What Happens When Our 13 Weeks of PEUC Benefits Run Out?
Updated On: Nov 27, 2020
These web pages (linked below) combined, give a pretty good explanation of what we can expect after our 26 weeks of regular MN unemployment and 13 weeks of PEUC (Pandemic Emergency Unemployment Compensation for W-2 employees from the Cares Act) benefits run out. We already have federal laws in place for up to another 13 weeks of Extended Benefits (EB) based on each state's unemployment rate being too high. And then MN has another 7 weeks after that (same disclaimer, and with the PEUC extension, the 7 weeks may not be relevant this time around).
Notice this page says "Applicants currently receiving Pandemic Unemployment Assistance (PUA) are NOT eligible for either PEUC or EB." PUA is the Cares Act program that gave up to 39 weeks of unemployment benefits to 1099 contractors, whose 'employers' may have never paid a cent into the state's unemployment insurance fund.
Short version for those of us 'employees' on W-2s (our employers did pay into the state's unemployment fund):
Once your PEUC benefits run out:
You will not be asked to complete a separate application for the Federal-State Extended Benefits (EB) program. We will automatically review your account to determine if you qualify.
Keep requesting payments each week.
It may be up to 10 days before our review is complete.
If you are eligible for EB, you will receive an Amended Determination of Benefit Account in the mail. Any pending payments will be made (assuming you meet other eligibility requirements).
If you are not eligible for EB, we will send you an Amended Determination of Benefit Account in the mail online. That determination will include an explanation of why you are not eligible.
This article shows EB kicked in at 5.54% for 13 weeks starting May 3rd, 2020.
And this article says EB kicked in at 8% for 13 weeks starting August 2nd, 2020.
And this November 22nd article says EB (beginning May 3rd) continues based on MN's IUR (See Mandatory below). EB in WI were discontinued on November 7 based on their IUR. Note WI does not have the TUR option (See Mandatory below) which MN also uses.
Since 1970, Federal law has provided for payment of EB during periods of high and rising unemployment in a state.
TRIGGERS FOR EB—The following “triggers” are used to determine whether EB is payable in a particular state:
Mandatory -- A state must pay up to 13 weeks of EB if the insured unemployment rate (IUR) for the previous 13 weeks is at least 5% and is 120% of the average of the rates for the corresponding 13-week period in each of the 2 previous years. (The IUR is the ratio of the number of individuals collecting regular UI to the number of workers who could potentially collect UI if they lost their jobs.)
Optional -- A state may pay up to 13 weeks of EB if the IUR for the previous 13 weeks is at least 6%, regardless of the experience in the previous years.
Optional -- A state may pay up to 13 weeks of EB if the average total unemployment rate (TUR), seasonally adjusted, for the most recent 3 months is at least 6.5% and is 110% of the rate for the corresponding 3-month period in either or both of the 2 previous years. If such rate is at least 8.0% and is 110% of the rate for the corresponding 3-month period in either or both of the 2 previous years, the duration increases from 13 to 20 weeks. (The TUR is the ratio of the total number of all unemployed persons to the civilian labor force.)
Then, from the Center on Budget and Policy Priorities:
This article gives an extensive explanation of how both PEUC and PUA work and gives three examples of when benefits will run out for people who filed for UI before or after CoVid shut us down. For all union work, we will be represented in the first or third example.
And again, from the Center on Budget and Policy Priorities: