1 trade and globalization adjustment assistance act comparison of trade act of 2002 and the trade...
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Trade and Globalization Adjustment Assistance Act
Comparison of Trade Act of 2002 and the Trade Act of 2009
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What is the Trade Adjustment Assistance (TAA) Program?
The TAA program is federally funded and provides training and reemployment services to trade-affected workers who have lost their jobs as a result of foreign competition.
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Purpose of TAA Program
The TAA program is designed to provide workers the means to attain competitive and marketable skills for today’s work environment.
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Historic Background
The Trade Act of 1974 provided trade adjustment assistance for dislocated workers affected by the North America Free Trade Agreement (NAFTA) with Mexico and Canada. There have been numerous amendments since the original enactment.
The Trade Act of 2002 repealed NAFTA/TAA, expanded eligibility to workers affected by trade from additional countries, and provided for additional benefits to trade-affected workers.
The Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, effective May 18, 2009, expands coverage to workers in the service sector and public agencies which may be affected by foreign competition from any country. It also provides additional benefits for workers.
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TAA Governing Law & Regulations
Trade Act of 1974, as amended
Code of Federal Regulations – 20 CFR 617
Operating Instructions for Implementation of the Trade Act of 1974 Enacted by the Trade and Globalization Adjustment Assistance Act of 2009 (Training and Employment Guidance Letter (TEGL) No. 22-08)
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Group Eligibility
Old Trade Program
The worker’s firm must produce an article
Shifts in production had to be to a country that had specified trade agreements with the US
New Trade Program
Expands TAA coverage to service sector workers
Expands eligibility to workers in public agencies
Shifts in production or shifts of service to any country
Expands TAA eligibility to all shifts in production or shifts of service, without the need to prove increased imports
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Group Eligibility (cont’d)
Old Trade Program
Workers at downstream producers that are secondarily affected by increased imports or a shift in production to Canada or Mexico
New Trade Program
Expands definition of downstream producers, and applies it to all countries
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USDOL Determinations
Old Trade Program
40 days to conduct an investigation, issue a determination and publish a notice in the Federal Register
Impact date retroactive to one year from petition filing date if separated from employment within one year of petition date
New Trade Program
40 days to conduct an investigation, issue and publish determinations in the Federal Register, as well as the United States Department of Labor (USDOL) website
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USDOL Determinations (cont’d)
Old Trade Program New Trade Program
Requires the USDOL to establish standards and data requirements for investigation of petitions and criteria for making determinations
In verifying the information for a determination, the USDOL is required to use a subpoena if the information is not provided within 20 days of request unless the firm or its customer demonstrates that it will provide information in a reasonable period of time
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USDOL Determinations (cont’d)
Old Trade Program
A specific request for Alternative Trade Adjustment Assistance (ATAA) for Older Workers was required to be included in the Petition in order for workers to be eligible to apply for ATAA benefits
New Trade Program
The new Reemployment Trade Adjustment Assistance (RTAA) replaces ATAA. No separate request for RTAA is required by petitioners; all workers age 50 or older covered under any certification may apply for individual eligibility for RTAA
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Information to Workers
Old Trade Program
Upon receipt of a certification from the USDOL, States, as agents of USDOL, issue newspaper notices and letters to potential participants based on lists of adversely affected workers provided to the state by employers or other sources such as unions
New Trade Program
No change
Adds new provision for USDOL to notify US Department of Commerce of each firm certified (increasing awareness of TAA for firms)
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Trade Readjustment Allowances (TRA) Qualifying Requirements
Old Trade Program
Worker must be enrolled in training or receive a waiver of the training requirement within 8 weeks of certification or 16 weeks of layoff date (8/16 week deadline)
Provides 45 days more if extenuating circumstances exist
60 days waiting period after filing petition to receive TRA
New Trade Program
Worker must be enrolled in training or placed on waiver of the training requirement within 26 weeks of certification or layoff
45-day period remains unchanged
Provides for additional redress if worker misses application and enrollment deadlines due to not receiving notification
Removes 60 day waiting period after certification limit on receipt of TRA
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Trade Readjustment Allowances Qualifying Requirements (cont’d)
Old Trade Program
Waivers of the enrolled in training requirement may be issued under six conditions for up to six months
Must be reviewed and reauthorized every 30 days
Training requirement may be waived only after an assessment is completed
New Trade Program
No change
Waiver reviewed three months after issuance, then monthly
This requirement is still in effect
Marketable skills waivers may include post-graduate degrees
Retirement waivers do not require review
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Trade Readjustment Allowances Qualifying Requirements (cont’d)
Old Trade Program
Failure to begin, or cease training without justifiable cause, will stop TRA benefits until training resumes
Employed 26 of previous 52 weeks with $30 earnings per week (with the trade-affected company)
Must exhaust Unemployment Insurance (UI) benefits (including extended benefits)
No deadline for training enrollment if not eligible to receive TRA
New Trade Program
No change
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Trade Readjustment Allowances Weekly Amounts
Old Trade Program
All TRA is equal to workers UI Weekly Benefit Amount (WBA)
If a trade-affected worker gets a new job and is subsequently laid off, his/her UI benefits may be lower than the original TRA WBA.
New Trade Program
Workers in full-time training: Part-time wages up to the WBA shall not be counted as earnings for purposes of deductible income
Allows workers to choose between receiving TRA or UI if the filing of a subsequent UI claim could result in a lower weekly benefit amount
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Trade Readjustment Allowances Limitations
Old Trade Program
TRA provides income support beyond UI
Basic TRA equals 52 weeks minus any weeks of UI received and must be used within 104 weeks after Qualifying Separation or foregone.
Application for training must be made within 210 days to qualify for additional TRA
New Trade Program
No change
No change
Strikes the 210 day rule for bona-fide application for training and receipt of additional TRA
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Trade Readjustment Allowances Limitations (cont’d)
Old Trade Program
Provides 52 weeks of additional TRA benefits if participating in training with no breaks greater than 30 consecutive days.
Additional TRA must be used within 52 consecutive weeks.
New Trade Program
Provides 78 weeks of additional TRA benefits to allow longer term training
Provides a 91-week period in which the worker may collect up to 78 weeks of TRA, allowing for up to 13 weeks in training breaks (summer or employment) during which the worker is not eligible to receive TRA
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Trade Readjustment Allowances Limitations (cont’d)
Old Trade Program
An additional period up to 26 weeks of TRA is also available to workers participating in remedial education
New Trade Program
The 26-week additional period may also be used for prerequisite courses
Provides protection for workers covered under certifications delayed by judicial and administrative appeals
Adjusts period of eligibility for workers called up for active military duty if service lasts at least 30 days (restarts enrollment process)
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Application of State Laws
Old Trade Program
State law may not be used to waive deadlines
New Trade Program
Time limitations for application for TRA or training enrollment, or late filing of claims may be waived if state UI law, regulation, policy, or practice provides a good cause waiver, e.g., agency error or claimant was not at fault (if consistent with State UI laws).
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Service Delivery Systemand WIA Wrap Around Services
Old Trade Program
States choose which agency to designate as responsible for TAA program
Enrollment of trade affected workers in WIA is voluntary
New Trade Program
No change
No change
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Service Delivery System and WIA Wrap Around Services (cont’d)
Old Trade Program
States cannot use TAA funds for wrap around services provided by other programs, i.e., career counseling, assessment and job placement services
New Trade Program
Creates an additional entitlement to case management and employment services to include Comprehensive Assessments, Individual Employment Plans, information on available training, information on financial aid, prevocational services, career counseling, labor market information, and availability of supportive services. These are payable with TAA funds.
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Service Delivery System and WIA Wrap Around Services (cont’d)
Old Trade Program
States receive an additional 15% of training funds for program administration.
New Trade Program
States receive an additional 15% of training funds. At least 1/3 of these funds must be used for case management. No more than 2/3 of these funds may be used for administration.
An additional $350,000 annually per state is provided for employment and case management which cannot be used for administration or MIS improvements.
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Service Delivery System and WIA Wrap Around Services (cont’d)
Old Trade Program New Trade Program
Section 239 Agreement with States requires USDOL to establish procedures to ensure uniform application by the States and includes new monitoring and data requirements
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Funding
Old Trade Program
$220 million annually
75% allocated at beginning of year
25% in reserve for high participant activity
New Trade Program
Increases cap to $575 million
Requires 35% of training funds held in reserve, but 90% of all funds must be distributed by July 15
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Funding (cont’d) Old Trade Program
85% Hold Harmless
New Trade Program
Provides specific factors to take into consideration in creating new funding formula including 25% hold harmless and more current activity projections:
Number of workers certified in most recent 4 quarters Number of workers in training in most recent 4 quarters Number of workers estimated in training during the fiscal year Estimate of training funds needed for fiscal year Other factors
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Funding (cont’d)
Old Trade Program New Trade Program
Requires USDOL to enact regulations to carry out the funding formula provisions within one year of enactment (February 17, 2010)
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Training Programs
Old Trade Program
Workers are “entitled” to the full cost of training
No part-time or incumbent worker training
New Trade Program
This requirement is made more explicit in the 2009 Amendment
Allows for Incumbent Worker training without UI or TRA
Allows for part-time training without TRA
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Training Programs (cont’d) Old Trade Program
By regulation, training is available for up to two years, with an additional 6 months available for workers who require remedial education
New Trade Program
Training may be approved that exceeds the availability of TRA if worker can demonstrate having adequate financial resources and having the means to pay for the cost of training (beyond 156 weeks)
Training may not be limited by WIA approvable training
Allows TAA training for incumbent workers except for On-the-Job (OJT) and customized training, in adversely affected employment
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Training Programs (cont’d)
Old Trade Program New Trade Program
Allows TAA training to include registered apprenticeship programs
Obtain or complete a degree or certification program
Workers who take temporary work during a break in training may not be determined ineligible for UI/TRA and may elect to receive TRA instead of the new UI benefits
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Training Programs (cont’d)
Old Trade Program New Trade ProgramCreates new standards for OJT:
Expectation of suitable employment with employer Compatible with workers’ skills A curriculum that creates proficiency in the worker Benchmarks indicating attainment of knowledge and skills Shall not exceed 104 weeks
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Training Programs (cont’d)
Old Trade Program New Trade Program
Workers who leave OJT within 30 days of starting, if training did not meet all requirements, may not be determined ineligible for UI/TRA and may elect to receive TRA instead of any new UI entitlement
Prerequisites are considered similar to remedial training (up to 26 weeks total)
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Job Search Allowances
Old Trade Program
The program will reimburse 90% of the total expenses capped at $1,250 per participant to help workers search for employment outside their local commuting area
New Trade Program
Increases the percentage of job search expenses that may be paid on behalf of a qualified participant to 100% of the total expenses capped at $1,500
Strikes restriction on people who got a waiver allowing application up to 182 days after training completion
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Relocation Allowances
Old Trade Program
The program will cover 90% of expenses to help cover the costs of moving for workers who obtain new employment in another area
Lump-sum payment up to $1,250
New Trade Program
Increases the percentage of relocation expenses that may be paid on behalf of a qualified participant to 100% of the total expenses
Lump-sum payment up to $1,500
Strikes restriction on people who got a waiver allowing application up to 182 days after training completion
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Collection and Publication of Data Old Trade Program New Trade Program
Requires the USDOL to report on:
Number of petitions, certifications, and denials, and the basis for the certificationsData on training by major types of trainingData on outcomesData on Rapid Response activities
Requires an annual report to Congress as well as posting on USDOL website
Requires USDOL to implement a system to collect data on adversely affected workers employed in the service sector within 90 days of enactment
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Agreement and Data Collection
Old Trade Program New Trade Program
States are required to collect, validate, and report new data elements to USDOL
Satisfactory immigration status must be verified for an individual who is not a citizen or national (and re-verified if immigration documents expire while worker is receiving benefits) through the Systematic Alien Verification for Entitlement (SAVE) program
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Agreement and Data Collection Old Trade Program New Trade Program
Cooperating agreements have additional clauses:
Outreach and orientation must be performed States must include monitoring, oversight and control measures to improve accuracy and timeliness of data which must be reported quarterly Employment and case management services must be provided, including the use of other federal programs as needed
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Overpayment
Old Trade Program
If a claimant receives an overpayment, repayment may be waived if the overpayment occurred without fault and the repayment “would go against equity and good conscience”
New Trade Program
In case of an overpayment, repayment shall be waived if the overpayment occurred without fault and repayment would cause financial hardship for the individual or the household
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ATAA versus RTAA
Old Trade Program
Available to certified group of workers that obtain reemployment not more than 26 weeks after the date of separation, are at least 50, and earn not more than $50,000 a year in a different full-time job
Available only if ATAA was specifically approved as part of the certification
New Trade Program
RTAA replaces ATAA
Strikes the requirement that a worker finds employment within 26 weeks of being laid-off
Increases the limit on wages in eligible reemployment to $55,000 a year
Eliminates the requirement for a group certification
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ATAA versus RTAA (cont’d) Old Trade Program
Wage supplement of up to $10,000 over two years is available only to workers age 50 and over
Full-time workers eligible for ATAA
The wage subsidy is equal to 50% of the difference between reemployment wages and wages from employment prior to trade-affected layoff
New Trade Program
Increases the wage supplement to up to $12,000 over two years
Allows a worker to qualify for RTAA when working part-time, if employed at least 20 hours a week and participating in approved full-time training
The percentage of wage subsidy is variable based on weekly hours of employment before (trade-affected employment) and after (reemployment) but no more than 50% of the difference
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ATAA versus RTAA (cont’d)
Old Trade Program New Trade Program
Allows RTAA participants to receive TAA-funded training, employment and case management services
Allows recipients to go from TRA to RTAA, but may not receive concurrently
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ATAA versus RTAA (cont’d) Old Trade Program New Trade Program
Two Year (104 week) Benefit Period: An individual who has not received
TRA, two years from UI exhaustion based on trade employer separation or two years from date when qualifying reemployment is obtained
An individual who received TRA may receive RTAA for up to 104 weeks from date of reemployment. The time period for receipt of RTAA is reduced by number of weeks of TRA
RTAA no longer a Pilot - It is part of TAA and is due to expire with TAA on December 31, 2010
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Program Administration
Old Trade Program New Trade Program
Creates an Office of TAA directly under Division of Administrative Services (DAS) rather than Office of National Response (ONR) at USDOL
Requires USDOL to designate an officer to receive, resolve complaints and requests for assistance
New accountability and transparency provisions
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Health Coverage Tax Credit (HCTC) Old Trade Program
Available to workers who are receiving TRA or would be eligible to receive TRA if they had exhausted their UI or workers receiving an ATAA wage supplement
HCTC pays 65% of health coverage premium for eligible workers who have qualified coverage
New Trade Program
New HCTC benefits are made available retroactively (effective March 1, 2009) to eligible TRA and ATAA recipients.
RTAA beneficiaries are also eligible for HCTC. (Effective May 18, 2009)
Effective May 1, 2009, HCTC pays 80% of health coverage premium
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Health Coverage Tax Credit (cont’d)
Old Trade Program New Trade Program
Scheduled breaks in training may not impact HCTC eligibility
Non-Trade workers who are involuntarily terminated get 65% support for COBRA payments for 9 months if same year income is less than $125,000 for an individual or $250,000 for a family (no “UI” requirement in language)
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TAA Related Websites
United States Department of Labor – Employment & Training Administration - http://www.doleta.gov/tradeact/(Guidance for the 2009 Amendment can be found in TEGL No. 22-08.)
Florida Department of Economic Opportunity -http://www.floridajobs.org/workforce/TAA_home.html
Internal Revenue Service – HCTC Site http://www.irs.gov/individuals/article/0,,id=109915,00.html
Florida Apprenticeship Programhttp://www.fldoe.org/workforce/apprenticeship/benefits.asp
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Contact Information
Trade Program Unit1-800-342-3450