Federal-State Extended Benefits Program-Methodology for Calculating “on” or “off” Total Unemployment Rate Indicators for Purposes of Determining When a State Begins and Ends an Extended Benefit Period, 34270-34271 [2011-14478]
Download as PDF
<![CDATA[
34270
Federal Register / Vol. 76, No. 113 / Monday, June 13, 2011 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
protected in the decision for the Plan to
acquire and hold the Rights in that such
decision was made by the Board which
was independent of management and
Bancorp.
The accounts of Invested Participants
in the Plan were protected against
economic loss in that, if on November
15, 2010, the trading price of the Stock
was not greater than $0.20 per share, all
Rights that such Invested Participants
had elected to exercise would be
immediately cancelled.
18. In summary, Bancorp represents
that the subject transactions satisfy the
statutory criteria of section 408(a) of the
Act and section 4975(c)(2) of the Code
because:
(a) The receipt by the Plan of the
Rights occurred in connection with the
Offering made available by Bancorp on
the same terms to all shareholders of the
Stock of Bancorp;
(b) The acquisition of the Rights by
the Plan resulted from an independent
act of Bancorp, as a corporate entity,
and all holders of the Rights, including
the Plan, were treated in the same
manner with respect to the acquisition
of such Rights;
(c) Each shareholder of the Stock,
including the Plan, received the same
proportionate number of Rights based
on the number of shares of Stock of
Bancorp held by such shareholder;
(d) The Board decided that the
Offering should be made available to all
shareholders of the Stock, including the
Plan, as record owner of the Stock held
in the Plan on behalf of the accounts of
the Invested Participants, all or a
portion of whose accounts in the Plan
are invested in the Stock, in accordance
with provisions under such Plan for
individually-directed investment of
such accounts;
(e) The decision to exercise the Rights
or to refrain from exercising the Rights
was made by each of the Invested
Participants in accordance with the
provision under the Plan for
individually-directed accounts; and
(f) No brokerage fees, commissions,
subscription fees, or any other charges
were paid by the Plan with respect to
the Offering, and no brokerage fees,
commissions, or other monies were paid
by the Plan to any broker in connection
with the exercise of the Rights.
Notice to Interested Persons
The persons who may be interested in
the publication in the Federal Register
of the Notice of Proposed Exemption
(the Notice) include current participants
and beneficiaries, former participants
and beneficiaries, who were participants
and beneficiaries as of the Record Date,
alternate payees, the Committee, the
VerDate Mar<15>2010
16:06 Jun 10, 2011
Jkt 223001
Board, and the administrator, all
trustees of the plan, and any other
parties determined to be ‘‘interested
persons.’’
It is represented that each of these
classes of interested persons will be
notified of the publication of the Notice
by first class mail, within fifteen (15)
days of publication of the Notice in the
Federal Register. Such mailing will
contain a copy of the Notice, as it
appears in the Federal Register on the
date of publication, plus a copy of the
Supplemental Statement, as required,
pursuant to 29 CFR 2570.43(b)(2), which
will advise all interested persons of
their right to comment and to request a
hearing.
All written comments and/or requests
for a hearing must be received by the
Department from interested persons
within 45 days of the publication of this
proposed exemption in the Federal
Register.
For Further Information Contact: Ms.
Angelena C. Le Blanc of the Department,
telephone (202) 693–8540. (This is not
a toll-free number.)
General Information
The attention of interested persons is
directed to the following:
(1) The fact that a transaction is the
subject of an exemption under section
408(a) of the Act and/or section
4975(c)(2) of the Code does not relieve
a fiduciary or other party in interest or
disqualified person from certain other
provisions of the Act and/or the Code,
including any prohibited transaction
provisions to which the exemption does
not apply and the general fiduciary
responsibility provisions of section 404
of the Act, which, among other things,
require a fiduciary to discharge his
duties respecting the plan solely in the
interest of the participants and
beneficiaries of the plan and in a
prudent fashion in accordance with
section 404(a)(1)(b) of the Act; nor does
it affect the requirement of section
401(a) of the Code that the plan must
operate for the exclusive benefit of the
employees of the employer maintaining
the plan and their beneficiaries;
(2) Before an exemption may be
granted under section 408(a) of the Act
and/or section 4975(c)(2) of the Code,
the Department must find that the
exemption is administratively feasible,
in the interests of the plan and of its
participants and beneficiaries, and
protective of the rights of participants
and beneficiaries of the plan;
(3) The proposed exemptions, if
granted, will be supplemental to, and
not in derogation of, any other
provisions of the Act and/or the Code,
including statutory or administrative
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
exemptions and transitional rules.
Furthermore, the fact that a transaction
is subject to an administrative or
statutory exemption is not dispositive of
whether the transaction is in fact a
prohibited transaction; and
(4) The proposed exemptions, if
granted, will be subject to the express
condition that the material facts and
representations contained in each
application are true and complete, and
that each application accurately
describes all material terms of the
transaction which is the subject of the
exemption.
Signed at Washington, DC, this 8th day of
June, 2011.
Ivan Strasfeld,
Director of Exemption Determinations,
Employee Benefits Security Administration,
U.S. Department of Labor.
[FR Doc. 2011–14520 Filed 6–10–11; 8:45 am]
BILLING CODE 4510–29–P
DEPARTMENT OF LABOR
Employment and Training
Administration
Federal-State Extended Benefits
Program—Methodology for Calculating
‘‘on’’ or ‘‘off’’ Total Unemployment Rate
Indicators for Purposes of Determining
When a State Begins and Ends an
Extended Benefit Period
Employment and Training
Administration, Labor.
ACTION: Notice.
AGENCY:
UIPL 16–11 informs states of
the methodology used to calculate the
‘‘on’’ or ‘‘off’’ total unemployment rate
(TUR) indicators to determine when
extended benefit (EB) periods begin and
end in a state. UIPL 16–11 is published
below to inform the public and is
available at: https://wdr.doleta.gov/
directives/corr_doc.cfm?DOCN=3027.
SUPPLEMENTARY INFORMATION:
SUMMARY:
UIPL 16–11: Federal-State Extended
Benefits Program—Methodology for
Calculating ‘‘on’’ or ‘‘off’’ Total
Unemployment Rate Indicators for
Purposes of Determining When a State
Begins and Ends an Extended Benefit
Period
1. Purpose. To inform states of the
new methodology used to calculate the
‘‘on’’ or ‘‘off’’ total unemployment rate
(TUR) indicators to determine when
extended benefit (EB) periods begin and
end in a state.
2. References. The Federal-State
Extended Unemployment Compensation
Act of 1970 (EUCA); Section 2005 of
Division B, Title II, the Assistance for
E:\FR\FM\13JNN1.SGM
13JNN1
emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 113 / Monday, June 13, 2011 / Notices
Unemployed Workers and Struggling
Families Act, Public Law (Pub. L.) 111–
5; Section 502 of the Tax Relief,
Unemployment Insurance
Reauthorization, and Job Creation Act of
2010, Public Law 111–312; 26 U.S.C.
3304(a)(11) note; 20 CFR 615.12;
Unemployment Insurance Program
Letter (UIPL) No. 45–92; UIPL No. 4–10,
Change 6.
3. Background. EB is payable in a
state only during an EB period in the
state, that is, a period of unusually high
unemployment. Section 203, EUCA,
provides methods for determining
whether a state’s current unemployment
situation qualifies as an EB period. EB
periods are determined by ‘‘on’’ and ‘‘off’’
indicators (commonly referred to as
triggers) in the state. Section 203(d),
EUCA, provides for an ‘‘on’’ indicator
based on the insured unemployment
rate (IUR). The IUR is calculated weekly
by the states using administrative data
on state unemployment compensation
claims filed and the total population of
employed individuals covered by
unemployment insurance. States trigger
‘‘on’’ EB if the IUR for the most recent
13-week period equals or exceeds 5
percent and equals or exceeds 120
percent of the average of such rates for
the corresponding 13-week period
ending in each of the preceding two
calendar years. The calculation of the
relationship between the current rate
and prior year’s rates is commonly
referred to as the ‘‘look-back.’’
The Unemployment Compensation
Amendments of 1992, Pub. L. 102–318,
added Section 203(f), EUCA, to provide
for an optional alternative indicator that
states may use to trigger ‘‘on’’ EB based
on the TUR. That indicator requires
that, for the most recent three months
for which data for all states is
published, the average TUR in the state
(seasonally adjusted) for the most recent
three-month period equals or exceeds
6.5 percent and the average TUR in the
state (seasonally adjusted) equals or
exceeds 110 percent of the average TUR
for either or both of the corresponding
three-month periods in the two
preceding calendar years (look-back).
The 1992 amendments also provided for
a calculation of a ‘‘high unemployment
period’’ when the TUR in a state equals
or exceeds 8 percent and meets the 110
percent look-back described above,
permitting the payment of additional
weeks of EB. Section 203(f)(3), EUCA,
provides that ‘‘determinations of the rate
of total unemployment in any state for
any period * * * shall be made by the
Secretary.’’ An EB period ends when the
state no longer meets any of the ‘‘on’’
triggers provided for in state law.
VerDate Mar<15>2010
16:06 Jun 10, 2011
Jkt 223001
Regulations at 20 CFR 615 implement
the provisions of EUCA relating to the
IUR indicators, including how they will
be calculated. The regulation, at 20 CFR
615.12, explains the IUR triggers and
how the rates are calculated. The
regulation does not address the TUR
indicator. The Department is issuing
this guidance to describe how the TUR
indicators are calculated for purposes of
determining whether a state meets the
110 percent look-back requirement. The
Department plans to promulgate
regulations about this methodology in
the near future.
In the absence of explicit guidance
and regulation, the Department
previously adapted a portion of the
existing guidance for the IUR look-back
indicator as a basis for calculating the
TUR look-back indicator as well.
Specifically, in computing the look-back
percentage for the TUR trigger the
procedure for determining the number
of significant digits from the resulting
fraction followed 20 CFR 615.12(c)(3).
The TUR trigger is calculated using
unemployment rates determined by the
Bureau of Labor Statistics. These rates
are determined using sampled data and
therefore have error around them. In
contrast, IUR triggers are calculated
from administrative data and thus
represent the full universe. Because of
these differences in the calculation of
the insured and total unemployment
rates, the Department has determined
that an appropriate methodology for
calculating the look-back on the TUR
indicator is to switch from truncation at
the fourth decimal place as used for the
IUR to rounding at the second decimal
place.
The Tax Relief, Unemployment
Insurance Reauthorization, and Job
Creation Act of 2010 permitted states to
amend state law in order to make
determinations of whether there is an
‘‘on’’ or ‘‘off’’ indicator by comparing
current unemployment rates to the
unemployment rates for the
corresponding period in the three
preceding years. Authority to use this
three-year look-back applies only for
weeks of unemployment beginning after
December 17, 2010, and ending on or
before December 31, 2011. The
Department will also use the
methodology described below in
determining whether a state meets the
three-year TUR look-back criteria for
those states that chose to amend their
law to take advantage of this temporary
authority.
4. Methodology. The Department will
now use the following method of
computing the current rate as a
percentage of the comparable rate in
prior years (look-back) for the TUR
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
34271
indicator: On a monthly basis, the three
month average, seasonally adjusted rate
of total unemployment is divided by the
same measure for the corresponding
three months in each of the applicable
prior years, that is, either a two- or
three-year look-back, as specified in
state law. The resultant decimal fraction
is then rounded to the hundredths place
(the second digit to the right of the
decimal place). The resulting number is
then multiplied by 100 and reported as
an integer and compared to the statutory
threshold to determine the state’s trigger
status.
5. Effective date of implementation. In
order to give full effect to this
methodology, and to ensure that all
unemployed individuals who are
eligible to receive EB are paid in a
timely manner, the Department is
implementing the methodology
described in Section 4 of this guidance
retroactive to April 16, 2011.
6. Action requested. Administrators
are to provide this information to the
appropriate staff.
7. Inquiries. Please direct inquiries to
the appropriate Regional Office.
Dated: June 6, 2011.
Jane Oates,
Assistant Secretary, Employment and
Training Administration.
[FR Doc. 2011–14478 Filed 6–10–11; 8:45 am]
BILLING CODE 4510–FN–P
DEPARTMENT OF LABOR
Employment and Training
Administration
[TA–W–74,671]
Hewlett Packard, Global Parts Supply
Chain, Global Product Life Cycles
Management Unit, Including
Teleworkers Reporting to Houston, TX;
Notice of Intent To Terminate
Certification Regarding Eligibility To
Apply for Worker Adjustment
Assistance
In accordance with Section 223 of the
Trade Act of 1974, as amended (‘‘Act’’),
19 U.S.C. 2273, the Department of Labor
issued a Certification of Eligibility to
Apply for Worker Adjustment
Assistance on November 8, 2010,
applicable to workers and former
workers of Hewlett Packard, Global
Parts Supply Chain, Global Product Life
Cycles Management Unit, including
teleworkers reporting to Houston, Texas
(subject firm). The Department’s Notice
of certification was published in the
Federal Register on November 23, 2010
(75 FR 71460).
At the request of the State of Texas,
the Department reviewed the
E:\FR\FM\13JNN1.SGM
13JNN1
]]>Agencies
[Federal Register Volume 76, Number 113 (Monday, June 13, 2011)]
[Notices]
[Pages 34270-34271]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14478]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Employment and Training Administration
Federal-State Extended Benefits Program--Methodology for
Calculating ``on'' or ``off'' Total Unemployment Rate Indicators for
Purposes of Determining When a State Begins and Ends an Extended
Benefit Period
AGENCY: Employment and Training Administration, Labor.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: UIPL 16-11 informs states of the methodology used to calculate
the ``on'' or ``off'' total unemployment rate (TUR) indicators to
determine when extended benefit (EB) periods begin and end in a state.
UIPL 16-11 is published below to inform the public and is available at:
https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3027.
SUPPLEMENTARY INFORMATION:
UIPL 16-11: Federal-State Extended Benefits Program--Methodology for
Calculating ``on'' or ``off'' Total Unemployment Rate Indicators for
Purposes of Determining When a State Begins and Ends an Extended
Benefit Period
1. Purpose. To inform states of the new methodology used to
calculate the ``on'' or ``off'' total unemployment rate (TUR)
indicators to determine when extended benefit (EB) periods begin and
end in a state.
2. References. The Federal-State Extended Unemployment Compensation
Act of 1970 (EUCA); Section 2005 of Division B, Title II, the
Assistance for
[[Page 34271]]
Unemployed Workers and Struggling Families Act, Public Law (Pub. L.)
111-5; Section 502 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010, Public Law 111-312; 26
U.S.C. 3304(a)(11) note; 20 CFR 615.12; Unemployment Insurance Program
Letter (UIPL) No. 45-92; UIPL No. 4-10, Change 6.
3. Background. EB is payable in a state only during an EB period in
the state, that is, a period of unusually high unemployment. Section
203, EUCA, provides methods for determining whether a state's current
unemployment situation qualifies as an EB period. EB periods are
determined by ``on'' and ``off'' indicators (commonly referred to as
triggers) in the state. Section 203(d), EUCA, provides for an ``on''
indicator based on the insured unemployment rate (IUR). The IUR is
calculated weekly by the states using administrative data on state
unemployment compensation claims filed and the total population of
employed individuals covered by unemployment insurance. States trigger
``on'' EB if the IUR for the most recent 13-week period equals or
exceeds 5 percent and equals or exceeds 120 percent of the average of
such rates for the corresponding 13-week period ending in each of the
preceding two calendar years. The calculation of the relationship
between the current rate and prior year's rates is commonly referred to
as the ``look-back.''
The Unemployment Compensation Amendments of 1992, Pub. L. 102-318,
added Section 203(f), EUCA, to provide for an optional alternative
indicator that states may use to trigger ``on'' EB based on the TUR.
That indicator requires that, for the most recent three months for
which data for all states is published, the average TUR in the state
(seasonally adjusted) for the most recent three-month period equals or
exceeds 6.5 percent and the average TUR in the state (seasonally
adjusted) equals or exceeds 110 percent of the average TUR for either
or both of the corresponding three-month periods in the two preceding
calendar years (look-back). The 1992 amendments also provided for a
calculation of a ``high unemployment period'' when the TUR in a state
equals or exceeds 8 percent and meets the 110 percent look-back
described above, permitting the payment of additional weeks of EB.
Section 203(f)(3), EUCA, provides that ``determinations of the rate of
total unemployment in any state for any period * * * shall be made by
the Secretary.'' An EB period ends when the state no longer meets any
of the ``on'' triggers provided for in state law.
Regulations at 20 CFR 615 implement the provisions of EUCA relating
to the IUR indicators, including how they will be calculated. The
regulation, at 20 CFR 615.12, explains the IUR triggers and how the
rates are calculated. The regulation does not address the TUR
indicator. The Department is issuing this guidance to describe how the
TUR indicators are calculated for purposes of determining whether a
state meets the 110 percent look-back requirement. The Department plans
to promulgate regulations about this methodology in the near future.
In the absence of explicit guidance and regulation, the Department
previously adapted a portion of the existing guidance for the IUR look-
back indicator as a basis for calculating the TUR look-back indicator
as well. Specifically, in computing the look-back percentage for the
TUR trigger the procedure for determining the number of significant
digits from the resulting fraction followed 20 CFR 615.12(c)(3).
The TUR trigger is calculated using unemployment rates determined
by the Bureau of Labor Statistics. These rates are determined using
sampled data and therefore have error around them. In contrast, IUR
triggers are calculated from administrative data and thus represent the
full universe. Because of these differences in the calculation of the
insured and total unemployment rates, the Department has determined
that an appropriate methodology for calculating the look-back on the
TUR indicator is to switch from truncation at the fourth decimal place
as used for the IUR to rounding at the second decimal place.
The Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 permitted states to amend state law in order to
make determinations of whether there is an ``on'' or ``off'' indicator
by comparing current unemployment rates to the unemployment rates for
the corresponding period in the three preceding years. Authority to use
this three-year look-back applies only for weeks of unemployment
beginning after December 17, 2010, and ending on or before December 31,
2011. The Department will also use the methodology described below in
determining whether a state meets the three-year TUR look-back criteria
for those states that chose to amend their law to take advantage of
this temporary authority.
4. Methodology. The Department will now use the following method of
computing the current rate as a percentage of the comparable rate in
prior years (look-back) for the TUR indicator: On a monthly basis, the
three month average, seasonally adjusted rate of total unemployment is
divided by the same measure for the corresponding three months in each
of the applicable prior years, that is, either a two- or three-year
look-back, as specified in state law. The resultant decimal fraction is
then rounded to the hundredths place (the second digit to the right of
the decimal place). The resulting number is then multiplied by 100 and
reported as an integer and compared to the statutory threshold to
determine the state's trigger status.
5. Effective date of implementation. In order to give full effect
to this methodology, and to ensure that all unemployed individuals who
are eligible to receive EB are paid in a timely manner, the Department
is implementing the methodology described in Section 4 of this guidance
retroactive to April 16, 2011.
6. Action requested. Administrators are to provide this information
to the appropriate staff.
7. Inquiries. Please direct inquiries to the appropriate Regional
Office.
Dated: June 6, 2011.
Jane Oates,
Assistant Secretary, Employment and Training Administration.
[FR Doc. 2011-14478 Filed 6-10-11; 8:45 am]
BILLING CODE 4510-FN-P
