Federally-funded Unemployment Benefits Reduced Due to Sequester

Contact: Melanie Brown 517-373-9280
Agency: Unemployment Insurance Agency

September 20, 2013 - The Unemployment Insurance Agency (UIA) has been informed by the U.S. Department of Labor that the Emergency Unemployment Compensation (EUC) benefit reduction due to the federal sequester has changed from 10.7 percent to 7.2 percent. The new reduction rate is effective October 1, 2013.

All claimants who are currently collecting or will be collecting EUC benefits will see a reduction in their weekly benefit amount of 7.2 percent. For claimants collecting EUC prior to October 5, 2013, this change means there will be an increase in their current payment amount. The first payable week ending date is October 5, 2013.

The federally funded EUC program provides up to 34 weeks of extended benefits for people who have exhausted their regular state benefits.

A letter will be mailed to claimants informing them of the reduction in their benefits. Claimants should continue to report via Michigan’s Automated Response Voice Interactive Network (MARVIN) on their scheduled day and time.

For additional information regarding the EUC program, claimants may contact the UIA in the following ways:

• Visit the UIA website at www.michigan.gov/uia to review EUC program updates or to submit an inquiry to the Agency’s Virtual Problem Resolution (ViPR) agents.
• Call the UIA Emergency Unemployment Compensation hotline, 1-800-638-3995 for pre-recorded updates to EUC program information.
• Call the UIA Customer Service Line at 1-866-500-0017. Customer Service representatives are available Monday through Friday from 8:00 a.m. to 4:30 p.m.
• Visit a UIA Problem Resolution Office (PRO) for in-person assistance. There are 15 PROs statewide. Visit the UIA website at www.michigan.gov/uia for a list of locations. 

Due to potentially high call volumes, and wait times in offices, the Agency recommends customers interact with its ViPR agents through an online claim web account. To register for an online claim web account, visit www.michigan.gov/uia and select “UIA Online Services for Unemployed Workers.” 

Those who have exhausted unemployment benefits can find additional resources for health care, family support, housing, and more, by visiting www.michigan.gov/helpinghand. Unemployed workers should also visit Pure Michigan Talent Connect at www.mitalent.org for information regarding job and training opportunities.

The UIA continues to partner with Michigan Works! Service Centers to offer valuable re-employment, training and educational opportunities and to provide resource information to claimants regarding other available state resources, as well as other supportive services that may be available. Michigan Works! locations can be found at www.michiganworks.org.

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What is EUC?
During periods of high unemployment in a state, Emergency Unemployment Compensation (EUC) may become available to workers who have exhausted their regular state unemployment benefits. The EUC program provides up to 34 weeks of UI benefits. The program is funded by the federal government.

On January 1, 2013, Congress passed legislation which extends Emergency Unemployment Compensation (EUC) through the end of 2013. The last week payable for the EUC program will be week ending December 28, 2013.

What is the Federal Sequester? And how does it affect EUC benefits?
Sequestration is a term used to describe the practice of using mandatory spending cuts in the federal budget.

Beginning October 1, 2013, as a result of the Federal Sequester, the reduction affecting the Weekly Benefit Amount (WBA) of claimants who are currently receiving EUC has changed from 10.7 percent to 7.2 percent.

• Example: If your WBA is $362, your new WBA is $335. 

What actions do claimants take to receive EUC benefits?
Those who have an EUC claim should continue to certify for benefit payments by phone or online on their regular appointment date and time through the Michigan Automated Voice Interactive Network (MARVIN). No other action needs to be taken by claimants. Affected claimants will receive a letter informing them of the reduction in their benefits due to sequestration.

We strongly encourage claimants to stay informed on the status of the EUC program by calling the EUC hotline at 1-800-638-3995 and via the agency website at michigan.gov/uia.

How long will these Federal Sequester reduction cuts be in effect?
These reductions will be in effect until new federal guidelines are issued.

How many claimants are currently receiving unemployment benefits through Michigan’s Unemployment Insurance Agency?
Currently 118,329 people are receiving benefits in Michigan. This includes regular state unemployment benefits and EUC. Of that number 48,378 are collecting EUC benefits.

Are there additional requirements for claimants entering EUC?
Yes. Individuals who are entering Tier 1 of the EUC program are required to report-in person to a local Michigan Works! Office for reemployment services. Additionally, EUC claimants must continue to submit documentation of their work searches to the UIA prior to biweekly certification through MARVIN or MARVIN Online. Individuals are required to report the details and results of their work search on Form UIA 1583 Monthly Record of Work Search.

How can a claimant determine how many weeks of benefits he/she will receive?
Claimants can access this information online through their Claim Web Account or call MARVIN (Michigan Automated Response Voice Interactive Network) at 1-866-638-3993 and select Option 2.

What criterion is used to qualify states for the EUC program?
The federal government established unemployment rate thresholds that the states must meet in order to remain eligible for the EUC program. In Michigan, the total unemployment rate (TUR) must be at a certain percentage (based on a three month average) for the state to remain eligible for EUC. Michigan’s three month average TUR must remain at 9 percent or above to be eligible to provide all four tiers of the EUC program.

How is the federal unemployment benefit program funded?
The federal government funds the EUC program. Michigan employers are not charged for any EUC benefits paid to claimants.

When is the last week payable for EUC benefits?
The last week payable for the EUC program will be week ending Dec. 28, 2013, regardless of any remaining weeks left on any EUC claim.

What should claimants do if they will soon exhaust their EUC benefits?
Unemployed workers with online web accounts with the UIA can check their "Benefit Payment History" for information about their remaining weeks of benefits. Workers who have not established online accounts can call MARVIN at 1-866-638-3993 and press option 2. Additional information about the end of EUC will be posted on the UIA website (www.michigan.gov/uia). In addition, the Agency has established a toll-free telephone number 1-866-MI-HELPS (1-866-644-3577) for people to call for pre-recorded information about the extension program and their remaining benefits. Individuals can visit http://www.mitalent.org for job and training information. 

How can claimants find out more about EUC?
We strongly encourage claimants to stay informed on the status of the EUC program by calling the EUC hotline at 1-800-638-3995 and via the agency website at michigan.gov/uia - click the red EUC Extension button for more information.

• Submit an inquiry to the Agency’s Virtual Problem Resolution (ViPR) agents who are available Monday through Friday from 8:00 a.m. to 4:30 p.m. Visit the UIA website at www.michigan.gov/uia.
• Call the UIA Customer Service Line at 1-866-500-0017. Customer Service representatives are available Monday through Friday from 8:00 a.m. to 4:30 p.m.
• Visit a UIA Problem Resolution Office (PRO) for in-person assistance. Visit the UIA website at www.michigan.gov/uia for a list of locations.