The Commonwealth is best served by a public system of insurance that will alleviate the economic hardships of the involuntarily unemployed. Likewise, the system should stabilize the workforce and reduce the impact of unemployment on the economy. The system should provide both economic security and incentives to re-enter the workforce. The system should also provide equitable treatment to both claimants and taxpayers.

Pennsylvania's Unemployment Compensation (UC) costs are out of line with other states and the Chamber supports changes that will:

• Bring fairness to our UC law and system;
• Ensure that only workers with a legitimate attachment to the workforce receive benefits; and
• Make us consistent and competitive with other states.

Specifically, the Chamber supports:

• A system limited to temporary, partial benefits only for those who are unemployed through no fault of their own. Periodic review and update of benefit schedules and wage base indexes. Automatic adjustments are opposed.
• An experience rating system that fairly computes employer taxes through increases in the share of experience rating charges.
• The registration for employment search services by individuals through Pennsylvania's CareerLink system to ease their transition to work.
• Benefits that are based upon prior earnings and covered employment and reflect replaced wages.
• A UC fund that is reactive to economic and fund balance levels to ensure solvency.

Approved by the Board of Directors on 6/8/07.

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