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The 2011 amendments to the Trade Adjustment Assistance for Workers program expire on December 31, 2013. If there is no action taken by Congress, the program will revert to a modified version of the 2002 program. This presentation represents a summary of what that reverted program will look like. Congress may pass legislation prior to December 31, 2013, or may even pass legislation after that date with retroactive provisions (as they did in 2011). ETA will issue official guidance to the system based on either an expectation of reversion or Congressional action. This presentation is intended to provide an informal summary to the system and stakeholders. Questions should be directed to the appropriate Regional Office.
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Employment and Training AdministrationRegion 1 (#ETARegion1)
Trade Adjustment Assistance for Workers
Program Reversion 2014
December 2013v2.2.1
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United States Department of LaborMission Statement
To foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.
www.dol.gov/100
3
Disclaimer
The 2011 amendments to the Trade Adjustment Assistance for Workers program expire on December 31, 2013. If there is no action taken by Congress, the program will revert to a modified version of the 2002 program. This presentation represents a summary of what that reverted program will look like. Congress may pass legislation prior to December 31, 2013, or may even pass legislation after that date with retroactive provisions (as they did in 2011). ETA will issue official guidance to the system based on either an expectation of reversion or Congressional action. This presentation is intended to provide an informal summary to the system and stakeholders. Questions should be directed to the appropriate Regional Office.
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Materials Overview
2011 Amendments – Reversion Eligible Worker Groups Reemployment-Alternative Trade Adjustment Assistance (R-ATAA)
Deadlines, benefits amounts, application process, etc. Trade Adjustment Assistance (TAA)
Training, waivers, etc. Trade Readjustment Allowance (TRA)
Deadlines, durations, etc. Case Management Job Search & Relocation Health Coverage Tax Credit Merit Staffing Requirements Financial Management & Program Reporting
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2011 AmendmentsReversion Language
All good things must come to an end.
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2011 Legislative Language
SEC. 233. SUNSET PROVISIONS.APPLICATION OF PRIOR LAW.—Subject to subsection (b), beginning on January 1, 2014, the provisions of chapters 2, 3, 5, and 6 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.), as in effect on February 13, 2011, shall apply, except that in applying and administering such chapters…
On December 31, 2013, the Trade Adjustment Assistance for Workers program will revert to a modified version of the Trade Reform Act of 2002
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Petition Process &Worker Group Eligibility
Because who doesn’t love government forms?
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Filing Petitions
Online at www.doleta.gov/tradeactFax to: (202) 693-3585Mail to:U.S. Department of Labor, Office of Trade Adjustment Assistance200 Constitution Avenue, NW, Room N-5428Washington, DC 20210
NOTE: Deadline to file for coverage under 2011 provisions is 11:59pm EST, Tuesday, December 31, 2013
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Who Can File a Petition?
Group of 3 or more workers Company Official Union State Workforce Official American Job Center Network Partner
– Rapid Response, Employment Service, Unemployment Insurance, WIA provider, etc.
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Petition Processing
Upon receipt of petition, investigators contact the company Gather information on locations, temp workers, remote
workers, divisions within company Company provides information on a confidential basis to
the Department Investigator recommends decision to a Certifying Officer
who issues the decision States ensure the provision of Rapid Response
services, if not already provided Process takes approximately 40 days
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Primary Affected Workers – Reversion 2014
Increased imports (all must be true) Criterion 1: Significant number/proportion of
workers totally or partially separated or threatened with separation
Criterion 2A:– Sales and/or production has decreased absolutely– Imports like or directly competitive with goods
produced by workers’ firm have increased– Increased imports contributed “importantly” to
actual/threatened separation
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Shift In Production – Reversion 2014
Shift in production (both must be true) Criterion 1: Significant number/proportion
of workers totally or partially separated or threatened with separation
Criterion 2B: – There has been a shift of production by
workers’ firm of like or directly competitive articles to certain foreign countries.
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List of Specific Nations – Shift In Production
Free Trade Agreements (http://www.trade.gov/fta/)
– Australia, Bahrain, Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Canada, Mexico, Israel, Jordan, Morocco, Oman, Peru, Singapore
Andean Trade Preference Act (http://www.ustr.gov/trade-topics/trade-development/preference-programs/andean-trade-preference-act-atpa)
– Bolivia, Colombia, Ecuador– Peru (Now a free-trade nation.)
NOTE: The list of nations with free trade agreements is subject to change. List as of October 31, 2013.
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List of Specific Nations – Shift In Production
Caribbean Basin Economic Recovery Act (http://www.ustr.gov/trade-topics/trade-development/preference-programs/caribbean-basin-initiative-cbi)
– Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Dominica, Granada, Guyana, Haiti, Jamaica, Montserrat, Panama, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, Virgin Islands (British)
– List as of June 10, 2013
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List of Specific Nations – Shift In Production
African Growth and Opportunity Act (http://trade.gov/agoa/eligibility/index.asp)
– Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, Cote d’Ivoire, Comoros, Republic of Congo, Djibouti, Ethiopia, Gabonese, The Gambia, Ghana, Guinea, Kenya, Lesotho, Liberia, Malawi, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland, Tanzania, Togo, Uganda, Zambia
NOTE: The list of eligible nations under AGOA is subject to change. Please check the trade.gov site for the most recent changes.
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Worker Group Eligibility – Reversion 2014
Upstream (Secondary)1. Firm that produces and supplies component parts
directly to another firm2. Component parts must be directly incorporated into
articles that were the basis of certification for primary workers
– Primary workers must be certified– Separations (or threat) at secondary firm– In addition, one of the following must be true:
• Component parts accounted for at least 20% of upstream producer’s production or sales
• Loss of business contributed importantly to workers’ actual or threatened separation
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Worker Group Eligibility – Reversion 2014
Downstream (Secondary)1.Firm that performs additional, value-added
production processes directly for a firm for articles that were basis of certification
2.Downstream production can include final assembly or finishing
– Must meet the following criteria:• Separations (or threat) at secondary firm• Loss of business with primary firm must have contributed
importantly to separations at secondary firm• Applies only to primary certifications based on increased
imports from or shift in production to Canada or Mexico
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Worker Group Eligibility Matrix
Program Version Manufacturing Services Public Sector Shift in Production / Secondary Certs
2002 YES NO NO Limited Countries
2009 YES YES YES Any Country
2011 YES YES NO Any Country
Reversion 2014 YES NO NO Limited Countries
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Petition Series Amendment / Version GuidanceI. TA-W-69,999 and below TAARA (2002 Amendments) TEGL 11-02 and Changes 1, 2, and 3;
TEGL 2-03, and Change 1; 20 CFR parts 617 and 618, and 29 CFR part 90.
II. TA-W-70,000 - TA-W-79,999 TGAAA (2009 Amendments) TEGL 22-08 and Change 1; Omnibus Trade Act; and 20 CFR parts 617 and 618, and 29 CFR part 90.
III. TA-W-80,000 - TA-W-80,999 TAARA (2002 Amendments) –or- TAAEA (2011 Amendments)
These workers are subject to either (I) or (IV), per TEGL 10-11.
IV. TA-W-81,000 - TA-W-84,999 TAAEA (2011 Amendments) TEGL 10-11, and Changes 1, and 2; and 20 CFR parts 617 and 618 and 29 CFR part 90.
V. TA-W-85,000 and above Reversion 2014 (2002 Amendments with TAAEA sunset provisions)
TEGL 11-02 and Changes, 1, 2, and 3; TEGL 2-03, and Change 1; and TEGL 10-11, and its Changes 1 and 2 where it applies 2011 policies retained per the 2011 sunset provisions; the operating instructions; and 20 CFR parts 617 and 618, and 29 CFR part 90,
11/26/2013
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Appealing Petition Denials – All Programs
1. Request administrative reconsideration of the determination;
2. Seek judicial review of the determination; and/or,
3. Seek reemployment services from other programs through the American Job Center Network (ie: WIA, NEG, ES)
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Alternative Trade Adjustment Assistance – Filing and Benefits
What’s old is new.
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ATAA and the Petition Process – Reversion 2014
Revised petition forms will include a box for petitioners to check to indicate that the worker group wishes to be considered for ATAA group eligibility
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ATAA Group Certification – Reversion 2014
Criterion 1: A significant number of adversely affected workers in the petitioning workers’ firm are 50 years of age or older (the lesser of 5% or 50 workers);
Criterion 2: The adversely affected workers in the petitioning workers’ firm possess job skills that are not easily transferable to other employment; and
Criterion 3: The competitive conditions within the affected workers’ industry are adverse.
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ATAA Eligibility – Reversion 2014
From a worker group that has been declared ATAA eligible Reemployed within 26 weeks of most recent qualifying
separation - not certification At least 50 years of age at the point of reemployment
Verified through appropriate documentation, such as a birth certificate or driver’s license
TEGL 10-11, Change 2 not applicable to ATAA Employed full-time as defined by state law
Should be verified with job offer letter or pay stub Earns no more than $50,000 a year at new employment
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ATAA Individual Eligibility – Reversion 2014
Does not return to employment from which the worker was separated (recall)
The application for ATAA must be filed within two years of the first day of qualifying reemployment
The worker must indicate that a “choice” has been made and that the worker understands that he/she cannot subsequently switch to the TAA program once they begin receiving the ATAA supplement– Receipt of the initial ATAA payment represents the individual’s
decision with respect to choosing ATAA and voids the participant’s rights to retraining, allowances and TRA.
– Correspondingly, once a worker has enrolled in training, he/she forfeits his/her right to ATAA participation.
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ATAA Benefits – Reversion 2014
50 percent of the difference between: The wages received by the worker from
reemployment; and The wages received by the worker at the
time of separation. Up to $10,000
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ATAA / RTAA Matrix
TradeProgram
Full Time Employment
Part Time Employment
Training + RTAA Maximum Amount
2002 – ATAA YES NO NO $10,000
2009 – RTAA YES YES YES $12,000
2011 – RTAA YES YES YES $10,000
Reversion 2014 YES NO NO $10,000
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Trade Adjustment Assistance(Training)
It’s not just training, it’s an adventure.
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Training Under Reversion 2014
Only full-time training can be approved Part-time training cannot be approved
Distance learning allowable Prerequisite and Remedial courses allowable Maximum of 130 weeks of training
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Training-Related Costs – All Programs
Allowable– All tuition & fees;
– Books, uniforms, supplies, equipment
– Transportation costs (mileage, mass transit, parking)
– Laptops and software (including tablets) may be purchased if they are required for all students by the institution for the approved training program
– Health insurance premium costs, if all students are required to carry health insurance and they are not otherwise covered
– Initial professional licensing fees and licensing exam fees
Not Allowable (under TAA funds)– Child care, Auto repair, etc.
• Allowable under WIA, NEG and other partner programs
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Training Matrix
Program Maximum Weeks of Approved Training
Part-Time Training Allowable
Breaks in Training (Days) for TRA
Remedial Training / Prerequisite Courses
Online Training
2002 130 NO 30 YES YES
2009 156 YES 30 YES YES
2011 130 YES 30 YES YES
Reversion 2014 130 NO 30 YES YES
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Trade Readjustment AllowanceDeadlines, waivers and duration, oh my!
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Enrollment Deadlines Under Reversion 2014
8/16 week deadline for enrollment in training or waiver from training – 8 weeks from the date of the petition certification; OR– 16 weeks from the worker’s most recent total separation from adversely
affected employment– 45-day “extenuating circumstance” extension is possible– No good cause exceptions (Federal or state) allowed– Equitable tolling is permissible (TEGL 08-11)
TRA eligibility: – From TEGL 11-02, Change 3, the above does not apply to be eligible for
Basic TRA, if the determination is made before the training deadlines. – A worker may receive Basic TRA prior to the 8/16 if all other eligibility has
been met in the Section 231(a) of the Act.– Once the enrollment deadline (8/16) is reached, the training requirement
must be met: enrolled in training or receipt of a waiver.
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“Enrolled in Training” – All Programs
20 CFR 617.11(a)(2)(vii)(D)– “Enrolled in training” means that the worker’s
application for training has been approved by the CSA and that the training institution has furnished written notice to the CSA that the worker has been accepted into the approved program which is to begin within 30 days of such approval.
Once “enrolled in training,” a participant is no longer subject to the EB work test or work search requirements under UI laws
TRA Deadline Related Provisions
Enrollment Deadline Provisions 2002 2009 2011 Reversion 2014
45-day Extenuating Circumstances Extension YES YES YES YES
State Good Cause Provisions Allowable NO YES NO NOFederal Good Cause Provisions Allowable NO NO YES NO
Military Service Deadline Extension Available NO YES YES NO
210-day Bona Fide Application for Training Rule YES NO NO YES
Equitable Tolling Allowable YES YES YES YES
Allowable Grounds for Extension of 104 Week Eligibility Period for Basic TRA
2002 2009 2011 Reversion 2014
Judicial or Administrative Review Extension NO YES YES NO
Justifiable Cause to Extend the Period NO YES YES NO
Military Service Deadline Extension NO YES YES NO
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Waivers Under Reversion 2014
Sunset provision limits the available waiver types to: Health, Enrollment Unavailable and Training Not Available
Health – The worker is unable to participate in training due to the health of the worker, except that this basis for a waiver does not exempt a worker from the availability for work, active search for work, or refusal to accept work requirements under Federal or State unemployment compensation laws.
Enrollment Unavailable – The first available enrollment date for the worker’s approved training is within 60 days after the date of the training determination, or, if later, there are extenuating circumstances for the delay in enrollment, as determined under guidance issued by the Secretary.
Training Not Available – Training approved by the Secretary is not reasonably available to the worker from either governmental agencies or private sources (which may include area vocational schools as defined in section 3 of the Carl D. Perkins Vocational and Technical Education Act of 1998 (20 USC 2302) and employers), no suitable training for the worker is available at reasonable cost, or no training funds are available.
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First Payable Week (TRA)
• Under Reversion 2014, the first week of TRA eligibility is the week that begins more than 60 days after the date on which the petition that resulted in such certification was filed.
• This is the same as 2002 but a change from 2009 and 2011
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Weeks of TRA – Eligible Weeks for Payment
Under the Reverted Program, the maximum payable weeks of TRA set at 130
– Basic TRA = 52 weeks
– Additional TRA = 65 weeks (13 grace weeks)
– Completion TRA = 13 weeks (7 grace weeks)
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Completion TRA – Reversion 2014
13 weeks of Completion TRA, payable over a 20 week period, for a participant that:
– Is actively participating in training expected to lead to an industry-recognized credential
– Has substantially met the performance benchmarks established as part of the training approved for the worker;
– Is expected to continue to make progress toward the completion of the training; and
– Will complete the training during that period of eligibility.
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Additional TRA Matrix
Program Total Weeks Payable
Payable Within (Weeks)
TRA Election
Earnings Disregard
Remedial / Prerequisite TRA (Weeks)
Completion TRA (Weeks)
2002 52 52 NO NO YES (26 R) NO
2009 78 91 YES YES YES (26 R/P) NO
2011 65 78 YES YES NO YES (13)
Reversion 2014 65 78 NO NO NO YES (13)
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Case Management and Related Services
“The purpose of these employment and case management services is to provide workers the necessary information and support for them to achieve sustainable reemployment.” – TEGL 22-08
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Case Management – Reversion 2014
Requires cooperating state agencies (CSAs) to, “make every reasonable effort,” to provide case management services through co-enrollment in ES, WIA, NEG or other partner programs
Assessments and labor market analysis required prior to approval of training
Co-enrollment with partner programs will be essential for participant success
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Job Search and Relocation
Location, location, location.
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Job Search – All Programs
To cover allowable costs related to travel outside of a participant’s commuting area to seek suitable employment Usually related to job interviews. Must be within the “United States”
Limited to the 50 states, DC & Puerto Rico
Must be pre-approved by the state
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Job Search Benefit Amount – Reversion 2014
Provided in accordance with the regulations of 20 CFR 617.49 90% of allowable costs up to $1,250 May included multiple trips Governed by Federal Travel Regulations at
41 CFR §301
No longer an optional provision
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Relocation – All Programs
To cover allowable costs to relocate a participant, their immediate family and their household goods to suitable employment outside of their commuting area Limited to the 50 states, DC & Puerto Rico Must be pre-approved by the state
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Relocation Benefit Amount – Reversion 2014
Provided in accordance with the regulations of 20 CFR 617.40 through 617.48 90% of allowable costs Lump sum payment up to $1,250 Governed by Federal Travel Regulations at
41 CFR §302
No longer an optional provision
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Health Coverage Tax Credit (HCTC)
Take two of these and call me in the morning.
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Health Coverage Tax Credit (HCTC)
HCTC expires effective December 31, 2013
No advance or other tax credit will be available for the 2014 tax year under HCTC
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Merit Staffing Requirements
Regulations are not statutes, statutes are not regulations.
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Merit Staffing Requirements – All Programs
20 CFR 618.890 [excerpt]– “The State must… engage only State
government personnel to perform Trade Adjustment Assistance (TAA)-funded functions undertaken to carry out the worker adjustment assistance provisions of the Trade Act of 1974…”
The merit staffing requirement applies to all Trade programs and is not impacted by program reversion
States may continue to outsource functions that are “not inherently governmental”
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Financial Management
Follow the money.
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Trade Funding Types
TAA = Training, job search, relocation, case management & related costs
TRA = Income support benefits A/RTAA = Wage insurance payments
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Funding for FY 2012, FY2013 and FY2014 through December 31, 2013
Consolidated Allocation$575M CAP
Case Management
AdminJob Search
&Relocation
Training
Conditions:
Up to 10% of Consolidated Allocation may be used for Administration
Not less than 5% of Consolidated Allocation must be used for Case Management
RTAA TRA
Uncapped Funds
Recapture and Financial Reporting
DOL may recapture funds from States with remaining un-obligated funding DOL may distribute recaptured funds to States in need of
additional funding
Trade-specific ETA-9130 will remain in use
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TAA Program, Case Management and AdminHow much can I spend for what?
Be mindful of funding source – must be an allowable activity under that funding stream to be charged to the grant
Citations: Trade Act 235(A)(1)(6); TEGL 22-08 Section G(2) and G(3); TEGL 10-11; 20 CFR 618
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Funding Status Issues / Recommended Practices
3 Year Money Trade funds are available for obligation and expenditure
for three years Different Law = Different Restrictions
You can only charge allowable costs to grants the activity is allowable under
Expiration and Closeout Shifting pots Must follow proper cost allocation Ideally, funds should be expended as First In, First Out
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Reversion 2014Funds Awarded After December 31, 2013
“Uncapped” Funds
ATAA TRA
Consolidated AllocationTraining Costs capped at $220m per year
Admin
TrainingJob
Search Relocation
Conditions (reverted program):Costs for case management and related costs for participants covered under certifications issued under Reversion 2014 may not be charged to TAA Program funds.
CaseManagement
ETA is still developing final guidance and interpretations of the allowability of costs under funding provided after January 1, 2014. Additional guidance will be provided in the near future.
Program Reporting RequirementsMean, and median, and mode! Oh, my!
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Trade Act Participant Report (TAPR)
There are no changes to the TAPR as a result of program reversion
www.doleta.gov/performance
Program Reversion Summary(Almost) Everything above in two handy slides!
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Reversion 2014 Program
No Trade funds available for case management or related costs for participants covered under Reversion 2014 certifications Costs will need to be covered under ES, WIA, NEG or other American
Job Center partner programs Only three training waivers available
Health, Enrollment Not Available and Training Not Available will continue to be the only allowable waivers
No Remedial/Prerequisite TRA available Completion TRA remains available 8/16 Week Deadline Re-established No Earnings Disregard for TRA No Election Provision for TRA Service sector workers no longer eligible for certification Shift in production certifications limited to certain countries ATAA requires group certification prior to individual eligibility
Trade Program Major Element Matrix
2002 2009 2011 Reversion 2014
Service Workers Eligible NO YES YES NO
Limited Countries for Shift in Production Cert. YES NO NO YESMaximum Length of Training (Weeks) 130 156 130 130
Part-time Training Allowable NO YES YES NO
Earnings Disregard & TRA Election Provisions NO YES YES NO
Number of Waiver Types Available 6 6 3 3
Training Enrollment Deadlines (Weeks) 8/16 26/26 26/26 8/16
Prerequisite/Remedial Training Allowable YES YES YES YES
Remedial TRA Available YES YES NO NO
Prerequisite TRA Available NO YES NO NO
Completion TRA Available NO NO YES YES
Group Eligibility Required for ATAA YES NO NO YES
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References and Contacts
Because knowing, is half the battle.
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Key References – Statutes and Regulations
Trade Act of 1974, as amended 19 USC 12
Public Law 93-618 (Trade Act of 1974)
Public Law 100-418 (aka: The 1988 Amendments)
Public Law 103-182 (NAFTA)
Public Law 106-113 (FY2000 consolidated appropriation)
Public Law 107-210 (TAA Reform Act of 2002)
Public Law 111-5 (Trade and Globalization Adjustment Assistant Act of 2009)
Public Law 112-40 (Trade Adjustment Assistance Extension Act of 2011)
20 CFR 617 (TAA/TRA Program Rules) 20 CFR 618.890 (Merit Staffing & Funding) 29 CFR 90 (Petition Process)
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Key Guidance - TEGLs
TEGL 11-02 (2002 Operating Instructions) Changes 1, 2 & 3
TEGL 02-03 (ATAA, RTAA reference) Changes 1, 2
TEGL 22-08 (2009 Operating Instructions) Change 1
TEGL 10-11 (2011 Operating Instructions) Changes 1, 2
TEGL 05-00 (Program Integration) TEGL 21-00 (Program Integration) TEGL 15-12 (Program Integration) TEGL 05-01 (Travel) TEGL 09-05 (Distance Learning) TEGL 13-05 (Remedial Training) TEGL 08-11 (Equitable Tolling)
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Key Guidance - UIPLs
UIPL 17-87 (Strike/Lockout) UIPL 25-87 (Bumped Workers) UIPL 29-91 (Incapacitated/Deceased) UIPL 31-00 (TRA TAG)
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Key Guidance - HCTC
UIPL 02-03 (Initial Guidance) UIPL 05-03 (HCTC) UIPL 33-03 (HCTC Q&A) UIPL 05-06 (HCTC 1099-G) UIPL 21-09 (HCTC) UIPL 12-11 (ARRA Reversion) TEGL 10-02 (Bridge/Gap-Filler Grants)
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Regional Office Contacts – Region 1
Timothy ThebergeRegional Trade Coordinator(Primary)[email protected]@timtheberge (Twitter)www.slideshare.net/ttheberge
Kate McLaughlinTrade Coordinator (Backup)[email protected]
John MurphyTRA [email protected]