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.
2. United States Department of Labor
Mission 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
2
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.
3
4. 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
4
5. All good things must come to an end.
2011 Amendments
Reversion Language
5
6. 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
6
7. Because who doesn’t love government forms?
Petition Process &
Worker Group Eligibility
7
8. Filing Petitions
Online at www.doleta.gov/tradeact
Fax to: (202) 693-3585
Mail to:
U.S. Department of Labor,
Office of Trade Adjustment Assistance
200 Constitution Avenue, NW, Room N-5428
Washington, DC 20210
NOTE: Deadline to file for coverage under 2011
provisions is 11:59pm EST, Tuesday, December 31,
2013
8
9. 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.
9
10. 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
10
11. 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
11
12. 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.
12
13. 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/tradetopics/trade-development/preference-programs/andean-trade-preference-actatpa)
– 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.
13
14. List of Specific Nations – Shift In Production
Caribbean Basin Economic Recovery Act
(http://www.ustr.gov/trade-topics/trade-development/preferenceprograms/caribbean-basin-initiative-cbi)
– Antigua and Barbuda, Aruba, The
Bahamas, Barbados, Belize, Dominica, Granada, Guya
na, 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
14
15. 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, Mala
wi, 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.
15
16. Worker Group Eligibility – Reversion 2014
Upstream (Secondary)
1. Firm that produces and supplies component parts
directly to another firm
2. 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
16
17. 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
17
18. 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
18
19. Petition Series
I. TA-W-69,999 and below
Amendment / Version
TAARA (2002 Amendments)
Guidance
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) –orTAAEA (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
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.
19
20. 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)
20
21. What’s old is new.
Alternative Trade Adjustment
Assistance – Filing and Benefits
21
22. 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
22
23. 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.
23
24. 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
24
25. 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.
25
26. 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
26
27. ATAA / RTAA Matrix
Trade
Program
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
27
28. It’s not just training, it’s an adventure.
Trade Adjustment Assistance
(Training)
28
29. 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
29
30. 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
30
33. 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.
33
34. “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
34
35. 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
NO
Federal 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
36. 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.
36
37. 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
37
38. 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)
38
39. 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.
39
40. Additional TRA Matrix
Program
Total
Weeks
Payable
Payable TRA
Within
Election
(Weeks)
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)
40
41. “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
Case Management
and Related Services
41
42. 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
42
44. 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
44
45. 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
45
46. 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
46
47. 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
47
48. Take two of these and call me in the morning.
Health Coverage Tax Credit
(HCTC)
48
49. 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
49
50. Regulations are not statutes, statutes are not regulations.
Merit Staffing Requirements
50
51. 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”
51
53. Trade Funding Types
TAA = Training, job
search, relocation, case management &
related costs
TRA = Income support benefits
A/RTAA = Wage insurance payments
53
54. Funding for FY 2012, FY2013 and FY2014 through
December 31, 2013
RTAA
TRA
Admin
Job Search
&
Relocation
Case
Management
Training
Uncapped Funds
Consolidated Allocation
$575M CAP
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
54
55. 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
55
56. TAA Program, Case Management and Admin
How 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 1011; 20 CFR 618
56
57. 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
57
58. Reversion 2014
Funds Awarded After December 31, 2013
ATAA
Training
TRA
Admin
Job
Search
Relocation
Case
Management
ETA is still developing final guidance and interpretations
of the allowability of costs under funding provided after
Consolidated Allocation
“Uncapped” Funds
January 1, 2014. Additional guidance will $220m per year in
Training Costs capped at be provided
the near future.
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.
58
59. Mean, and median, and mode! Oh, my!
Program Reporting Requirements
59
60. Trade Act Participant Report (TAPR)
There are no changes to the TAPR as a
result of program reversion
www.doleta.gov/performance
60
62. 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
62
63. 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
YES
Maximum 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
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
Number of Waiver Types Available
66. 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)
66