UNEMPLOYMENT COMPENSATION FOR FEDERAL EMPLOYEES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP06M00974R000100190002-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: January 4, 2017
• Document Release Date: August 27, 2013
• Sequence Number: 2
• Publication Date: April 30, 1981
• Content Type: MEMO

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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
BULLETIN NO. 81-18 April 30, 1981
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Unemployment Compensation for Federal Employees
I. Purpose. This Bulletin provides instructions for the
treatment of agency costs incurred for unemployment
compensation payments to former Federal employees.
2. Authority and background. The Omnibus Reconciliation Act
of 1980 (Public Law 96-499) requires that all unemployment
benefits paid to former Federal employees, based on Federal
service performed after December 31, 1980, be reimbursed to
the Federal employees compensation account of the
unemployment trust fund by the various Federal agencies.
This provision was enacted with the express purpose of
reducing outlays. (See Attachment A.)
Executive Branch departments and establishments have been
provided guidance by the Department of Labor on the basic
procedures that will be followed and on the duties and
responsibilities of Federal employers. (See Attachments B
and C.)
3. Policy.
a. Absorption of costs. Agencies will fully absorb all
costs of unemployment compensation for Federal employees
resulting from P.L. 96-499, by reducing other operating
costs. Requests for supplementals or budget amendments to
cover these costs will not be considered. Increases in
estimates for the 1983 Budget to cover these costs will not
be allowed.
b. Object classification. Obligations incurred by
agencies for unemployment compensation payments to the
unemployment trust fund (Federal employees compensation
account) will be classified under object class 13, Benefits
for former personnel. Obligations incurred by the Department
of Labor for payments to the States from the Unemployment
trust fund (Federal employees compensation account) will be
classified under object class 42, Insurance claims and
indemnities.
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4. Information contact. .For turtMer tectnical assistance
on implementation of the provIsions plr-the mem lam, contact ?
the Department of tabor representative as specified im the
attachments.
5. Sunset date. This Bulletin will expire :upon the
establishment of z system to assure that the requied
payments are made in a timely -manner.
David A. StocRman
Director
At
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PUBLIC LAW 96-499 MIL 17651; December 5, 1980
OBENIBUS RECONCILIATION ACT OF 1980
For Legssiotive History" of Act, sap. 958o
AN Art to previa* for reeenelllation pureuent to section 3 If the Finn Censor-
met Resolution en the &Wee* ler The lineal year teat.
ua.1 enciegetif, the SAoseriaz enate and Hoesausiesbot4Representatives of the
TITLE I-SHORT TITLE AND DECLARATION
OF PURPOSE
SEM /MA
&crime 101. This Act may be cited as the "Omnibus Reconciliation
Act of 1980".
FUROR
Bac. 102. It is the purpose of this Act to implement the recommen-
dations which were made by specified committees of the House of
Representatives and the Senate pursuant to directions contained in
section 3 of the First Concurrent Resolution on the Budget for the
fiscal year 1981 (H. Con. Res. 307, 96th Congress), and pursuant to the
reconciliation requirements which were imposed by such concurrent
resolution as provided in section 310 of the Congressional Budget Act
of 1974.
"TED/CLAL 13171.0T1123 COICIINSATION ACCOUNT
"Sac. 909. There is hereby established in the Unemployment Trust
Fund a Federal Employees Compensation Account which shall be
used for the purposes specified in section 8509 of title 5, United States
Code. For the purposes provided for in section 904(e), such account
shall be maintained as a separate book account".
(b) Subchapter I of chapter 85, title 5. United States Code, is
amended by adding at the end thereof the following new section:
118509. Federal Employees Compensation Account
"(a) The Federal Employees Compensation Account (as established
by section 909 of the Social Security Act, and hereafter in this section
referred to as the 'Amount') in the Unemployment Trust Fund (as
established by section 904 of such Act) shall consist of?
"(1) funds appropriated to or transferred thereto, and
12) amounts deposited therein pursuant to subsection (c).
"(b) Moneys in the Account shall be available only for the purpose
of making payments to States pursuant to agreements entered into
under. this subchapter and making payments of compensation under
this subchapter in States which ski not have in effect such an
agreement.
"(cX1) Each employing agency shall deposit into the Account
amounts equal to the expenditures incurred under this subchapter on
account of Federal service performed by employees and former
employees of that agency.
"(2) Deposita required by paragraph (1) shall be made during each
calendar quarter and the amount of the deposit to be made by any
employing agency during any quarter shall be based on a determina-
tion by the Secretary of Labor as to the amounts of payments, made
prior to such quarter from the Account based on Federal service
performed by employees of such agency after December 31,1980, with
respect to which deposit has not previously been made. The amount
to be deposited by any employing agency during any calendar quarter
shall be adjusted to take account of any overpayment or underpay-
ment of deposit during any previous quarter for which adjustment
has not already been made.
"(d) The Secretary of Labor shall certify to the Secretary of the
Treasury the amount of the deposit which each employing agency is
required to make to the Account during any calendar quarter, and
the Secretary of the Treasury shall notify the Secretary of Labor as to
Attachment A
Bulletin No. 81-18.
Omnibus
ROCOOCiltation
Act a 19140
31 USC 1331.
5
the date and amount of any deposit made to such Account by any
such
"(e) Priorthe beginning of each fiscal year (commencing with ti
fiscal year which begins October 1, 1981) the Secretary of Labor shaL
estimate-
11) the amount of expenditures which will be made from the
Account during such year, and
12) the amount of funds which will be available during such
year for the making of such expenditures,
and if, on the basis of such estimate, he determines that the amount
described in paragraph (2) is in excess of the amount necessary?
"(3) to meet the expenditures described in paragraph (1), and
14) to provide a reasonable contingency fund so as to assure
that there will, during all times in such year, be sufficient sums
available in the Account to meet the expenditures described io
paragraph (1),
he shall certify the amount of such excess to the Secretary of the
Treasury and the Secretary of the Treasury shall transfer, from the
Account to the general fund of the Treasury, an amount equal to such
MON&
"(f) The Secretary of Labor is authorized to establish such rules and
regulations as may be necemary or appropriate to carry out the
provisions of this section.
"(g) Any funds appropriated after the establishment of the
Amount for the making of payments for which expenditures are
authorized to be initee from nicrleys in the Account, shall be made to
the Account and there are hereby authorized to be appropriated to
the Aunt, from time to time, such sums as may be necessary to
assure that there will, at all times, be sufficient sums available in the
Account to meet the expenditures authorized to be made from
moneys tharein.".
(c) All funds appevprizttd which are available for the making of
payments to States after December 31, 1980, pursuant to agreements
entered into under subchapter I of chapter 85 of title 5, United States
Code, or for the making?of payments after such date of coonoensation
under such subchapter in States which do not have in effect such an
agreement, shall be tramsferred on January 1, 1981, to the Federal
Employees Compensation Account established by section 909 of the
Social Security Act. On and after such date, all payments described in
the preceding sentence shall be made from such Amount as provided
by section 8509 of title 5, United States Code.
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U.S. Department of Labor
Employment and Training Administration
601 D Street, NM.
Washington, D.C. 20213
Attachment B
Bulletin No. 81-18
Reply to the Attention of: -TUMF
February 19, 1981
MEMORANDUM FOR: ALL FEDERAL AGENCY UCF LIAISON OFFICERS
FROM: BERT LEWIS
Administrator/JJ A-
Unemployment surance Service
SUBJECT:
Public Law 96-499-Unemployment Compensation
for Federal Employees (UCFE) Benefit Costs
Payable by Federal Employing Agency
Public Law 96-499, the Omnibus Reconciliation Act enacted
December 5, 1980, amended the UCFE law (5 USC 8501, et seq.) and
requires each Federal agency to pay the costs of regular and
extended UCFE benefits paid to its employees by State employment
security'agencies (SESAs) for Federal service performed after
December 31, 1980. Funds for paying these benefits will be de-
posited quarterly by Federal agencies into an account in the
U.S. Treasury (the Unemployment Trust Fund) entitled the "Federal
Employees Compensation Account" (FECA).
The head of each Federal Department, independent agency,
commission, etc., has been notified by a separate memorandum, as
to his/her responsibilities in implementing P.L. 96-499.
Since each Federal agency will now have to pay the cost of any
UCFE benefits paid to its employees, including former employees,
it is important that each Federal agency increase its efforts
to safeguard the expenditure of Federal funds. Following are
several measures that will assist in controlling UCFE benefit
costs.
1. Ensure that Standard Form 8, Notice to Federal Employee
About Unemployment Insurance, is issued on or before the last
day of work, as required by 20 CFR 609.5, to each employee:
separated for any reason, transferred to the jurisdiction of a
different payroll office; or one who is in non-pay status for
7 days or more. (See Pages 19 through 24, UCFE Instructions
for Federal Anencies)
7
Federal agencies should make certain that the SF-8 reflects the
complete parent agency name, component, and current payroll
office address where the employee's payroll records are main-
tained. As a part of the payroll address, enter the Federal
agency's identifying code number (see list attached) next to
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the parent agency name. The same code number should be entered
also in Section II, Item 4(name of parent Federal agency), of
any ES-931'that the payroll office.completes and returns to the
requesting State agency. The code number will ensure that the
proper Federal employing agency is charged for UCFE benefits
paid to its employees.
2: Ensure that all Forms ES-931, UCFE Request For Wage And
Separation Information, are completed and returned within 4
work days after receipt from a ,State agency, as instructed by
20 CFR 609.6. Each Federal agency is required by regulation to
maintain a,mail control concerning each Form ES-931 with respect
to date of,receipt and date of completion and return. The im-
portance of the timely completion of Forms ES-931 by payroll
offices should be stressed, since a State agency may pay UCFE
benefits on the basis of a claimant's statement, if the
Form ES-931 is not received within 12 days after such form was
sent to the Federal agency's payroll office, as provided by 20
CFR 609.19. The total charge for such UCFE payments based on
the claimant's statement will, in such an instance, be charged
to the Federal agency that was delinquent in not returning the,
Form ES-931 within 12 days. Thus, there is a paramount.need for
the timely completion of Forms ES-931 by a Federal employing
agency's payroll office.
3. Ensure that Forms ES-931 being returned to the requesting
State agency provide complete, accurate, wage and separation
data.
In this regard, ensure that the "Reason for Separation" and
"Remarks" sections on Standard Forms 50, Notification of
Personnel Action, (or equivalent document) provide all specific
facts related to the separation action required by Federal
Personnel Manual Supplement 296-31.
A properly prepared SF-50 will ensure that all relevant
separation facts will be posted to Forms ES-93I by the Federal
agency's payroll office which in turn will ensure that. the
State agency's eligibility decision to pay UCFE benefits will
be a proper one since it will have been based on relevant wase
and separation facts.
4. Ensure that all notices received by a Federal agency payroll
office from State agencies, i.e., notices of determination and
appeal, are referred promptly to appropriate staff within the
Federal agency, and that an appeal action is initiated to pre-
vent the payment of benefits to a claimant where the facts
available to the Federal agency are believed to warrant' such
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action. This is in accordance with 20 CFR 609.11 Which provides
that if a Federal agency believes that a State agency's deter-
mination to award or deny unemployment compensation is incorrect,
it should appeal such determination. Federal employing agency
representatives should attend appeals hearings and provide
testimony, as needed to safeguard Federal funds. (See Page 63,
UCFE Instructions for Federal Agencies)
Currently, the handbook, UCFE Instructions For Federal Agencies,
is in the process of being revised and, when completed, will be
made available to Federal agencies. Technical assistance and
questions with regard to these instructions may be directed to
Charles W. Reynolds or Millie Rosen Enten on 8-376-6222.
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Attachment C-
Bulletin No. 81-18
U.S. DEPARTMENT OF LABOR
SECRETARY OF LABOR
WVXWICIT'ir41S5f.
MEMORANDUM FOR: HEADS OF EXECUTIVE DEPARTMENTS AND
ESTABLISHMENTS
FROM: Secretary of
SUBJECT:'
Public Law 96-4 Omnibu
Reconciliation A t of 1980
7 1. Purpose. To inform Heads of departments and
agencies of the provisions of new legislation enacted
by the 96th Congress and of the duties and responsi-
bilities of the Secretary of Labor and the Heads of
departments and agencies.
2. Background. Public Law 96-499, Section 1023
(Attachment A) establishes a Federal Employees
Compensation Account (FEC Account) in the Unemployment
Trust Fund (UTF) which shall be used for the purpose
of providing unemployment benefits based on Federal
service performed by civilian employees and former
civilian employees of Federal agencies. Currently,
the budget of the Department of Labor (DOL) contains
the Federal Unemployment Benefits and Allowances
(FUBA) appropriation which funds State employment
security agencies (SESA's) for the payment of
unemployment benefits on the basis of Federal civilian
service and Federal wages. Under current law, Federal
employees may receive unemployment compensation if
they meet the qualifying requirements of the paying
State law. The new law requires each Federal agency
to reimburse the new FEC Account from its appropria-
tions for the benefit costs attributable to its
employees for services performed after December 31,
1980.
3. Procedures. In order to implement the
requirements of the law, there must be certain
preliminary actions taken to insure an orderly and
efficient transition to the new procedures.
Concurrently, the Secretary of Labor will establish,
such rules and regulations as may be necessary or
appropriate to carry out the provisions of 5 USC 8509.
The following information is being provided to Federal
departments and agencies regarding the implementation
of P.L. 96-499.
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a. On January 1, 1981, DOL transferred funds
from the FUBA appropriation to the FEC Account in the
UTF. States will be able to withdraw funds from the
FEC Account in amounts necessary to pay unemployment
compensation for Federal employees (UCFE) after
December 31, 1980. However, Federal departments and
agencies will be required to reimburse the FEC Account
only for unemployment benefits based on Federal
civilian service performed by employees of such
departments or agencies after December 31, 1980.
b. A three-digit numerical code has been
assigned which identifies each Federal agency. (See
Attachment B).
c. States will identify all benefit payments, by
Federal agency, that are based on Federal civilian
service performed after December 31, 1980. States
will submit certified reports to DOL each quarter
showing the amount of payments chargeable to each
Federal department or agency.
d. The Secretary of Labor will certify to the
Secretary of the Treasury and the Federal departments
and agencies the amount of the deposit which each
Federal department or agency is required to make to
the FEC Account for any calendar quarter; and the
Secretary of the Treasury will notify the Secretary of
Labor as to the date and amount of any deposits made
to the FEC Account by each department or agency.
e. The first certified billing document to a
Federal department or agency will be made by DOL
during the quarter beginning April 1 1981.
f. The Federal department or agency is required
to reimburse the FEC Account in the U.S. Treasury in
the total amounts reflected on the certified billing
documents. Adjustments to a quarterly billing will be
reflected on subsequent billings.
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4. Summary. The basic procedures described above are
provided as information to department and agency
Heads. The procedures will enable each department and
agency Head to Plan for the reimbursement to the FEC
Account for unemployment benefit payments made
to former and/or present Federal civilian employees.
Moredetailed instructions pertaining to reimbursing
the FEC Account will be provided to you at 0 later
date.
In order to safeguard Federal funds and insure that
only eligible claimants are being paid, instructions
concerning the need for Federal departments and
agencies to monitor UCFE determinations and benefit
payments are being sent directly to each UCFE liaison
officer designated in accordance with 20 CFR 609.12.
Technical assistance and guidance will be available to
assist your staff in this effort.
5. Inquiries. For information pertaining to this
memorandum, contact the Employment and Training
Administration, Unemployment Insurance Service,
telephone [phone].
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