Member Sign In
Renew your Membership
Membership Directory
Member Benefits
About the Chamber

• Promote Your Business
• Money-Saving Programs
• Electronic Certificates of Origin

• Taxes
• Health care
• Legal Reform
• Labor Laws
• Environmental Laws
• More...

PA Chamber members’ goal of strengthening Pennsylvania’s unemployment compensation law has culminated in the passage of a responsible reform measure.

Lawmakers in the House unanimously approved S.B. 1030 on June 16, setting up a concurrence vote in the Senate. The bill institutes several reasonable reforms to the UC law that results in $133 million in annual cost savings to the UC Trust Fund. 

Notably, some of the agreed upon reforms slow the growth of the UC fund by freezing the maximum weekly benefit rate for a year, then instituting incremental increases in the rate over the next five years. Also, beginning in 2015, claimants would be eligible for a week of benefits for each week they worked up to 26 weeks – a change from current law, which requires 18 work weeks to earn 26 weeks of benefits.  This “week of work for week of benefits” provision will save the fund nearly $50 million when it takes effect.

Senate Bill 1030 now will require claimants to prove they are actively searching for work via Pennsylvania’s CareerLink in order to qualify for UC benefits. The bill also provides for automatic relief from charges for employers; and sets up a 40 percent severance pay offset to prevent recipients from collecting severance pay and UC benefits at the same time.

As currently administered, the UC system is unsustainable and significant changes are necessary to bring solvency to the UC Trust Fund.  The PA Chamber recognizes that SB 1030 is a start; and applauds passage of this legislation as good public policy at a time when Pennsylvania’s jobless were facing the expiration of their extended benefits. The PA Chamber will continue to engage in good faith with stakeholders and policymakers to help find a solution to the daunting challenge of addressing the solvency of our Fund and ensuring that the UC system remains in tact for those who separate from employment through no fault of their own.

“Passing this legislation is a good first step to address the overuse of a fund that has grown well beyond its intended purpose,” PA Chamber Vice President Gene Barr said.

“The reforms in Senate Bill 1030 will help slow the fund’s demand so it can continue to serve those who truly need it; and will initiate a dialogue going forward on ideas to save costs and reduce debt in the UC system.”

Although the bill would save the Commonwealth $133 million in annual savings, it does not address the UC Trust Fund’s insolvency. PA Chamber members encourage continued discussions in the near future to develop additional cost-saving measures that will responsibly pay back Pennsylvania’s $4 billion loan to the federal government.

###

The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with thousands of statewide members representing businesses of all sizes and all industry sectors. The PA Chamber is The Statewide Voice of Business™. More information is available on the Chamber’s website at www.pachamber.org.