Long-term unemployed Alabamians to see weekly benefit cuts due t - WSFA.com: News Weather and Sports for Montgomery, AL.

Long-term unemployed Alabamians to see weekly benefit cuts due to sequestration

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Alabama Department of Labor Commissioner Tom Surtees announced Thursday that Alabamians receiving Emergency Unemployment Compensation (EUC) benefits can expect to see a decrease in benefits by 12.8 percent for weeks from April 28 to September 30.

The cuts are due to mandated federal budget cuts, more commonly referred to as sequestration.

The ADOL estimates some 16,500 Alabamians are currently receiving the federal EUC benefits.

In most cases, the ADOL says, Alabamians who get regular unemployment compensation benefits, or those who have been unemployed for less than 26 weeks, will not be affected by the cuts because Alabama is responsible for paying claims up to that point with unemployment insurance taxes that are collected from employers. The federal government picks up the cost after 26 weeks.

The dollar amount of the reduction could vary for each person, since it is calculated based on the person's maximum benefit amount (MBA) and weekly benefit amount (WBA), both of which will have to be adjusted to reflect the cuts.

Surtees said taxes and other deductions will be applied to the new WBA. All EUC claimants will receive notification of their new monetary determinations by mail.

INFORMATION SOURCE: Alabama Department of Labor

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