New Developments on Federal Unemployment Extensions (Up-dated July 3, 2012)

California Employment Development Department:

en Español

07/3/12 1:30 p.m.

Updated: Number of individuals who have run out of benefits is now over 793,800.

One of the extension programs, typically the final round of extensions known as the FED-ED here in California, is now coming to an end. The state Employment Development Department (EDD) has been notified by the U.S. Department of Labor that the state no longer meets the minimum criteria for providing FED-ED extension benefits. While California’s total unemployment rate remains high, the three month average is not 10% higher than it was during the same three month period during one of the last three years as required by the federal program.

That means the week ending May 12, 2012, will be the last week EDD can pay FED-ED benefits to eligible unemployed workers, even if someone has a remaining balance on their FED-ED extension. The EDD estimates about 93,000 people in California will be immediately impacted, including those collecting FED-ED benefits now and those who could qualify to file a new FED-ED extension up through May 6, 2012.

The EDD has sent notices to these affected individuals to alert them to the situation and ensure they are aware of this federally mandated end to the FED-ED program. The notices include information and references to other government resources and social services to assist these long – term unemployed workers. In addition, we have developed some frequently asked questions for FED-ED on the FAQ – Extended Unemployment Benefits page

Here are some additional details and what happens to the rest of the federal extension benefits in the state:

• The FED-ED program has been available in California since March 2009 and since that time more than 932,000 Californians have been able to collect FED-ED benefits, infusing close to $5.2 billion in federal funds into the state economy to help unemployed workers, their families, and their communities.
• The end to the FED-ED program reduces the maximum amount of unemployment benefits available. Typically up to 26 weeks of regular Unemployment Insurance (UI) benefits are available to qualified unemployed workers. The federal government added four tiers of federal extension benefits providing up to 53 weeks of additional benefits through the recession. The FED-ED extension added another up to 20 weeks of benefits. The grand total of up to 99 weeks was the potential maximum which will now come down to up to 79 weeks for qualified unemployed workers.
• With the end to the FED-ED program, the Tier 4 federal extension will temporarily change from offering up to 6 weeks of benefits to up to 16 weeks of benefits. But according to the Middle Class Tax Relief and Job Creation Act of 2012, this change will only be for those qualified unemployed workers who file a new Tier 4 extension effective May 13, 2012, or May 20, 2012. For these few individuals, the potential maximum amount of unemployment benefits will be up to 89 weeks.
• The recent federal extension legislation requires some further changes in the federal extension program come May 27, 2012, and September 2, 2012. Please see the chart below for further details.

Federal Unemployment Benefit Extensions
Potential Maximum Weeks of Benefits Provided

Here is a breakdown of the filing deadlines for federal extension benefits and the total maximum weeks of unemployment benefits available in California.

*For individuals that file a FED-ED extension effective May 6, 2012, or before, the last payable week is May 12, 2012, even if that individual is still unemployed or has a balance remaining on the FED-ED extension.

Current Benefits Status

Currently, there are more than 1.1 million people certifying for benefits in California. The majority of these customers are collecting on a federal extension claim while the remainder are somewhere in the midst of a regular unemployment claim. A regular claim provides up to 26 weeks of benefits and federal extension benefits provide up to another 73 weeks of benefits if filed before September 1, 2012, and 67 weeks of benefits, if filed after September 1, 2012, provided by the federal government due to the length and severity of the economic recession.

Between regular and federal extension benefits, the EDD has paid a total of $17.1 billion in benefits for calendar year 2011 and $4.65 billion so far this year (as of April 13, 2012), and is currently paying about $310 million a week. These benefits provide critical sustenance to unemployed workers and their families, in addition to local businesses where much of the benefits are spent on basic needs.

Customers Who Have Run Out of Maximum Benefits

The maximum total of unemployment benefits remains up to 99 weeks of benefits for extensions filed before May 13, 2012. As of July 2, 2012, there have been more than 793,800 unemployed workers in California who have run out of all available benefits, up to the 99 week maximum.

Unemployed individuals may be eligible for assistance to meet basic needs as well as other services such as health care, counseling, employment and training assistance. For more information, read the Assistance for Unemployed California Residents flyer and the Job Dislocation Brochure: English | Spanish.

For any further developments in the Unemployment Insurance program, as well as all other EDD programs and services, we encourage our customers watch for updates on our Web site and on our EDD Twitter and Facebook pages