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Archived News Release — Caution: Information may be out of date.
OPA News Release: [03/04/2004]
Contact Name: Ed
Frank
Phone Number: (202) 693-4676
Labor Secretary Elaine L. Chao Says Proposed UI Reforms,
Personal Reemployment Accounts Will Help Workers
WASHINGTON—U.S. Labor Secretary Elaine L. Chao today told
the U.S. House Ways and Means Committee that proposed improvements to the
federal-state Unemployment Insurance (UI) program and the establishment of
Personal Reemployment Accounts (PRAs) will help strengthen the employment
system for America’s workers.
“Approximately 112,000 new jobs were created in January—the
largest monthly increase since December 2000—and 366,000 jobs have been
added over the last five months,” Secretary Chao testified. “Despite
the improvement we have seen, this Administration will not be satisfied until
every American who wants a job can find one.
“Our proposed reforms would strengthen the financial integrity and
fortify the solvency of the UI program,” Chao said. “Personal
Reemployment Accounts will give UI claimants unprecedented choice in accessing
the services they need to get back to work as quickly as possible.”
In her testimony, Secretary Chao outlined the Administration’s
three-pronged proposal to strengthen the integrity of the UI program:
- Stop SUTA Dumping. The Administration’s proposal would close a
loophole in many state UI laws that allow some unscrupulous employers to pay
less than their fair share of state unemployment taxes, a practice known as
“SUTA dumping.”
- Expand Access to National Directory of New Hires. Giving all states
access to this HHS-created database will help them quickly detect fraud and
preserve state UI trust funds.
- Allow States to Use Treasury Offset Program (TOP) Approximately $3
billion could be re-deposited into UI trust funds over the next decade if
states are granted access to federal income tax refunds when collecting
overpayments from claimants who receive benefits to which they are not
entitled.
Secretary Chao also pointed out that the President’s budget
includes $50 million to launch the Personal Reemployment Account project as a
pilot that would demonstrate its value before replicating it nationwide. PRAs
would provide up to $3,000 to selected workers who are most likely to exhaust
their benefits.
“The Personal Reemployment Accounts would empower each individual
to choose the training programs and services that would be the best fit,”
Chao noted.
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Archived News Release — Caution: Information may be out of date.
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