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Sequestration will reduce emergency unemployment compensation

Federal sequestration will prompt a reduction in Federal Emergency Unemployment Compensation (EUC) for Utahns beginning in late April.

The Utah Department of Workforce Services plans to implement the 12.8 percent reduction on April 28, 2013, provided the computer system that administers the program can be updated by that time.

This reduction applies to all current and future claimants eligible for EUC on or after the target date of April 28. This reduction will not impact regular state unemployment insurance benefit amounts.

As part of the Budget Control Act of 2011, also known as sequestration, the U.S. Department of Labor (USDOL) directed states to begin reducing EUC claimant's weekly and maximum benefit amounts on or after March 31, 2013.

Though states are allowed to choose the date of implementation, the percentage will increase the longer it takes for states to implement the reduction.

The Utah Department of Workforce Services administers the unemployment insurance program in Utah. Two weeks before implementation, the department will send out notices to about 4,000 current unemployed workers informing them that their weekly and maximum EUC benefits will be reduced.

Workforce Services will continue to provide the claimants with re-employment, training, and educational opportunities to help them find employment.

The EUC program is currently authorized to pay up to an additional 14 weeks of emergency federal benefits on top of the original 26 weeks of regular state unemployment benefits. This makes a total of up to 40 weeks of benefits. This federal program is scheduled to end on December 28, 2013.

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