The solvency of the state's Unemployment Compensation Trust Fund has put UC reform back in the headlines in the General Assembly.

Due to revenue growth being constrained and the liberalization of benefits over the years, state officials must decide how to address the solvency of the fund. Federal and/or state legislative action is expected within the next several months.

The PA Chamber has been meeting with state officials on that matter and on the broader issue of UC reform measures that would address the inequities in the unemployment compensation system, which would, in the end, control future costs.

Last session, PA Chamber members' UC reform plan was introduced in the Pennsylvania General Assembly by a contingent of House lawmakers. Efforts are underway to secure legislative sponsorship for the initiatives in the newly underway 2009-10 session.

Some of the reforms the PA Chamber would like to see enacted include, but are not limited to:

• Allowing UC referees to dismiss appeals if the appellant fails to appear for the hearing
• Clarifying that a claimant is ineligible for benefits if unemployment is due to “willful” misconduct
• Requiring UC claimants to participate in job search programs
• Evaluating the cost benefit of eliminating local UC service centers and replacing local, in-person initial interviews with the current telephone application system and online application system.
• Requiring severance pay offsets for UC benefits