Quote:
Originally Posted by MotherLeeds13
I am the only one who finds it odd that a cash-strapped state like NJ would suddenly "release" money for tiers when the FEDERAL legislation allowing it has not even passed?
This isn't kosher. Perhaps the rep you spoke to was referring to releasing EB? The EB trigger is built in NJ law and cannot be rescinded unless another law to abolish it passes. It's well documented on this forum that employees at the NJ unemployment offices are not the brightest bulbs on the tree. They get their info screwed up quite frequently.
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The NJ reps are reading from a script which was drafted so as not to have to explain all the ugly details of the recent screw-ups with NJ UI payments.
Fundamentals has accurately reported what reps are telling claimants in NJ.
For those who are interested, here is the sad NJ story:
(1) Under NJ law, when a claimant has exhausted all federal unemployment benefits available to him/her, he/she may be eligible for EB.
(2) EB is triggered by NJ's three-month average unemployment rate. At this time, the state has triggered High EB -- an additional 20 weeks of benefits. Under the state law, the federal government pays 50% of the cost of those benefits; NJ must pay the other 50%.
(3) After the last eligibility cut-off dates passed for the EUC Tiers, as people exhausted their regular benefits or an EUC Tier, under state law NJ should have started paying EB to those who qualified for it.
(4) Rather than pay EB, someone had the bright idea to "freeze" payments to those exhausting regular benefits or an EUC Tier. The rationale was: Why pay EB immediately (which will cost NJ 50% of the benefits)? If we just wait a few weeks, the Tiers will be reinstated, retroactive payments will be made, and the federal government will pay the entire cost.
(5) Unfortunately, that did not happen on the timetable that NJ expected. So the longer they kept accounts frozen and didn't make the new EB payments, the longer they were in violation of the state law.
(6) The immediate solution? "Unfreeze" those accounts ASAP. If NJ unfreezes the accounts and makes "Tier" payments, those retroactive payments will be reimbursed 100% by the federal government. However, if they designate those payments as "early EB," the federal government may not reimburse NJ for the 50% the state has to pay for EB at this time.
Whether or not the new rationale works for NJ with funding from the federal government, only time will tell. In any event, the NJ accounts have been "unfrozen," people are starting to receive their retroactive payments -- and however NJ categorizes those payments for the federal government, that will not affect the recipients.