Transcript The Trade and Globalization Adjustment Assistance Act of

ETA
The Trade and Globalization Adjustment
Assistance Act of 2009 —
What We Can Expect and When
TIMOTHY J. THEBERGE
Federal Project Officer
Employment & Training Administration, Region 1
U.S. Department of Labor
[email protected]
617-788-0139
CAROL A. ELWELL
Workforce Program Specialist III
NYS Department of Labor
Division of Employment and Workforce Solutions
ETA
What is the Trade and Globalization
Adjustment Assistance Act of 2009
• American Recovery and Reinvestment
Act of 2009
– aka: Stimulus Bill or Recovery Act
– Public Law 111-5
• Trade and Globalization Adjustment
Assistance Act of 2009
– Division B – Subtitle I – Section 1800
• Trade Act of 1974, as amended
• Title 19 USC Chapter 12
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What Hasn’t Changed . . .
TAA for Workers will continue to help
workers who have lost their jobs as a result
of foreign trade to quickly rejoin the
workforce by providing them with the means
to attain competitive and marketable skills
for today’s increasingly competitive work
environment.
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What Else Hasn’t Changed
TAA continues to be a TRAINING program.
One-Stop Center must work with Trade-affected
workers to assist them in developing TAAapprovable training programs.
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Major Changes
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Expanded Eligibility
Training Flexibility
Deadlines, Waivers and Related Rules
TRA
Health Coverage Tax Credit
Alternative Trade Adjustment Assistance
Case Management Costs
Job Search / Relocation
Reporting Changes
Community College / Sector grants
Structural changes in ETA
TAA for Communities
TAA for Firms
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Expanded Eligibility
• Service workers & public agencies
• Relocation to any foreign nation
• Secondary workers covered even if
upstream firm not in U.S.
• Component producing worker groups
• Worker groups covered by various US
ITC decisions
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Training
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Increases training cap to $575m
Allows for part-time training in some circumstances
Allows time for pre-requisites (+26 weeks TRA)
Allows for pre-layoff training
– Incumbent “threatened” workers eligible
• Prohibits limiting training options to ETPL
• Enhances OJT – but no longer “preferred”
– Requires “benchmarks”;
– Eases payment rules;
• Allows for public / private funding
– Grants, scholarships, employer-funding
– Receipt of a Pell Grant must not be factored into approval
of training
– 20 CFR 617 still in effect on funds personal to the worker
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Waivers
• No Major Changes to:
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Recall
Retirement
Health
Enrollment Not Available
Training Not Available
• Marketable Skills
– Adds possession of postgraduate degree or certification as
grounds for issuance. Waiver of longer than 6 months is
possible.
• Waiver Review
– The initial (or 1st) waiver is not required until 3 months,
with monthly reviews every 30 days thereafter.
– Waiver reviews are no longer required for “Near
Retirement” waivers from training.
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TRA
• Removes the 60 day waiting period for 1st
payment
• Allows participants to choose between UI
and TRA
– Relief from lower benefit due to part-time or
short-term employment
• Adds an additional 26 weeks to additional
TRA
– Provides a 13 week buffer on receipt of TRA
• Removes 210-day deadline for bonafide
application for training
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Deadlines
• 26 weeks from separation or
certification
– 45-day extenuating circumstance
– State UI “good cause” provisions
allowable
• Appeal actions preserve deadlines
• Active duty status preserves rights
ETA Health Coverage Tax Credit
• Increases credit to 80%
• Requires additional information on
qualified plans
• Effective for April 2009 invoices
• Retroactive Payments
– For 2009 coverage
– Begins in August 2009
• Eligibility retained during breaks in
training
ETA HCTC – Coverage Expansion
• Coverage expanded
– Beginning in January 2010, qualified
family members may continue receiving
the HCTC for up to 24 months (but not
beyond December 31, 2010) after the
primary eligible individual experiences the
following life events:
• Enrollment in Medicare
• Divorce
• Death
ETA Job Search and Relocation
• Job Search
– Raises maximum benefit to $1,500
– 100% of allowable costs
– Subject to Federal Travel Regulations
• Relocation
– Raises lump sum maximum to $1,500
– 100% of allowable costs
– Subject to Federal Travel Regulations
ETA ATAA: Reemployment TAA
• Now called: Reemployment TAA
• Allows for receipt of RTAA after TRA
– Subtracts weeks of TRA already paid
• Allows for part-time training and parttime employment
– Without TRA
• Wage limit increased to $55,000
• Benefit limit increased to $12,000
• Extends reemployment deadline
beyond 26 weeks
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Reporting Changes
• Change in Entered Employment, Retention
and Earnings
– No longer based on TEGL 17-05
• Additional fields required
– Duration of benefits, training type (distance
learning, part-time)
• Emphasis on sector of post-program
employment
• Likely to resemble EMILE format
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When . . .
Effective Date: May 18, 2009
All petitions filed on or after May 18, 2009 will be
covered under the new Trade and Globalization
Adjustment Act of 2009. Petitions will numbered
starting with 70,000.
All petitions that were filed before May 18, 2009 will
be covered by the old Trade Adjustment Assistance
Program. Petitions will be numbered between
40,000 and 69,999.
All petitions numbered below 40,000 are subject to
the program prior to the 2002 changes.
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Side-by-Side - TRA
2002 TAA Program
Trade Readjustment
Assistance (TRA)
•Up to 104 weeks of
cash payments for
workers enrolled in fulltime training
•Up to 130 weeks of
cash payments if
worker was also
enrolled in remedial
training.
New TAA Program
Trade Readjustment
Assistance (TRA)
•Up to 130 weeks of
cash payments for
workers enrolled in fulltime training
•Up to 156 weeks of
cash payments if the
worker was also
enrolled in remedial
training.
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Side-by-Side – Deadlines
2002 TAA Program
New TAA Program
Training Enrollment
Deadlines:
Workers must be
enrolled in training 8
weeks after
certification or 16
weeks after layoff,
whichever is later, in
order to receive TRA.
Training Enrollment
Deadlines:
Worker must be
enrolled in training 26
weeks after
certification or layoff,
whichever is later, in
order to receive TRA.
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Side-by-Side - Relocation
2002 TAA Program
New TAA Program
Relocation Allowances:
•90% of costs, up to
the statutory limit for
Federal Employees
•Provides an additional
lump sum payment of
up to $1,250.
Relocation Allowances:
•100% of costs, up to
statutory limit for
Federal Employees
•Provides an additional
lump sum payment of
up to $1,500.
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Side-by-Side – Job Search
2002 TAA Program
New TAA Program
Job Search
Allowances:
90% of allowable
costs, up to $1,250.
Job Search
Allowances:
100% of allowable
costs, up to $1,500.
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Side-by-Side Comparison –
Continued
2002 TAA Program
New TAA Program
Training Services:
•Training approved on a
full-time basis
•Certified workers may not
begin approved training
until they have been totally
or partially separated.
•No out-of-pocket
expenses are allowed.
•Training facility and
training course must be on
the ETPL (state policy).
Training Services:
•Training approved on a fulltime or part-time basis (fulltime training is required for
TRA eligibility).
•Certified workers may begin
approved training when
threatened with separation.
•Public and private funds can
be used.
•Training no longer limited to
EPTL.
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Side-by-Side Comparison Continued
2002 TAA Program
New TAA Program
Health Coverage Tax Credit
(HCTC):
•Prior to April 2009, a tax
credit covering up to 65% of
an eligible participant’s
monthly qualifying health
insurance premium.
Health Coverage Tax
Credit (HCTC):
Beginning April 2009, a
tax credit covering 80%
of an eligible participant’s
monthly qualifying health
insurance premium.
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Key Message
As stated previously, it is important to remember
that TAA is a TRAINING program. New York
State’s TAA training enrollment participation rate is
approximately 30%. However, NYS’ TAPR reports
continue to show that trade-affected workers who
receive training under the TAA program have
higher entered employment rates, longer
employment retention rates and higher post
average earnings than those who do not receive
training.
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Once More on Training…
Given the proven advantages to participation
in training, especially in today’s economic
climate, we need to emphasize training by
encouraging trade-affected workers to take
advantage of the unique training opportunity
afforded them through the TAA program.
ETA
ETA Level Changes
Creates a new Office of Trade Adjustment Assistance
with an Administrator.
Annual funding level will increase to $575 million for TAA
training programs through the end of 2010 (this is a
160% increase over the previous cap of $220 million).
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Case Management Costs
• Establishes an entitlement to case
management and related services
• Base $350k per state for case
management – state option
• Requires use of 1/3 of “admin” funds
for case management
– Allows for related costs: LMI,
assessment, MIS upgrades
ETA Community College Grants
• NOT CURRENTLY APPROPRIATED
• $40m annually
• To community colleges and other
institutions that partner with
employers, unions, WFS to improve
training opportunities
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TAA for Communities
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NOT CURRENTLY APPROPRIATED
Commerce / EDA
$150m / year
Up to $5m per community
Inter-agency working group
– Commerce, DOL, USDA
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TAA for Firms
• Commerce / EDA
• Expanded to include service sector
and agricultural firms
• $50m / year
• www.taacenters.org
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Online Resources
• ETA – TAA for Workers
– www.doleta.gov/tradeact
• EDA – TAA for Firms
– www.taacenters.org/
• IRS - HCTC
– www.irs.gov Keyword: HCTC
• EBSA - COBRA
– www.dol.gov/ebsa
• USDA – TAA for Farmers
– http://www.fas.usda.gov/ITP/TAA/taa.asp
What’s Next?
ETA
• Training
– June 15-17, 2009
– Baltimore, Maryland
• Reporting Instructions
– Final: August 17, 2009
• NPRM - Regulations
– Final: February 2010
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Questions?!?!?!?!?!?
It’s time for Questions . . .
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Additional Questions:
Questions regarding the new TAA program changes
should be emailed to the TAA mailbox for response.
The TAA mailbox address is:
•[email protected] – for those outside the
NYS Department of Labor’s network
•labor.sm.wdtd.taa – for those inside the NYS
Department of Labor’s network