be determined in accordance
with UCFE/UI requirements defining total unemployment and deductible
earnings with respect to any services other than excepted Federal
service performed by an excepted employee during a week claimed
since Section 312 provides only that excepted service is treated as
being totally unemployed.
g. The pension deduction provisions of State law applies to
benefits payable under the UCFE-EEP.
h. Section 312 prohibits the application of any State or Federal
law requiring an unpaid waiting week or period as a condition to
receiving compensation for a week claimed by an excepted employee.
8. UCFE-EEP Implementation Instructions Based on the
Department's Interpretation of Section 312 of P.L. 102-94. Operating
procedures to implement the requirements of Section 312 of P.L. 102-
94 as prescribed by the Department are set forth below.
a. UCFE-EEP Claims Filing Procedures. Most excepted employees
will be performing full-time excepted services, during the weeks
involved in the furlough period. Since most excepted employees will
be working during the normal workday, SESAs should utilize methods
for filing claims that will allow an excepted employee to remain at
his/her job site.
If a State agency waives regular reporting provisions with
respect to excepted employees, no issue will arise with respect to
20 CFR 609.9.
b. Initial Claims.
(1) New. When a UCFE-EEP claim is filed, the State agency will
issue a UCFE-EEP monetary determination based on all employment and
wages during the base period applicable to the claim, without regard
to separate monetary entitlement under any State or Federal law,
including UCFE.
c. Monetary Entitlement.
(1) Excepted Employee has Sufficient Base Period Wages to
Qualify. Monetary entitlement for UCFE-EEP claims will be determined
by the State in which the excepted employee's official duty station
is located or deemed located, based on all base period employment
covered under any State or Federal law to establish the weekly
benefit applicable to the UCFE-EEP claim.
The Federal agency that designates the individual as an excepted
employee has been instructed to furnish the State agency, of the
State in which the excepted employee's official duty Station is
located or deemed located, with the excepted employee's name, social
security number, annual Federal salary, base period employment and
wage information, home address, and effective date of excepted
designation, within the first week of the Federal agency furlough,
in accordance with the format and procedures established with the
State agency prior to the beginning of such furlough. In the event
of a delay of submittal of required information by such Federal
agency or if it is deemed to be more expeditious, the SESA may
utilize an affidavit to determine entitlement as outlined in ET
Handbook 391, Chapter XIII, page XIII-2.
To obtain information pertaining to employment and wages covered
under another State's law, the State agency should follow its
regular procedures to obtain information pertaining to such wages,
including using the Request for Wage Transfer procedures (TC-IB4)
(or the Interstate Inquiry, IBIQ, via the ICON). However, if the TC-
IB4 is used, such use must not interfere with the processing of a
regular claim and the employment and wages must be returned as
unused.
(2) Excepted Employee has Insufficient Base Period Wages to
Qualify. If the excepted employee has insufficient employment and
wages in the base period to qualify, the State agency will prorate
the individual's annual salary, as reported by the Federal agency
that designated the individual as a Federal excepted employee, in
terms of quarters or weeks of wages in the base period, as
appropriate, and issue a monetary determination, accordingly. In
addition, the excepted worker's most recent earnings and leave
statement will reflect the excepted employee's annual and weekly
salary and may be utilized for the projection utilizing the
affidavit procedure.
d. UCFE-EEP Weeks Claimed. When an employee is designated as an
excepted employee, even for a portion of a week, such individual
shall be determined eligible for UCFE-EEP for the entire week. This
includes excepted employees who may be on leave during an entire
week or portion thereof.
e. Overpayments. Should an appropriation or continuing
resolution occur that retroactively provides for the payment of
salary to excepted employees, State and Federal laws governing
overpayments will need to be applied to weeks paid under the UCFE-
EEP program (20 CFR 609.11).
f. Relationship to Other Programs. Eligibility for UCFE-EEP has
no effect on unemployment compensation payable under any other State
or Federal law. Benefits under this program are payable only to an
excepted employee. If an excepted employee's status changes for any
week during the furlough period, UCFE-EEP benefits are not payable
and the individual must establish eligibility under the regular
requirements for such week.
9. Instructions for Reporting UCFE-EEP Transactions on Form ETA
2112. Advances and expenditures under the Excepted Employee Program
are to be reported on the ETA 2112 in the same manner as
transactions for the regular UCFE program.
Drawdowns: On line 23, include in columns C and E, amounts which
have been received as advances or reimbursements from the Federal
Employees Compensation Account (FECA) for payment of benefits to
Federal civilians under provisions of the UCFE-EEP. Disbursements:
On line 43, include in columns C and F, net benefit payments made to
Federal civilians under the UCFE-EEP with funds received from the
FECA.
10. Fiscal Requirements. All UCFE-EEP paid to an excepted
employee during the furlough period will be billed to the Federal
agency placing the individual in excepted employee status.
Administrative costs for the workload associated with UCFE-EEP
claims will be paid from contingency funds at the Fiscal Year 1996
allocated MPU level.
11. Reporting Instructions. While counts of UCFE-EEP claims will
be incorporated in the existing UCFE reporting, separate counts for
three items of data are required to track the UCFE-EEP claimants.
Separate counts should be reported weekly on: (a) the number of
individuals who file new and additional initial claims for UCFE-EEP
benefits; (b) the number of weeks of UCFE-EEP benefits that were
compensated during the report week; and (c) the amount of UCFE-EEP
benefits paid for those weeks.
Because this should be a temporary situation, this data is to be
reported electronically on the Quick Response Report. The Quick
Response Report is a blank report found in the UI Required Reports
(UIRR) electronic entry system. Once in the UIRR system, ``Access
Reports'' should be chosen, followed by ``Special Programs'' and
then ``arQuick Response Report''. This is a blank report where 12
unlabeled items may be
[[Page 11874]]
reported. Items 1 through 3 are already being used for Self
Employment data reporting in those few States which have that
program. Therefore, items 6, 7 and 8 will be used for UCFE-Expected
Employee claimant data reporting.
Fill in the report date item using the Saturday week ending date
of the week in which the activity occurred. Report in item 6 the
total number of initial claims, both new and additional, filed by
UCFE-EEP claimants during the report week. Report in item 7 the
total number of weeks compensated for UCFE-EEP claimants during the
report week. Report in item 8 the total amount of benefits paid for
the weeks reported in item 7. Please note in comments that the data
is for UCFE-EEP claimants. No edits are available on the Quick
Response Report.
This report will be due the Friday following the week in which
the activity took place. Reporting will continue as long as there is
activity. These reporting requirements have been submitted to the
Office of Management and Budget (OMB) for approval under the
Paperwork Reduction Act of 1995. States are not required to report
until that approval is received. When the approval is received,
States will be notified and provided the OMB approval number and
expiration data.
12. Action Required.
a. Department of Labor. The Department of Labor has instructed
affected Federal agencies, directly and through the Office of
Personnel Management (OPM), to furnish SESAs with the list of each
agency's excepted employees, including the employee's home address,
Social Security Number, annual Federal salary rate, effective date
of designation, and base period qualifying wage and employment
information. Also, Federal agencies are being instructed to furnish
an on-going list of employee changes to and from excepted employee
status if applicable. Once the State agency has been provided with
all of the information pertaining to an excepted employee, the
Federal agency will furnish only the pertinent information for
changes.
In addition, Federal agencies are being advised to establish a
liaison person(s) to work with each SESA in administering the UCFE
program for excepted workers. This may be the same person already
assigned UCFE program liaison responsibilities.
To the extent possible, the Department of Labor National Office
and Regional Offices will work with the affected Federal agencies to
provide information to the SESAs that will expedite and
administratively ease the establishment of UCFE-EEP by the SESAs.
b. State Agencies. SESA Administrators shall:
(1) Provide the above guidance in this UIPL to appropriate
staff.
(2) Ensure that appropriate staff perform all actions necessary
to provide for the proper payment of UCFE-EEP to excepted employees
for a program that could begin as early as January 27, 1996. This
will include--
(A) When contacted by the Federal agency liaison, coordinating
with such individual(s) actions necessary to receive the
information, described in section a. above and any other actions
determined necessary by the State agency, that will enable UCFE-EEP
claims to be processed. The claims filing procedures that excepted
employees are to follow should also be explained to the Federal
agency;
(B) Establishing UCFE-EEP claims for excepted employees in a
prompt manner, minimizing any in-person reporting by such employees.
For example, the State could send appropriate claims forms to
individuals identified by the Federal agency as excepted employees
in order for such individuals to file claims;
(C) Promptly determining monetary eligibility for UCFE-EEP
claims based on base period qualifying employment and earnings or
the annual salary figure supplied by the Federal agency and/or the
earnings and leave statement furnished by the applicant through the
use of the ES-935 affidavit process in the absence of base period
wages reported by the Federal agency;
(D) Making prompt payment of UCFE-EEP benefits to excepted
employees including payment for what would otherwise be a waiting
period;
(E) Developing any other procedures with Federal agencies that
will ease administration of this special program;
(F) Adhering to the fiscal guidelines set forth in this document
and furnishing required reports in a timely manner.
13. Inquiries. Questions should be directed to the appropriate
Regional Office.
Directive: Unemployment Insurance Program Letter No. 7-96, Change 1
To: All State Employment Security Agencies
From: Mary Ann Wyrsch, Director, Unemployment Insurance Service
Subject: Unemployment Compensation for Federal Employees (UCFE)
Excepted Employee Program (UCFE-EEP)
1. Purpose. To inform States of Office of Management and Budget
approval of the reporting on the UCFE-EEP and to correct the
reference to Public Law (P.L.) 104-92 in UIPL 7-96.
2. Reference. UIPL 7-96.
3. OMB Approval. Reporting requirements set forth in the
referenced UIPL are approved by OMB under the Paperwork Reduction
Act of 1995. The OMB number is 1205-0364 with an expiration date of
April 30, 1996. States are not required to respond to this
collection of information unless it displays a currently valid OMB
control number.
4. Burden Estimate. Public reporting burden for this collection
of information is estimated to average 1 hour per response,
including the time for reviewing instructions, searching existing
data sources, gathering and maintaining the data needed, and
completing and reviewing the information. Send comments regarding
this burden estimate or any other aspect of this collection of
information, including suggestions for reducing this burden, to the
U.S. Department of Labor. Office of Unemployment Insurance, 200
Constitution Avenue NW., Room S-4519, Washington, D.C. 20210
(Paperwork Reduction Project 1205-0364).
5. Correction to UIPL 7-96. All referenced to P.L. 102-94 in
UIPL 7-96 should be changed to read P.L. 104-92.
6. Action Required. States are now required to report UCFE-
Excepted Employee data, when appropriate as outlined in the
referenced UIPL.
7. Questions. Inquiries should be directed to the appropriate
Regional Office.
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Rescissions
None.
Expiration date:
[FR Doc. 96-6989 Filed 3-21-96; 8:45 am]
BILLING CODE 4510-30-M