The Implementation and the Impact of the Trade Adjustment Assistance
Extension Act of 2011January 27, 2012 1-2pm
Lindsay Webb, TAA Coordinator, National Employment Law Project
Ragini Kapadia, Senior Economic Analyst, Working for America Institute
Moderated by Lynn Minick, National Employment Law Projectwith Presentations by the IRS Health Coverage Tax Credit Program and the Minnesota Department of Employment and Economic Development
Ragini Kapadia, Senior Economic Analyst,AFL-CIO Working for America Institute
Findings and Resources on the Trade Adjustment Assistance
Act
W W W.TA A H E L P S .O R G
The Working for America Institute
• The AFL-CIO Working for America Institute (WAI) is a union-sponsored, nonprofit organization dedicated to creating good jobs and building strong communities.
• WAI has made significant progress in articulating a vision of a high road economy—an economy that competes in today’s global marketplace on the basis of innovation, quality and skill rather than on low wages and a lack of benefits.
US DOL Technical Assistance Grant
• 8 State Partners: CA, IN, MA, MI, MN, NY, OH, PA
• National Partner: NELP• Technical Assistance to Unions, Employers,
Union-Sponsored Workforce Development and Dislocated Workers Programs
Challenges
• Workers eligible for TAA do not take full advantage of TAA retraining and reemployment services
• Lack of awareness and information on TAA that is accessible and relevant to trade affected workers
• Uncooperative employers who hold up and delay the TAA petition process
• Consistent guidelines and capacity for state outreach on TAA
• Disconnect between local unions and resources on TAA
Best Practices
• Enrolling trade affected workers at the earliest date possible: Case Studies in Pennsylvania
• Coordination and integration of services involving large regions and multiple jurisdictions: the NUMMI Case Study in California
• Utilization of social networks and multimedia to increase awareness on TAA
• Partnerships between employers, unions, and state workforce agencies.
The Trade Adjustment Assistance Extension Act of
2011
Lindsay Webb, TAA CoordinatorNational Employment Law Project
Trade Adjustment Assistance
• NELP promotes TAA as the best existing dislocated worker program– Only TAA provides income support AND training for
dislocated workers– TAA includes limited health care option—HCTC
• With 2011 reauthorization, substantial TAA improvements from 2009 were retained: – Eligibility for service workers as well as manufacturing
workers– Incumbent worker training for “at risk employment.” – Offshoring coverage for shifts to all countries– Retains higher level of spending ($575 M)
The Law that governs TAA
• Most recent TAAEA was signed into law by President Obama on Oct. 21, 2011
• But it is still referred to as The Trade Act of 1974 (19 U.S.C. § 2271 et seq.) as amended
• This Act Creates 3 distinct program (2002, 2009, 2011)• Each program has a different sets of rules:
– 20 CFR 617;– 20 CFR 618– TEGL 11-02 (2002)– TEGL 22-08 (2009)– TEGL 10-11 (2011)
Petition Number Grid
TAA Law Petition Number Applicable Date Election Option
2002 Amendments Below TA-W-70,000 Before May 18, 2009 NO
2009 Recovery Act TA-W-70,000 to TA-W-79,999
May 18, 2009 to Feb. 14, 2011 NO
2002 “Gap” Program TA-W-80,000 to TA-W-80,999
Feb. 14, 2011 to Oct. 21, 2011 YES
2011 Amendments TA-W-81,000 After Oct. 21, 2011 NO
Worker Election
• Petitions filed between Feb. 14, 2011 and Oct. 21, 2011 (so-called gap period) are impacted. – Those petitions (80,000 – 80,999) still under investigation
will be considered under 2011 rules. – Those petitions denied during this period will be
reconsidered. • And, workers certified under one of these petitions
who sought TAA services will have an election between the 2002 Act and the 2011 Act benefits. – The election period begins Dec. 20, 2011 and ends March
19, 2012.
Certification Pointers
• There are two ways to be certified as a primary certification: – Shift in production or increase in import
• Shifts in Production – Must show jobs transferred to any country. – Prove shift in production through employer admission or
other evidence provided by petitioner
• Increase in Imports – Must be like or directly competitive – “contributed importantly” to layoffs
» important cause, but not necessarily more important than any other cause
Certification Pointers
• However, firms for can be certified as a secondary certification if: – They are a direct supplier of component parts to
certified primary firm that accounted for 20% of production or sales OR loss of business with primary firm “contributed importantly” to layoffs, OR
– If they are a Downstream producer providing additional, value added production directly for primary firm
TAA Eligibility
Two step TAA eligibility process• Group Eligibility (by workplace)
– Petition for eligibility with U.S. Labor Department (3 workers, union, employer, state or local workforce agency, governor)
• Individual Eligibility (by worker)– Individual application and processing for certified
workers, often after group orientation
Impact Date
• Under 2002 and 2009 the impact date was generally a year from the date of certification.
• BUT, under 2011, the impact date is extended for all certifications filed between October 21, 2011 and the January 19, 2012.– The new impact date for these certifications is
February 13, 2010. • So, anyone laid off from that date to 26 weeks after
certification will be covered
Weeks of Income Support Vary by Act
Trade Adjustment Assistance Act 2002 2009 2011
Regular State Benefits 26 26 26
Basic Trade Readjustment Allowance (TRA) 26 26 26
Additional Trade Readjustment Allowance (TRA) 52 78 65
Remedial Trade Readjustment Allowance (TRA) 26 26 ---
Completion Trade Readjustment Allowance (TRA) --- --- 13
Maximum Number of Weeks 130 156 130
Note: Trade Adjustment Assistance participants must exhaust regular federal and state unemployment insurance benefits before starting TRA. The weeks of regular federal and state unemployment insurance benefits count toward the maximum number of weeks available. For example, in recent years, unemployed workers may have qualified for up to 99 weeks of federal and state unemployment benefits. Under the 2011 Act, a worker who received 99 weeks of regular benefits would, at most, be eligible for 31 weeks of TRA for a total of 130 weeks. [1] Regular State Benefits: Most states offer 26 weeks of regular state benefits.[2] Basic TRA: Income support available to all TAA-certified workers, even workers on a training waiver. However, the 2011 Amendments reduce reasons for a waiver.[3] Additional TRA: Income support available to workers in approved training.[4] Remedial TRA: Income support for workers in training who requires remedial training.[5] Completion TRA: Income support for workers in active training and meeting performance benchmarks.
2002 TRA Overview
26 weeksUnemploymen
t
26 weeksBasic TRA
52 weeksAdditional TRA
26 weeksRemedial TRA
+ +
+
= 104 weeks
= 130 weeks
TRA Overview
26 weeksUnemployme
nt
Benefits
104 weeks
TRA
13 WeeksCompletion of Degree or Credential
+ = 130 weeks BUT LAST
Completion TRA• To receive Completion TRA,
– a worker must have exhausted Additional TRA, and – need completion TRA to finish a degree or industry-recognized
credential and – met and continue to meet the performance benchmarks
established in the approved training plan and – participate in training in each week he/she receives
Completion TRA• Training benchmarks are agreed to and initiated at the start of the
training plan and reviewed every 60 days.• Evaluation criteria:
– Satisfactory academic standing– On schedule to complete training according to training plan
Approval of TAA Training
Six Conditions for Approval of TAA Training• No suitable employment for the worker. • Worker would benefit from appropriate training. • Reasonable expectation of employment following
training. • Training is reasonably available to the worker. • Worker is qualified to obtain and complete the training,
including having adequate financial resources available to complete the training when income support is exhausted.
• The training is suitable and available at a reasonable cost.
Enrollment Deadlines
• Must be enrolled in training OR have a training waiver by the LATEST of– the end of the week after the week that is 26 weeks after
TAA certification OR– the end of the 26th week after the worker’s most recent
total separation from affected employment
• One 45 day extension for “extenuating circumstances”
• 210 Day Rule—Applies to Additional Tar• Equitable Tolling—TEGL-08-11
Training Waivers
Dropped after 2011 changes:• Worker will be recalled reasonably soon; or• The worker has marketable skills for suitable employment
and a reasonable expectation of employment in the foreseeable future; or
• The worker is within two years of eligibility for a pension or social security;
Remaining after 2011 changes:• The worker is unable to participate in or complete training
due to the health of the worker; or• Immediate enrollment is not available; or • No training program is available.
Job Search & Relocation Allowances
• Up to $1250 to cover up to 90% of travel and subsistence costs (2011 change)
• Must be pre-approved, no local employment available
• Not more than 365 days after layoff or certification, or 182 days after completion of training
• Pays up to 90% of moving costs and travel to accept employment outside normal commuting area
• Must be pre-approved, no local employment available
• Pays up to 90% of charges or maximum of $1250 (2011 change)
• Must apply within 425 days of layoff or certification, or 182 days of completion of training
No longer considered an entitlementSubject to state funding availability and preapproval
Reemployment TAA
• Must be 50 years or older and separated from TAA certified employment
• Worker accepts new work by end of 26th week after layoff or certification, whichever is later
• ATAA pays 50% of difference between the prior wage and the new wage up to a maximum of $10,000 over 2 years, whichever comes first.
• Annual wage must be less than $50,000• Electing RTAA no longer cuts off other TAA options,
including part time training• No separate certification required
Petitions TA-W-69,999 and below
Petitions TA-W-70,000 through TA-W-79,999
Petitions TA-W-80,000 to TA-W-80,999 for workers who begin receiving services before Dec. 20, 2011
Petitions TA-W-81,000 and above
2002 Law Benefits 2009 Law Benefits 2002 Law Benefits 2011 Law Benefits 2011 Law Benefits
Eligibility Manufacturing workers
Workers who have lost their jobs because their
company’s decline in production and/or sales
was due to increased imports or the
outsourcing of jobs to a country with which the
US has a Free Trade Agreement
Manufacturing workersService sector workersPublic sector workers
ITC workers (those who work for a firm that has been identified by the
International Trade Commission as in a
domestic industry that has been injured/is a
party to a market disruption)
Workers who have lost their jobs because their
company’s decline in production and/or sales
was due to increased imports or outsourcing
to ANY country
Manufacturing workers
Workers who have lost their jobs because their
company’s decline in production and/or sales
was due to increased imports or the
outsourcing of jobs to a country with which the
US has a Free Trade Agreement
Manufacturing workersService sector workers
ITC workers (those who work for a firm that has been identified by the International Trade Commission as in a domestic industry that has been injured/is a party to
a market disruption)Workers who have lost their jobs because their
company’s decline in production and/or sales was due to increased imports or outsourcing to ANY country
Trade Readjustment Allowance
Up to 104 weeks (enrolled in full-time
training) ORUp to 130 weeks
(enrolled in remedial training)
8/16 rule applies
Up to 130 weeks (enrolled in full-time
training) ORUp to 156 weeks
(enrolled in remedial training)
26-week rule applies
Up to 104 weeks (enrolled in full-time
training) ORUp to 130 weeks
(enrolled in remedial training)
8/16 rule applies
Up to 130 weeks available to workers enrolled in full-time training, the last 13 of which are only available if
needed for completion of a training program and training benchmarks are met.
26-week rule applies
Training Waivers 1. Worker will be recalled to work reasonably soon2. Worker has marketable skills for suitable employment and a reasonable expectation of employment in the foreseeable future3. Worker is within two years of eligibility for a pension or social security4. Worker is unable to participate in or complete training due to health condition5. No training program is available6. An enrollment date is not immediately available
1. Worker is unable to participate in or complete training due to a health condition2. No training program is available3. An enrollment date is not immediately available
Health Coverage Tax Credit 72.5% of qualifying health insurance premium costs
Petitions TA-W-69,999 and below
Petitions TA-W-70,000 through TA-W-79,999
Petitions TA-W-80,000 to TA-W-80,999 for workers who begin receiving services before Dec. 20, 2011
Petitions TA-W-81,000 and above
2002 Law Benefits 2009 Law Benefits 2002 Law Benefits 2011 Law Benefits 2011 Law Benefits
Job Search Allowance
Relocation Allowance
90% of allowable job search costs up to $1,250
90% of allowable relocation costs, plus additional lump sum
payment up to $1,250
100% of allowable job search costs up to $1,500
100% of allowable relocation costs, plus an
additional lump sum payment up to $1,500
90% of allowable job search costs up to $1,250
90% of allowable relocation costs, plus an
additional lump sum payment up to $1,250
Up to 90% of allowable job search costs, up to a maximum of $1,250, available at state discretionUp to 90% of allowable relocation costs, plus an additional lump sum payment of up to $1,250,
available at state discretion
Training Funding
Case Management Funding
$220 MillionCap Applies to Training
Funds OnlyAdditional 15% available
for administration. Additional funds are
available for job search & relocation allowances. No
funds are available for case management and employment services.
$575 MillionCap Applies to Training
Funds OnlyAdditional 15% available for administration, and case management and
employment services. At least 1/3 of these funds must be used for case
management and employment services.
States also receive $350,000/year for case
management and employment services.
Additional funds available for job search
and relocation allowances.
$220 MillionCap Applies to Training
Funds OnlyAdditional 15% available
for administration. Additional funds are
available for job search & relocation allowances. No
funds are available for case management and employment services.
$575 MillionCap Applies to training, job search & relocation allowances, case management and employment
services, and associated administration.• No more than 10% of the amount provided may be
spent for administration;• No less than 5% or the amount provided may be
spent for case management and employment services.
• DOL may recapture from the states funds remaining unobligated after two or three years and distribute such funds to states in need of funds.
Alternative Trade Adjustment Assistance (2002)/Reemployment Trade Adjustment Assistance (209/2011)
Requires separate group certification
Available to workers earning less than an
annual salary of $50,000Maximum total benefit
of up to $10,000Training benefit NOT
available
Does not require separate group
certificationAvailable to workers earning less than an
annual salary of $55,000Maximum total benefit
of up to $12,000Training benefit is also
available
Requires separate group certification
Available to workers earning less than an
annual salary of $50,000Maximum total benefit
of up to $10,000Training benefit NOT
available
Does not require separate group certificationAvailable to workers earning less than an annual salary
of $50,000Maximum total benefit of up to $10,000
Training benefit is also available
What Will We Cover?
• Minnesota’s approachto TAA
• 2011 Implementation activities and concerns
• Accomplishments and challenges
The Minnesota Model of TAA
• Absolute, 100 percent co-enrollment with Dislocated Worker
• Centralized staff (seven) handle the entire statewide caseload
• Agency leads petition process
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What Does Co-Enrollment Mean?
1. Every person eligible for TAA, is automatically eligible for Dislocated Worker.
2. Each job seeking customer gets a Dislocated Worker counselor (in field) and a TAA specialist (in St. Paul).
3. The counselor and specialist work together to ensure easy service.
4. More resources available for each customer.34
2011 TAAEA Enactment
• Signed into Law on October 21, 2011
• New program benefits and services began immediately
• The TAA program administers three distinct sets of rules for the 2002, 2009, and 2011 provisions
2011 Implementation activities
• 2011 Choice process
• Waiver changes
• TRA changes
• State’s discretion for job search and relocation allowance
• Training Benchmarks
2011 Choice/Election Process2011 TAAEA Choice Process
1. Available to TAA participants covered under an 80,000 series petition and served under the 2002 program.
2. Participants can make a one-time choice between 2002 or 2011 program.
2011 Choice/Election Process2011 TAAEA Choice Process
2. As of Dec. 20, 2011, are you receiving any of the
following benefits or services?
If the petition is numbered 81,000 and above or from
80,000-80,999 and the participants have not received
any benefits, workers automatically eligible to apply for 2011 Program benefits and services (no election required)
TRA/ATAA Payment
Training waiver
Enrolled in training, participated in
training, or completed training
Been approved for job search or relocation allowances (even if
payment has not yet been made)
Worker can stay on the 2002 Program, or can elect to take advantage of the benefits and services offered by the 2011 Program. This choice must
be made before March 19, 2012.
Yes
No
No No No
Yes
Yes Yes
Yes
1. Is your petition number between
80,000 and 80,999?
Training Waiver Requirement Changes
2002 and 2009 TAA Programs• Six options:
• Health Condition• Enrollment in Training
is not Available• No Training is
Available• Recall • Marketable Skills• Retirement
2011 TAAEA Program• Three options:
• Health Condition• Enrollment in
Training is not Available
• No Training is Available
40
2011 TRA changes
• Elimination of Remedial and Prerequisite TRA.– Remedial and prerequisite training should continue to
be part of an approved training plan where appropriate.
• Addition of Completion TRA– Provides participants with up to 13 additional weeks of
TRA within a 20 week period in order to complete their training plan.
• Concern: – Fall and Spring semesters run 17-18 weeks.
– Participants who exhausting Completion TRA before finishing their training program may be in jeopardy of an overpayment.
Maximum TRA Eligible Weeks
2002: 130 potential weeks
– Up to 26 weeks of Unemployment Insurance
– 26 weeks of Basic TRA– 52 weeks of Additional TRA– 26 weeks of Remedial TRA
2009: 156 potential weeks
– Up to 26 weeks of Unemployment Insurance
– 26 weeks of Basic TRA– 78 weeks of Additional TRA– 26 weeks of Remedial/Prerequisite TRA
2011: 130 potential weeks
– Up to 26 weeks of Unemployment Insurance
– 26 weeks of Basic TRA– 65 weeks of Additional TRA– 13 weeks of Completion TRA
Job Search & Relocation Allowances
• 2011 reverts back to 2002 levels, although states will not receive additional funds to administer these benefits.
• 2011 TAAEA allows states’ discretion to offer workers Job Search and Relocation Allowance benefits.
• Minnesota will continue to provide these benefits.
• Nine out of ten states in our region have elected to offer these benefits.
Training Benchmarks
• Two criteria:• Satisfactory academic standing• On track to complete training within the agreed upon timeframe
• Reviews conducted at 60 day intervals after training begins.
• Documented in individual plans and signed by participant.
• Encourages intervention and modification of unsuccessful training plans, and modifications to complete credentials.
• Minnesota is designing a state-wide individual TAA plan through our case management database.
• TAA regularly meets or exceeds standards• High performance persists through recent
economic hardships
Accomplishments - Outcomes
Trade Adjustment Assistance (TAA) At-a-Glance Statewide Performance Program Year 2010 (July 1, 2010 - June 30, 2011)
ServedGetting a
Job Standard
Getting a Job
Results
Keeping a Job
Standard
Keeping a Job
Results
Credential Rate
Standard
Credential Rate
Results
2 Qtr Wage Standard
2 Qtr Wage
Results
3,144 83.0% 87.5% 88.0% 94.8% 62.0% 65.1% $16,400 $17,619
Accomplishments - Improvements
• 2010 - revised entire application process
• 2011 - revised purchase order process
• 2011 - established participant portal /applytaa
• 2011 and 2012 - clarify case management model
www.positivelyminnesota.com/applytaa
• One-stop shop for the new TAA customer
• Public site, with only a “side door”
• Will always have the most recent information on TAA relevant to Minnesota
• We are developing a “Counselor Portal”
Accomplishments –
The Minnesota TAA team was nominated for a 2011 Governor’s Continuous Improvement award.
Challenges for 2012
1. Train counselors intensively on the clarified case management model and waiver confusion;
2. Continued implementation the latest TAA law;
3. Integrate and develop new staff;
4. Maintain pace of continuous improvement with initiatives to enhance customer notification, process payments more quickly, and integrate with TRA processes.
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The Health Coverage Tax CreditTrade Adjustment Assistance Extension Act of 2011
Last Update: December 2011
Question and Answer
For more information:
The Working for America Institutewww.workingforamerica.org
Ragini Kapadia, Sr. Economic Analyst, [email protected]
The National Employment Law Projectwww.nelp.org
Lindsay Webb, TAA Coordinator, [email protected] Minick, Dislocated Worker Specialist, [email protected]
MN’s Department of Employment and Economic Developmentwww.positivelyminnesota.com/taa
Debra Schlekewy, Program Coordinator, [email protected]
IRS Health Coverage Tax Credit Stakeholder Engagement www.irs.gov/hctc
For questions or materials, email: [email protected]