1 Trade Adjustment Assistance (TAA) Training Program Overview & Recent Changes Department of Economic Opportunity.

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Trade Adjustment Assistance (TAA) Training

Program Overview & Recent Changes

Department of Economic Opportunity

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PowerPoint Commentary

This presentation includes information on the Trade Act of 2002 as well as the Trade and Globalization Adjustment Assistance Act of 2009.

Information that runs parallel to both programs and where there are no changes is in black.

Where there have been changes under the new program, the information is in burgundy.

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Group Eligibility

The 2009 Amendment, in addition to production workers, now covers workers employed in the following:

Workers in firms that supply services Workers whose firm has shifted production to any

foreign country Workers in public agencies Workers whose firm produces component parts based

on increased imports of finished products Workers in firms that supply testing, packaging,

maintenances and transportation services to companies with TAA-certified workers

Workers whose firm is identified in an International Trade Commission “injury” determination listed in the Act.

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Petition FilingPetitions should be filed simultaneously with the United States Department of Labor (USDOL) and the State by:

A group of workers at the trade-affected company (minimum of three)

Company Official Union Official State Workforce Office One-Stop Operator/Partner Other Authorized Representative

The Petition format can be found in English and in Spanish at the following website: http://wdr.doleta.gov/directives/attach/tegl/TEGL23-08acc.pdf

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Petition Filing (cont’d)

In response to the filing of a petition:

The USDOL publishes a notice in the Federal Register and on its website and begins investigation

The State initiates rapid response activities and services

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Rapid Response Assistance

Rapid Response is a proactive approach designed to respond to layoffs and plant closings by quickly coordinating services and providing immediate aid to companies and their affected workers.

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Petition Certification

If the criteria are met, the USDOL issues a determination of eligibility (certification) within 40 days from the date the petition is submitted.

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Notifying Regional Workforce Boards (RWBs)

and Partners

Upon receiving a Certified Petition issued by the USDOL, the State TAA Coordinator sends information to partners: Executive Director in the administrative area where the primary layoff occurred, local TAA Coordinator, Rapid Response Coordinator, Department of Education - Workforce Education, Department of Economic Opportunity (DEO) Reemployment and Emergency Assistance Coordination Team (REACT) Unit, etc.

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Trade-Affected Worker Notification Process

A list of affected workers is provided to the DEO.

DEO sends a TAA/Trade Readjustment Allowance (TRA) Notification packet to affected workers which outlines the services and benefits.

Additionally, the packet includes information regarding a TAA Informational Meeting and local contact, as described on the next slide.

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TAA Informational Meeting

RWBs and partners should schedule a TAA Informational Meeting with the affected workers. This meeting provides the workers with information on the services and benefits they may be eligible to receive, local assessment procedures, information on training providers and approved occupational skills/vocational training programs, etc.

Note: The TAA Informational Meeting can be customized to meet the needs of the affected workers.

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TAA Services and Benefits for Workers

Rapid Response Assistance Employment and Case Management Services Reemployment Services Job Search Allowances Relocation Allowances Training Income Support – Trade Readjustment Allowances

(TRA) Waivers from Training

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TAA Services and Benefits for Workers (cont’d)

Alternative Trade Adjustment Assistance for older workers (ATAA) (Petitions filed prior to May 18, 2009)

Reemployment Trade Adjustment Assistance (RTAA) (Petitions filed on or after May 18, 2009)

Health Coverage Tax Credits (HCTC)

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Comparable Differences

A petition number allows one to distinguish between the trade programs for which a trade-affected worker is covered.

North American Free Trade Agreement (NAFTA) NAFTA/TAA Trade Act of 2002 Trade Act of 2009

For those petitions that were certified under the NAFTA, the petition number begins with a letter followed by a four digit number - i.e., N6245

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Comparable Differences (cont’d)

For workers covered under a certified NAFTA/TAA petition, the numbers range up to 49999.

For workers covered under the Trade Act of 2002 petition, the numbers range from 50000 to 69999.

For workers covered under the 2009 Amendment petition, the numbers range from 70000 and up.

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Guiding Principles

Rapid ReemploymentIncrease the focus on early intervention, upfront assessment, and reemployment services for adversely affected workers

Coordination with Workforce Investment Act (WIA) and/or Wagner-Peyser (W-P)Use One-Stop Career Centers as the main point of intake and delivery of benefits and services to participants

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Guiding Principles (Cont’d)

Fiscal IntegrityMaintain fiscal integrity and promote performance accountability

Data Integrity & Performance GoalsCommon measures, identical to WIA (Dislocated Worker)

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Enrollment in Training

Verify separation date from trade-affected employer and reason for separation

Verify Petition number that covers the affected worker

Establish 8 or 16 week deadline for enrollment in training for Petitions filed prior to May 18, 2009 (Petition number 69999 or lower) for TRA

Establish 26-week deadline for enrollment in training for Petitions filed on or after May 18, 2009 (Petition number 70000 or higher) for TRA

Verify that the trade-affected worker has filed for regular unemployment insurance

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Enrollment in Training (cont’d)

Conduct an initial assessment Complete a TAA Bona fide Application (TAA Module) Conduct a comprehensive assessment Provide Employment and Case Management services Apply the six program criteria for training eligibility Mandatory co-enrollment in WIA

Note: Under the 2009 Amendment, the assessment process can be provided by staff using TAA case management funds.

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Select appropriate training

Determine the length of time to complete the training program

Identify prerequisites that are required for the training program

Determine the total cost of training to be completed (tuition, fees, books, supplies, transportation and/or subsistence, etc.)

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Verify the date the individual will begin participating in training

Ensure that the approval date (enrollment in the TAA program) is within 30 days of the training begin date

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Six Program Criteria for Training

1. There is no suitable employment available to the worker

2. The worker would benefit from training

3. There is a reasonable expectation of employment following completion

4. Training is reasonably available to the worker

5. The worker is qualified to undertake and complete the training

6. Training is suitable and available at a reasonable cost

Note: There is no entitlement to receive training. All six (6) program criteria must be met before training is approved.

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Incumbent Worker (Pre-Separation) Training

Under the 2009 Amendment, an Adversely–Affected Incumbent Worker may receive TAA-funded training while still employed by the trade-affected firm. An Incumbent Worker means a worker who:

* Is a member of a group of certified workers

* Has not yet been totally separated from trade-affected employment

* Is threatened with total or partial separation

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Incumbent Worker (Pre-Separation) Training

The following limitations apply to training for incumbent workers:

* On-the-job training (OJT) is not allowable for incumbent workers

* Customized training may only be approved if the training is for a position other than the worker’s position in the adversely affected employment, i.e. only if the position is not similarly threatened by trade

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Full-Time/Part-Time Training

Participant must be in training on a full-time basis under the Trade Act of 2002.

The 2009 Amendment allows for participants to enroll in training part-time.

Note: Full-time & part-time are defined by the training institution.

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No Enrollment Deadlinefor Training

There is no time limit affecting approval for enrollment in TAA paid training. (Deadlines apply to the receipt of TRA payments.)

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Length of Training

Participation in an approved training program cannot exceed 104 weeks (or 130 weeks if remedial education is required).

For Petitions filed on or after May 18, 2009, the maximum length of training increases to 130 weeks (156 if remedial and/or prerequisite courses required).

Note: The 2009 Amendment allows for training to be approved for longer than the 156 week period, but only if the participants can establish up front that they can find the means to pay for the training (e.g., grants, loans or partner programs) as TAA will not pay for training beyond 156 weeks.

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Prerequisite/Remedial Education

Approved training can include prerequisite (under the 2009 Amendment) and remedial education concurrently with and/or followed by occupational skills training.

Remedial/prerequisite education cannot be approved as stand-alone training, but should be combined with occupational skills training and be identified in the Training Plan.

Note: Remedial English for Speakers of Other Languages (ESOL) can be approved as a stand-alone as long as the affected worker has marketable skills.

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Approval of Training

Types of Allowable Training

Occupational Skills Remedial & Prerequisite Training On-the-Job Training Customized Training Registered Apprenticeships (under the 2009 Amendment)

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Approval of Training (cont’d)

Training Vendors must be selected from the State Eligible Training Provider List (ETPL) or the locally approved list.

Occupational skills training must be identified on the state or local targeted occupations list.

Training may be approved even if it exceeds the maximum time allowed under TAA if the participant can establish the ability to afford the training after the TAA funding runs out.

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Reasonable Cost

TAA participants shall not be required to pay any portion of their approved training cost through personal funding sources during the TAA-funded period of training.

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Reasonable Cost (cont’d)

Under the 2009 Amendment, a State/Region may determine a maximum reasonable cost for training, but only with a mechanism for exceeding that maximum when that results in the most reasonable and cost effective way of returning the trade-affected worker to sustainable employment.

The State/Region must ensure that any Individual Training Account (ITA) caps developed are sufficient to cover the total costs of suitable training for high growth, demand, and green occupations in all localities in which those ITA caps apply.

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Disqualification

Participants can be disqualified if they cease training without justifiable cause; refuse to accept or continue training; or fail to make satisfactory progress in approved training.

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Waiver of Training Requirement

A Waiver of Training Requirement is issued to protect the worker’s receipt of TRA. It may be necessary to issue a Waiver of Training Requirement if training has not been approved.

If the worker has not been approved for training prior to the enrolled in training deadline, a waiver must be issued.

There is no need to issue a waiver of training requirement if the worker will not qualify for TRA.

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Waiver of Training Requirement (cont’d)

An adversely-affected worker may be granted a waiver of training requirement for one of the following reason(s):

1. Enrollment Unavailable

2. Training Unavailable

3. Recall

4. Marketable Skills

5. Retirement

6. Health

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A waiver can be issued for six months or longer. The waiver must be reviewed every 30 days to determine if the condition for issuing the waiver is still valid.

The 2009 Amendment allows for the initial waiver to be issued for three months, and renewed every 30 days.

Note: While the amendment allows for waivers to be reviewed only after three months, Regional Workforce Boards and their partners need to continue to review waivers monthly, until new guidance is issued.

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The first waiver issued and approved should be recorded as an activity in Employ Florida Marketplace (EFM) and thereafter should be recorded as a waiver entry every 30-day period. Should the reason or condition for the waiver change, the case manager will need to assign a different activity.

In addition, TAA case managers must send the Waiver of TAA Training Requirement (form DEO-566) to the Special Payment Unit.

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Issuing waivers for an extended period of time can prevent an individual from receiving additional TRA benefits when looking at the 210 day deadline, for Petitions filed prior to May 18, 2009.

The 210 day rule does not apply to Petitions filed on or after May 18, 2009.

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Employment & Case Management Services

The 2009 Amendment allows for TAA funds to pay for: Comprehensive Assessment Individual Employment Plan (IEP) Information on available training and how to apply

for training Information on how to apply for financial aid Short-term prevocational services Individual career counseling Labor Market Information Issuance of a waiver of training requirement

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Employment & Case Management Services

(cont’d)

If there are no available TAA funds to support case management, other allowable federal funds (WIA and/or Wagner-Peyser, etc.) must be used.

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What is Trade Readjustment Assistance (TRA)?

TRA is an extension of Unemployment Insurance (UI) benefits. A trade-affected worker who qualifies for UI may be eligible to receive income support after exhausting regular and/or extended/emergency UI benefits.

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TRAEligibility/Deadlines

The trade-affected worker must have 26 weeks of employment with the trade-affected employer at $30 or more per week in the 52 week period ending with the total or partial separation from the adversely affected employment.

The 2009 Amendment allows the trade-affected worker to begin receiving TRA benefits immediately upon certification of a petition if UI entitlement has been exhausted. (Prior to the amendment, there was a 60-day waiting period before a worker could receive TRA.)

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TRAEligibility/Deadlines (cont’d)

For Petitions filed prior to May 18, 2009, a worker’s eligibility for TRA benefits requires the individual to be enrolled in approved training or placed on a waiver of the training requirement within:

Eight (8) weeks after the date of Certification; or

Sixteen (16) weeks after the most recent qualifying separation

For Petitions filed on or after May 18, 2009, the individual must be enrolled in approved training or placed on a waiver of the training requirement within 26 weeks of the date of Certification or qualifying separation.

Under previous law, an application for training must be made within 210 days to qualify for Additional TRA. The 210-day deadline is eliminated under the 2009 Amendment.

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TRAEligibility/Deadlines (cont’d)

Florida may extend the deadline for enrollment in training 45 days for extenuating circumstances.

Under the 2009 Amendment, if the worker does not receive timely notification, the deadline for enrollment is 60 days from the date of notification.

A participant may receive TRA during an approved scheduled training break not to exceed 30 calendar days.

Note: Scheduled breaks take into account normal school days and run consecutive for each identified break published by the training institution.

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TRAMilitary Service

The 2009 Amendment adjusts periods of eligibility for trade-affected workers called or ordered to active duty in the Armed Forces, Army National Guard of the United States or Air National Guard of the United States for more than 30 days. (Restarts enrollment process.)

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Election of TRA or UI

In some situations a worker earns wages after the most recent separation from trade-affected employment, qualifying the worker for a subsequent benefit year of UI at a lower weekly benefit amount (WBA) than for the first benefit year. Based upon this, the higher WBA of the first benefit year must stop while the worker collects UI based upon the lower WBA of the second benefit year.

The 2009 Amendment resolves this dilemma by allowing the worker to elect to receive TRA instead of UI for any week where the worker meets two conditions:

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Election of TRA or UI (cont’d)

1. The worker is entitled to receive UI as a result of a new benefit year based in whole or in part upon part-time or short-term employment in which the worker engaged after the worker’s most recent total separation from the adversely affected employment; and

2. the worker is otherwise entitled to TRA.

Note: This interpretation is advantageous to the worker because it looks to a broader range of wages upon which the new benefit year may be based in order to allow the worker the election.

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UI and TRA Weekly Benefit Amounts (WBA)

Currently, the maximum WBA in Florida is $275 per week. If the trade-affected worker qualifies for TRA, the same weekly benefit received for UI is payable to the worker.

The Trade Act requires that earned wages be deducted from the weekly benefit amount (WBA). If earned wages exceed the WBA, the individual receives no TRA for that period.

The 2009 Amendment requires that when the individual is enrolled in full-time training and is also working part-time, earnings from work that are equal to or less than the most recent WBA will not be deducted from the WBA.

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TRA Payable Weeks

Extended/emergency benefits will be deducted from TRA.

Under the 2002 Trade Act

Regular Unemployment Benefits

26 weeks

Basic TRA Benefits

26 weeks

Additional TRA Benefits

52 weeks

Total

104 weeks

Remedial TRA

26 weeks

Total with Remedial

130 weeks

Under the 2009 Amendment

Regular Unemployment Benefits

26 weeks

Basic TRA Benefits

26 weeks

Additional TRA Benefits

78 weeks

Total

130 weeks

Prerequisite/Remedial TRA

26 weeks

Total with Prerequisite/Remedial

156 weeks

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Job Search Allowance

A job search allowance may be granted to an adversely affected worker to assist the worker in securing a job outside of the commuting area, but within the United States. The worker must meet specific eligibility requirements.

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Job Search AllowanceCriteria

A worker may receive Job Search Allowances if the following conditions are met:

1. The worker is covered under a certified petition.

2. The worker has been totally separated from the trade-affected employer.

3. The worker has an active job seeker registration on file at the One-Stop Career Center (Wagner-Peyser).

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Job Search AllowanceCriteria (cont’d)

4. The worker has a TAA application in the EFM system.

5. The worker has no reasonable expectations of securing employment within the commuting distance.

6. There must be an existing job opening for which the worker is being interviewed. The worker must provide documentation of actual date of interview, time, and position title. One-Stop Career Center staff must confirm the information with the employer.

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Job Search AllowanceCriteria (cont’d)

7. A Job Search Application (Request for Job Search Allowance) must be filed prior to interview.

8. The application must be filed by the 365th day after the date of the certification in which the worker is covered, or the 365th day after the date of the worker’s last total separation, whichever is later, or the 182nd day after the concluding date of the approved training.

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Job Search AllowanceForms

The Request for Job Search Allowance (DEO 861) must be signed, dated and completed prior to the interview.

After the interview, the Certification of Suitable Employment (DEO MA-861-A) must be completed by One-Stop Career Center staff and must include receipts with amounts expended, including daily mileage, for the job search.

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Job Search AllowanceReimbursable Amount

Job Search Allowance For Petitions filed before May 18, 2009, the

allowance is up to 90% of the total allowable costs of transportation, lodging, and meals. For Petitions filed on or after May 18, 2009, the allowance increases to 100% of total allowable costs.

The total Job Search Allowance must not exceed $1,250 regardless of the number of job searches for Petitions filed before May 18, 2009. For Petitions filed on or after May 18, 2009, the maximum total Allowance is $1,500.

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Travel:

Cost is not to exceed the lesser of (1) the actual round trip cost by reasonable public transportation or (2) cost per mile at the prevailing federal mileage rate from the worker’s residence to the area of job search and return to residence (round trip).

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(cont’d)

Lodging and Meals:Allowable costs for lodging and meals will not exceed the lesser of (1) actual cost to the worker of lodging and meals while engaged in the job search or (2) 50% of the prevailing federal per diem allowance rate for the locality in which the job search is conducted.

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Relocation Allowances

A relocation allowance may be granted to an adversely affected worker to assist the worker in securing a job outside of the commuting area, but within the United States. The worker must meet specific eligibility requirements.

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Relocation AllowancesCriteria

A worker may be approved for a relocation allowance if the following conditions are met:

1. The worker is covered under a certified petition.

2. The worker is totally separated from adversely affected employment at the time relocation commences.

3. The worker must have an active job seeker registration on file at the One-Stop Career Center (Wagner-Peyser).

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Relocation AllowancesCriteria (cont’d)

4. The One-Stop Career Center must determine that the worker has no reasonable expectation of securing suitable employment within the commuting area.

5. The worker has obtained suitable employment of long-term duration, or a bona fide offer of such in the area of intended relocation.

6. An application (Request for Relocation Allowances) must be filed by the 425th day after the later of the date of certification or the date of the worker’s last total separation.

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Relocation AllowancesCriteria (cont’d)

7. The local TAA Coordinator is to review the application for accuracy and completeness.

8. For the worker to receive relocation allowances, the relocation must occur within 182 days from the date of application or the end of training.

9. A relocation allowance will not be granted to more than one member of a family.

10. A relocation allowance may be granted to a worker only once under a certification.

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Relocation AllowanceForms

The Request for Relocation Allowances (DEO-860) must be signed, dated and completed prior to the relocation.

The Certification of Suitable Employment (DEO MA-861-A) must be completed by One-Stop Career Center staff and must include receipts with amounts expended for the relocation.

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Relocation AllowancesAllowable Costs

The amount of a relocation allowance includes:1. A lump sum payment equivalent to three times the

worker’s average weekly wage that the individual was making from the trade-affected employer not to exceed $1,250; and

2. 90% of the total allowable costs for transportation, lodging, meals, moving and, if necessary, temporary storage.

Note: For Petitions filed on or after May 18, 2009, the limits are raised to $1,500 and 100% reimbursement.

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Agent/Liable State Coordination

The liable state is the state where wages are paid for employment.

The liable state is responsible for making all determinations, redeterminations, and decisions on appeals on claims for program benefits (UI, TRA, Job Search, Relocation Allowances and ATAA/RTAA.)

If any individual relocates to another state, UI, TRA, and ATAA/RTAA benefits remain payable from the liable state.

Waivers and revocations issued by the agent state must be approved and processed by the liable state.

Training must also be approved by the liable state.

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Agent/Liable State Coordination

The agent state is any state other than the liable state.

The agent state’s responsibility is to pay for the cost of any approved training, including subsistence and transportation costs, after such training and costs have been approved by the liable state.

Once an individual has officially relocated, the agent state may also pay for approved job search and relocation allowances.

Additionally, it is the agent state’s responsibility to cooperate with the liable state by providing information needed to issue determinations, redeterminations and decisions on appeals, including training.

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Out-of-State Coordination

In the event an individual has relocated from another state, case managers must: Verify the worker’s name and social security number Determine if the individual is covered under a certified

petition Determine the “Enrolled in training” deadline Verify the worker’s official termination date from the trade-

affected employer Determine if the worker is currently on a waiver of training

requirement Determine if the worker started training before relocating to

Florida (agent state)

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Out-of-State Coordination (cont’d)

For petitions approved prior to May 18, 2009, find out the worker’s 210 day deadline.

Note: If an out-of-state trade-affected worker meets the six program criteria and qualifies for training, the training must be approved by the liable state prior to local approval. The Request by Worker for Approval of Training Allowances form (DEO ETA 858), along with a training plan, should be submitted to the liable state as the initial documents.

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Alternative Trade Adjustment Assistance

(ATAA)

ATAA is a component under the Trade Act of 2002 that provides a wage subsidy to older workers who become reemployed within 26 weeks of separation from the trade-affected company. ATAA applies only to Petitions filed before May 18, 2009.

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(ATAA) (cont’d)Eligibility Criteria (Must meet all criteria listed):

1. At least age 50 at the time of reemployment

2. Obtain reemployment by the last day of the 26th week after the worker’s qualifying separation from the trade-affected employer

3. Current reemployment wages must be less than those earned from the trade-affected employer

4. Must not be expected to earn more than $50,000 annually in gross wages (excluding overtime pay) from the current reemployment

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(ATAA) – (cont’d)

5. Employed full-time as defined by state law (32 hours per week)

6. Cannot return to work for the trade-affected employer from which the worker separated

7. Must establish a valid Florida Reemployment Assistance (RA) claim

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(ATAA) – (cont’d)

Wage Subsidy Payment Limit:

50% of the difference between reemployment wage and wage at the time of separation

Up to $10,000 over a maximum period of two years

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Reemployment Trade Adjustment Assistance

(RTAA)

RTAA provides a wage supplement to older workers who become reemployed. RTAA replaces ATAA and applies only to Petitions filed under the 2009 Amendment on or after May 18, 2009.

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(RTAA) – (cont’d)

Eligibility Criteria (Must meet all criteria listed):

1. Is a member of a TAA-certified group based on a Petition filed on or after May 18, 2009

2. Is at least 50 years of age at time of reemployment

3. Is employed on a full-time basis (32 hours per week); OR is employed at least 20 hours per week while enrolled in full-time training

4. Is not employed at the firm from which the worker was separated

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5. Current reemployment wages must be less than those earned from the trade-affected employer

6. Must not be expected to earn more than $55,000 annually in gross wages (excluding overtime pay) from the current reemployment

7. Must establish a valid Florida RA claim

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Eligibility Period For RTAA Payments:

Worker who has not received TRA, the earlier of• Up to two years from date on which worker exhausts all

rights to UI; or• Up to two years from the date on which the worker was

reemployed

Worker who received TRA• 104 weeks beginning on the date on which the worker

was reemployed• Minus the total number of weeks for which the worker

received TRA

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Wage Supplement Payment Limit:

50% of the difference between reemployment wage and wage at the time of separation

Up to $12,000 over a maximum period of two years

For part-time work coupled with full-time training, the percentage is modified by the number of hours worked. (For half-time work, e.g., the payment will be 25% of the difference.)

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Workers who receive RTAA may also receive regular TAA benefits and services: employment and case management services, training, relocation, HCTC, and job search allowances.

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EFM – TAA ModuleData Entry Instructions

Put it where it Counts

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EFM Data Entry InstructionsThe Employ Florida Marketplace (EFM) management information system is used to track participant information. Through EFM, the state is able to report to the USDOL information required for each workforce program (WP, WIA and TAA).

Case managers must enter information in EFM for TAA participants. Information entered in EFM should mirror documentation in your manual file. This will allow for successful data validation of records and monitoring of participant files.

Case notes should be recorded in the module to support eligibility, waivers, visits, progress reports, attendance, etc.

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EFM Data Entry Instructions (cont’d)

Those trade-affected workers who are covered under a certified trade-act petition must have the following reflected in the TAA Module:

TAA Application TAA created participation, if the worker qualifies for a

waiver, approved training, job search, and/or relocation allowances

Note: Prior to assigning a training activity, the case manager will need to create a TAA Approve Training Application in EFM (Applying the six program criteria).

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EFM Data Entry Instructions (cont’d)

Waiver

A waiver activity should be assigned with an actual begin date and a projected end date.

Each 30-day review should be recorded under a waiver entry.

The Waiver of TAA Training Requirement must be submitted to the Trade Program Unit each month.

Copies of waivers must be maintained in the participant’s file.

Worker must be enrolled in Wagner-Peyser, and be engaged in an active job search.

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EFM Data Entry Instructions (cont’d) Approve Training

All “approve training” activities must be entered in the participant’s record.

Create activity record with actual begin and projected end dates.

Allow the activity to remain open until the actual end date.

Scheduled breaks should be recorded in the Activity screen.

Worker must be enrolled in WP and WIA. The proper funding sources must be identified for core,

intensive and training activities (for example, WIA core and intensive; TAA training).

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EFM Data Entry Instructions

RWBs are encouraged to use TAA funds for training activities for TAA participants.

If funds are not available, an RWB can request supplemental funds.

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Health Coverage Tax Credit (HCTC)

The HCTC is a federal tax credit that pays 80% of qualified health insurance premiums for eligible individuals and their family members.

HCTC is administered by the Internal Revenue Service (IRS).

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Health Coverage Tax Credit (HCTC)

The following individuals may be eligible for the HCTC:1. Individuals who meet requirements under the TAA

for workers program;2. Individuals who are eligible to receive or those

receiving TRA benefits; 3. Individuals who receive payments under the ATAA

or RTAA programs; or 4. Individuals who are age 55 or older and receive a

benefit from the Pension Benefit Guaranty Corporation (PBGC), including lump-sum payments paid after August 5, 2002.

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Health Coverage Tax Credit (HCTC) – (cont’d)

Qualified Health Plans

Individuals must be enrolled in a qualified health plan to receive the advance or end of the year tax credit.

Automatic Options:

COBRA or Mini-COBRA Spousal Coverage if the employer

subsidizes less than 50% of the premium. (The individual can only receive a tax credit at the end of the year.)

Non-group/Individual Health Plans (The affected worker must have the coverage at least 30 days prior to separation from the trade-affected employer.)

State-Arranged Plan:

State Qualified Health Plan (Blue Cross Blue Shield)

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General Requirements for Continued HCTC Benefits

An individual must: Be a TAA recipient or qualified family member; Be covered by a qualified health plan; Not be claimed as a dependent on another’s tax return; Not be enrolled in Medicare; Not be enrolled in the federal employee health benefit plan,

Medicaid or the state children’s health insurance program; Not be imprisoned by a federal, state or local authority; Not be entitled to health coverage through U.S. military

health systems (CHAMPUS-TRICARE)

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Information for Qualified Family Members

Qualified family members may continue to be eligible for the HCTC if the original HCTC candidate (a PBGC payee or the recipient of one of the TAA programs) enrolls in Medicare, dies, or divorces. Qualified family members must be spouses or dependents at the time of the event, and meet all HCTC general requirements and have or get a qualified health plan.

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Insurance Timelines

If an individual has a gap in health insurance coverage, the individual may find that certain forms of coverage are not available to them, and that pre-existing conditions may be excluded from coverage.

To preserve their rights and get the best possible health insurance benefits, trade-affected workers should make sure that they preserve their rights by:

Enrolling in COBRA or Mini-COBRA within the deadline expressed by the employer (60 days), or

Enrolling in a State-qualified plan within 62 days from the end of their previous coverage

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How to Receive HCTC Benefits

To receive HCTC benefits, TAA-eligible individuals need to complete and mail the Registration Form to the HCTC Program.

Upon enrollment in HCTC, the individual will be eligible to receive the tax credit through one of two options:

1. Monthly advance of 80% of the insurance premium. (Because of delays in the start-up of the HCTC Program, individuals must pay 100% of their health insurance premiums until they are enrolled in the program.)

2. Year-end tax credit claimed on the individual’s tax return by filing IRS Form 8885.

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Monitoring

The TAA Program will monitor processes and participant records to ensure that One-Stop Career Centers and partners are in compliance with federal regulations and state and local guidelines.

Monitoring includes: Intake and eligibility of clients served under TAA Services and benefits received by TAA clients Appropriateness of training Appropriate use of waivers Operational procedures and practices

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Data Validation

The USDOL introduced this initiative in 2003 to verify the accuracy of performance reporting data.

The purpose of data validation is to ensure the following:

Data Integrity Uniformity Coordination Acceptable Efficiency Rate

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Data Validation (cont’d)

Benefits

Develop reliable and accurate program data Focus on management and accountability Provide for continuous improvement Create an improved basis for determining incentives and

sanctions

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Data Validation (cont’d)

Programs required to be validated

Trade Adjustment Assistance Workforce Investment Act Wagner-Peyser Employment Services Migrant and Seasonal Farm Workers Native American Employment and Training Senior Community Services Employment Unemployment Insurance Benefits and Tax

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TAA-Related WebsitesUnited States Department of Labor – Employment & Training Administration - http://www.doleta.gov/tradeact/(Guidance for the 2009 Amendment can be found in TEGL 22-08.)

Florida Department of Economic Opportunity -http://www.floridajobs.org/workforce/TAA_home.html

Internal Revenue Service – HCTC Site http://www.irs.gov/individuals/article/0,,id=109915,00.html

Florida Apprenticeship Programhttp://www.fldoe.org/workforce/apprenticeship/benefits.asp

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Contact Information

Trade Program Unit1-800-342-3450

1 Trade Adjustment Assistance (TAA) Training Program Overview & Recent Changes Department of Economic Opportunity.

Documents

services workers

taacertified workers

production workers

group of workers

workers wi

list of affected workers

public agencies workers

foreign country workers