The Unemployment Compensation Advisory Council has unanimously approved a proposed legislation package that will reduce the amount of unemployment benefits offset from workers who are also receiving Social Security. The package will be forwarded to the Ohio General Assembly for action.

The proposal, targeted to go into effect January 1, 2007, establishes that only half the amount of a recipient's Social Security benefit will be deducted from the monthly unemployment benefit unless the balance of the unemployment trust fund is greater than the defined safe level, in which case there will be no deduction.

"These are responsible changes that are in line with what other states are doing," said Andrew E. Doehrel, President of the Ohio Chamber and co-chair of the UCAC. "I am also pleased that both labor and management are contributing to the funding of these measures."

The council also approved language that reduces the amount of earnings needed for low-wage workers to qualify for benefits. The current eligibility requirement, based on the statewide average weekly wage, is the equivalent of an average weekly wage of 38 hours at the federal minimum wage. The proposed language ties eligibility directly to the minimum wage amount multiplied by 28 hours.

The council also recommended a proposal to start in 2009 to phase out payments based on the number of dependents and adopt a single rate of 54 percent of the statewide average weekly wage by 2014. The costs of the changes in the proposed legislative package and steps to improve the fund's solvency are to be covered by a two-year freeze in the maximum benefit rates and a $500 increase in the taxable wage base, targeted to start in January 2007.

The Unemployment Compensation Trust Fund supports the benefits paid to unemployed workers while they look for work. There are approximately 230,000 Ohio employers whose workers are eligible to receive Unemployment Compensation. Ohio employers paid $926 million to the trust fund in State Fiscal Year 2005.

The 12-member Unemployment Compensation Advisory Council was formed to recommend legislation to ensure a sound and legal unemployment compensation program for Ohio. Members include three state senators, three state representatives, and representatives of the employer community and employees and labor. A membership list may be found online at: http://jfs.ohio.gov/ouc/ucac/memberslist.pdf

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