Trade 101 - A Summary of the Trade Adjustment Assistance for Workers Program

Employment and Training AdministrationRegion 1 (#ETARegion1)

Trade Adjustment Assistance for Workers - 101

November 2013v.1.75

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United States Department of LaborMission 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

http://www.dol.gov/100

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Materials Overview

Alphabet Soup

A Brief History of Trade Act Legislation

Trade Adjustment Assistance Programs

Trade Adjustment Assistance for Workers

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Alphabet Soup

There’s an acronym for that.

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Alphabet SoupSpeaking the Language of Trade

ATAA = Alternative Trade Adjustment Assistance

CSA = Cooperating State Agency

DEV = Data Element Validation

DOL = U.S. Department of Labor

DW = WIA Dislocated Worker program

ES = Employment Service

ETA = Employment & Training Administration

GSA = Governor Secretary Agreement

HCTC = Health Coverage Tax Credit

NAICS = North American Industrial Classification System

NEG = National Emergency Grant

OTAA = Office of Trade Adjustment Assistance

RR = Rapid Response

RTAA = Reemployment Trade Adjustment Assistance

TAA = Trade Adjustment Assistance for Workers

TAPR = Trade Act Participant Report

TEGL = Training and Employment Guidance Letter

TEN = Training and Employment Notice

TRA = Trade Readjustment Assistance

UI = Unemployment Insurance

UIPL = Unemployment Insurance Program Letter

ITC = International Trade Commission

WIA = Workforce Investment Act

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A Brief History of Trade

It’s always best to begin at the beginning.

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Trade Act Origins & Major Legislation

1962 – Trade Expansion Act of 1962– Provided TRA payments in addition to UI

1974 – Trade Act of 1974– Established a training benefit

1988 – Omnibus Trade and Competitiveness Act of

1988– Established TAA training as a requirement for receipt of

TRA

1993 – North American Free Trade Agreement

(NAFTA)– Established the precedent for enrollment deadlines

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2002 – Trade Reform Act of 2002– Established HCTC– Established ATAA as a demonstration project– Expanded applicability of enrollment deadlines– Expanded eligibility to secondarily impacted worker groups– Provided additional weeks of TRA for Remedial training– Up to 130 weeks of approved training

2009 – Trade and Globalization Adjustment Assistance

Act of 2009– Expanded eligibility to service sector workers and public sector

workers– Extended weeks of Additional TRA– Established RTAA as a permanent program and expanded benefits– Provided additional weeks of TRA for prerequisite courses– Up to 156 weeks of approved training

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2011 – Trade Adjustment Assistance Extension

Act of 2011– Ended eligibility for public-sector worker groups– Removed Remedial and Prerequisite TRA– Established Completion TRA– Maximum length of approvable training set at 130 weeks– Reduced benefit levels under RTAA– Established the same HCTC rate for all eligible Trade

participants– Set January 1, 2014 as the expiration date of HCTC– Reduced types of training waivers for TRA eligibility

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Trade Adjustment Assistance Programs

And you get a Trade program! And you get a Trade program!

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Trade Adjustment Assistance…

for Firms (http://www.taacenters.org/)– Administered by the Economic Development Administration

(EDA)• Provided through a series of non-profit grantees

– Provides matching funds to employers to increase efficiency,

expand exporting capacity and increase overall competitiveness

for Farmers (and Fishermen)http://www.taaforfarmers.org/– Administered by the United States Department of Agriculture

(USDA)• Provided through a series of non-profit grantees

– Technical assistance and cash benefits to producers of certified

commodities

http://www.taacenters.org/

http://www.taacenters.org/

http://www.taaforfarmers.org/

http://www.taaforfarmers.org/

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for Communities– Administered by EDA

• One-time awards to communities impacted by Trade • Based on certifications under TAA for Workers

– Administered by the United States Department

of Labor (http://www.doleta.gov/taaccct/)• Capacity-building grants to the community and

technical college system (FY2011-FY2014)• Known as TAACCCT grants (Trade Adjustment

Assistance Community College and Career Training)

http://www.doleta.gov/taaccct/

http://www.doleta.gov/taaccct/

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for Workers– Helps workers who have lost their jobs as a result of foreign

trade. The program offers a variety of benefits and services to eligible workers, including:

job training job search and relocation allowances income support (TRA) a tax credit to help pay the costs of health

insurance (HCTC) a wage supplement to certain reemployed trade-

affected workers 50 years of age and older (ATAA/RTAA)

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Trade Adjustment Assistance for Workers

Heigh ho, heigh ho, it’s into the weeds we go!

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TAA for Workers Materials Overview

• Petition Process / Worker Group Eligibility• Training• TRA

– General Qualifications– Basic TRA, Additional TRA, Remedial TRA– Waivers – Completion TRA

• Enrollment Deadlines– Federal Good Cause & Equitable Tolling

• Case Management and Related Services• RTAA (and ATAA)• Job Search and Relocation• Financial Management of the Trade Program• Program Reporting Requirements and Data Validation• Sunset Provisions and Program Reversion• References, Guidance and Contacts

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Petition Process &Worker Group Eligibility

Because who doesn’t love government forms?

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Filing Petitions

Online at www.doleta.gov/tradeact

Fax to: (202) 693-3585

Mail to:

U.S. Department of Labor, Office of Trade Adjustment Assistance200 Constitution Avenue, NW, Room N-5428Washington, DC 20210

http://www.doleta.gov/tradeact

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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.

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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

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Appealing Petition Denials

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)

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Worker Group Eligibility (2002)

Primary - Workers in firms that produce articles, based on:

1. increased imports of like or directly competitive articles; or,2. shifts in production of articles to certain foreign countries; or,

• Country is party to a free trade agreement with the US• Countries include in: Andean Trade Preference Act, African

Growth and Opportunity Act, Caribbean Basin Economic Recovery Act

– Does not include China, India, or most of Asia or Europe

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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

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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

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Worker Group Eligibility (2009/2011)

Affected Workers may include workers in firms that produce articles and workers in service sector firms, based on:

1. increased imports of like or directly competitive articles or services; or,2. increased imports of a finished article for which the workers’ firm produces

component parts or supplies services; or,3. increased imports of articles directly incorporating foreign components that

are like or directly competitive with the component parts made by U.S. workers; or,

4. shifts in production of articles or supply of services to any foreign country; or,

5. workers in firms that supply component parts or services to firms with TAA-certified workers or perform additional, value-added production processes to firms with TAA-certified workers; or,

6. workers in firms identified in International Trade Commission “injury” determinations

NOTE: Certifications under 2011 are limited to the private sector

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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

Reverted 2002 YES NO NO Limited Countries

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Training

“I was training to be an electrician. I suppose I got wired the wrong way round somewhere along the line.” - Elvis Presley

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Mission of Training

Trade’s Axiom:

The least amount of training at the lowest reasonable cost in the shortest amount of time to obtain the skills, credentials, resources, and support necessary to become reemployed.

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6 Criteria for Approval of Training

1. There is no suitable employment (which may include technical and professional employment) available for the adversely affected worker.

2. The worker would benefit from appropriate training.

3. There is a reasonable expectation of employment following completion of such training.

4. Training approved by the Secretary is reasonably available to the worker from either governmental agencies or private sources.

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

6. Such training is suitable for the worker and available at a reasonable cost.

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Suitable Employment

Suitable employment is defined as work of a substantially equal or higher skill level than their past adversely affected employment and with a wage of at least 80% of the worker’s prior average weekly wage.

• A job, known to be short duration or temporary in nature, is not considered suitable

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Exclusions

20 CFR 617.23(d)(3)

• Exclusions. In determining suitable training the State agency shall exclude certain occupations, where:

– (i) Lack of employment opportunities exist as substantiated by job orders and other pertinent labor market data; or

– (ii) The occupation provides no reasonable expectation of permanent employment.

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Training Prior to Separation (2009/2011)

Training may be approved before separation for adversely affected incumbent workers. The incumbent worker must be someone who:

1. Is a member of a group of workers that has been certified as eligible to apply for TAA benefits

2. Has not been totally or partially separated from employment, and

3. Is determined to be individually threatened with total or partial separation (will be monitored via case management).

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One Training Per Certification

A worker may only be approved for one training program per certification.

Therefore, a training program begun prior to separation counts as that one training program, and the training plan should be designed to meet the long-term needs of the worker.

A training plan may be modified

See TEGL 10-11, Change 2 Q8

Note: A training program may be comprised of several training components (i.e.: remedial training first, then vocational training, may also combine classroom and OJT)

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Training - Guidance

There is no entitlement under Trade to receive training.– All 6 criteria must be met before training can be approved

There is no entitlement to receive the maximum number of weeks of training.

When approving training, CSAs must look at the requirements for the occupation as found on O*NET and actual job postings– Additional add-ons and other certifications not listed in job

postings are not always appropriate

• Training may be approved for a period longer that an individuals eligibility for TRA– Worker must demonstrate a financial ability to complete the

training.

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Full-Time vs Part-Time Training

2002

– 617.22 (f)(4)

• Full-time training. Individuals in TAA approved training shall attend training full time, and when other training is combined with OJT attendance at both shall be not less than full-time. The hours in a day and days in a week of attendance in training shall be full-time in accordance with established hours and days of training of the training provider.

2009 / 2011

– Allows for part-time training

• TRA is not payable if the individual participants in part-time TAA-approved training

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Length of Training

2002

– The maximum length of Trade-approved training is 130 weeks

2009


2011


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Breaks in Training

2002 / 2009 / 2011– Up to 30 days allowed– Additional TRA may not be paid for breaks longer

than 30 days

Training plans should seek to avoid breaks Unscheduled breaks are not the same thing Excludes weekends and holidays unless

training would normally have occurred on

those days

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Training Matrix

Program Maximum Weeks of Approved Training

Part-Time Training Allowable

Breaks in Training (Days)

Remedial Training / Prerequisite Courses

Online Training

2002 130 NO 30 YES YES

2009 156 YES 30 YES YES

2011 130 YES 30 YES YES

Reverted 2002 130 NO 30 YES YES

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Training-Related Costs

Allowable

– All tuition & fees;

– Books, uniforms, supplies, equipment

– Transportation costs (mileage, mass transit, parking)

– Laptops and software 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

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Trade Readjustment Assistance (TRA) and Training Waivers

“…those injured by that competition should not be required to bear the full brunt of the impact.” - JFK

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Qualifying TRA Requirements

An individual must: Be an adversely affected worker; Have a first qualifying separation occur on or after the

impact date of the certification & before the expiration of the 2-year period beginning on the date of certification;

Have 26 weeks of employment at wages of $30 or more a week in adversely affected employment with a single firm or subdivision of the firm in a 52-week period ending with the week of the first qualifying separation; and,

The individual must have been entitled to (or would have been entitled had they applied) UI for a week within the benefit period of the individual's first qualifying separation

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Qualifying TRA requirements (cont.)

Have exhausted all rights to UI to which the individual was entitled:

(1) Accept any offer of suitable work & apply for any suitable work the individual is referred by a State, &

(2) actively engage in seeking work & provide tangible evidence of such efforts, & (3) register for work and be referred by the state agency to suitable work, [until they are enrolled in training]AND

(1) be enrolled in or participating in a TAA approved training program approved by the state agency, or

(2) have completed a TAA approved training program approved by State agency after a total or partial separation from adversely affected employment (3) have received from the state agency a written statement waiving the TAA participation-in-training requirement [617.11(a)(2)(i)–(iv)]

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Basic TRA

Payable only upon exhaustion of UI benefits

52 weeks minus UI Including all state and Federal benefits

Participant must be in full-time training or on a waiver from training

Participant must meet the enrollment deadline 8/16 for 2002

26/26 for 2009/2011

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Additional TRA

A worker can receive the additional weeks of TRA only if they are participating in approved training (including allotted breaks in training)

In order to receive additional benefits, workers must have met the enrollment deadline

2002 - If an individual becomes entitled to UI after commencing receipt of TRA, then they must exhaust their UI; their eligibility period continues to run

2009/2011 - If an individual becomes entitled to UI after commencing receipt of TRA, they may elect to remain on TRA instead of having to exhaust their UI;

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Remedial TRA (2002/2009)

Benefit available for those who need remedial education to facilitate reemployment

Leads to employment or training

Remedial education can occur concurrently with other training

Example: Basic math & writing skills, English as a second language, GED, etc.

Up to 26 weeks of Remedial TRA payments may be provided

TRA payments for remedial education weeks are made at the end of the “regular” TRA period

Brings total available weeks of benefits to 130/156

See TEGL 13-05 for additional guidance on remedial training

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Remedial / Prerequisite TRA (2009)

Benefit available for those who need remedial education to facilitate reemployment or prerequisite courses needed before occupational training can begin

Leads to employment or training

Remedial education can occur concurrently with other training

Remedial Example: Basic math & writing skills, English as a second language, GED, etc.

Prerequisite Example: English 101 before English 201, etc.

Up to 26 weeks of prerequisite / remedial TRA payments may be provided

TRA payments for remedial education weeks are made at the end of the “regular” TRA period

Brings total available weeks of benefits to 156

Remedial / Prerequisite TRA (2011)

The 2011 amendments eliminated Remedial TRA as a “category” of TRA, although remedial and prerequisite training should continue to be part of an approved training plan where appropriate

However, the inclusion of remedial and prerequisite training in a worker’s training plan will no longer result in the worker’s eligibility for up to 26 additional weeks of TRA

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TRA and Training Waivers2011

52 w

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I rece

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)

65 w

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78 o

f Additio

nal T

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Com

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may a

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Th

ree Tra

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aiv

ers

2002 52 weeks of Basic TRA

(reduced by any UI received)

52 weeks in 52 of Additional TRA

Remedial TRA may account for 26 weeks

Six Training Waivers

2009 52 weeks of Basic

TRA (reduced by any UI received)

78 weeks in 91 of Additional TRA

Remedial or Prerequisite TRA may account for 26 weeks

Six Training Waivers

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Criteria for Waiving Training Requirement

2011 TAA Program

Three Criteria

Health Condition

Enrollment in Training is Not Available

Training Not Available

2002 and 2009 TAA Programs

Six Criteria

Health Condition

Enrollment in Training is Not Available

Training Not Available

Recall

Marketable Skills

Retirement

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Training Waivers (2002/2009 Only)

Recall – The worker has been notified that the worker will be recalled by the firm from which the separation occurred.

Marketable Skills – The worker possesses marketable skills for suitable employment (as determined pursuant to an assessment of the worker, which may include the profiling system under section 303(j) of the Social Security Act (42 U.S.C. 503(j)), carried out in accordance with guidelines issued by the Secretary) and there is a reasonable expectation of employment at equivalent wages in the foreseeable future.

Retirement – The worker is within 2 years of meeting all requirements

for entitlement to either – (i) old-age insurance benefits under title II of the Social Security Act

(42 U.S.C. 401 et. seq.) (except for application therefor); or (ii) a private pension sponsored by an employer or labor

organization.

Remaining Training Waivers Under 2011 Act(Also allowable under 2002/2009)

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.

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Earnings Disregard (2009/2011)

For adversely affected workers in full-time, Trade-approved training:

No deduction is made for earnings from work for a week up to an amount that is equal to the worker’s most recent UI benefit amount

A state’s disqualifying income provisions only apply to the earnings in excess of the participant’s weekly benefit amount

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TRA Election Provision (2009/2011)

• Allows adversely affected workers to elect TRA instead of UI where:

– 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 adversely affected employment This provision will affect only the benefit computation for workers who are participating in full-time training other than on-the-job training

– 2) The worker is otherwise entitled to TRA.

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TRA Election Provision (2009/2011)

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TRA Election Provision: Example 1

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TRA Election Provision: Example 2

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Introduction of Completion TRA (2011)

New category of TRA aligns with the Department’s larger aim to increase the successful

completion of recognized credentials

Provides participants with up to 13 more weeks of TRA within a 20 week period in order to

complete training plan

Conditions of Completion TRA:

– The requested weeks are necessary for the worker to complete a training program that

leads to a degree or industry-recognized credential; as described in TEGL No. 15-10, and;– The worker is participating in training in each such week; and– The worker has substantially met the performance benchmarks established in the

approved training plan (see section C.3.1); and– The worker is expected to continue to make progress toward the completion of the

approved training; and – The worker will be able to complete the training during the period authorized for receipt of

Completion TRA

2011 Program Benefits: TRA Timeline

ImpactDate

LayOff

UnemploymentInsurance

CertificationTRA

Exhausted

2 1/2 Years

Basic TRA

26 Weeks52 X WBA

Completion TRA

13 Weeks Payable in 20 Weeks

130 Payable Weeks over a 150 Week period

HCTCEligible

Until one month afterlast service or benefit

Additional TRA

65 Weeks Payable in 78 Weeks

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TRA Timeline: Real-World Operations

HCTC Ends

Dec. 31,2013

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Training Benchmarks (2011)

Reviews conducted at no later than 60 day intervals from the start of the training plan

Documented in IEP and signed by participant

Two Evaluation Criteria

Satisfactory academic standing

On track to complete training within the agreed upon timeframe

Encourages early intervention and modification of unsuccessful training plans

Supports modification measures in order to increase training completion and credentials

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Required for Completion TRA eligibility

Must be established at the beginning of all training programs- except for very short training programs In general, any training program over three months in duration should

have benchmarks established to allow for quality case management opportunities and intervention as needed.

Encouraged because they strengthen case management efforts Requires strong information sharing between TRA and case

managers

Participant Served under 81,000 petition (meets benchmarks)

IEP Developedwith benchmarkrequirements documentedand signed

Up to 15 benchmark reviews through point of Completion TRA eligibility

Participant Served under 81,000 petition (fails benchmarks)

IEP Developedwith benchmarkrequirements documentedand signed

130 weeks of training

Participant fails one of two

benchmarksRevise planModify IEP

Modified plan may include Completion TRA eligibility

Completion TRA begins

2nd Failure

Participant may continue in original approved plan with no Completion TRA


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Additional TRA Matrix

Program Total Weeks Payable

Payable Within (Weeks)

TRA Election

Earnings Disregard

Remedial / Prerequisite TRA (Weeks)

Completion TRA (Weeks)

2002 52 52 NO NO YES (26) NO

2009 78 91 YES YES YES (26) NO

2011 65 78 YES YES NO YES (13)

Reverted 2002 65 78 NO NO NO YES (13)

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Appeals

Trade appeals follow the UI appeals process

– TAA, TRA, RTAA

State required to notify ETA of all appeals

– Technically, states are required to notify ETA of every decision rendered under Trade

– 20 CFR 617.52(c)

Unlike regular UI, ETA has the authority to demand additional appeals to higher levels (i.e.: courts)

– 20 CFR 617.52(c)

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Enrollment Deadlines

“A goal is a dream with a deadline.” – Napoleon Hill

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8/16 Week Deadline (2002)

Participant must be enrolled in training no more than:– 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 allowed– Equitable tolling is permissible

TRA eligibility: – From TEGL 11-02, Change 3, the above does not apply to be

eligible for TRA, if the determination is made before the training

deadlines. – A worker may receive 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.

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26/26 Week Deadline (2009/2011)

Participant must be enrolled in training no more than:– 26 weeks from the date of the petition certification; OR

– 26 weeks from the worker’s most recent total separation from adversely affected employment

– 45-day “extenuating circumstance” extension is possible

– Good Cause

• 2009: State good cause provisions allowable

• 2011: Federal good cause provision allowable

– Equitable tolling also possible

TRA eligibility: – From TEGL 11-02, Change 3, the above does not apply to be eligible for TRA,

if the determination is made before the training deadlines. – A worker may receive TRA prior to the 26/26 if all other eligibility has been met

in the Section 231(a) of the Act.– Once the enrollment deadline (26/26), is reached the training requirement

must be met: enrolled in training or receipt of a waiver.

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Deadlines – Intent

TEGL 11-02

– “These deadlines may be waived for specified reasons… However, the intent of the time limitations is that adversely-affected workers who are in need of training be enrolled in training quickly in order to expedite their adjustment and reemployment.”

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“Enrolled in Training”

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

Federal Good Cause &Equitable Tolling

Death and taxes. The only two rules without exceptions.

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Effective with the 2011 Program A waiver for good cause of the time limitations “with respect to an

application for TRA or enrollment in training” means: 26/26 week enrollment in training deadline

Same application as “state good cause” under 2009 Program TEGL 10-11 provides specific guidance

Highlights for Federal Good Cause

Federal Good Cause and Equitable Tolling are Separate and Distinct Provisions

Federal Good Cause Equitable Tolling

Statutory Yes No

Program Applicable ONLY under the 2011 Program

Available in 2002, 2009 and 2011 Programs

Deadlines Can be applied ONLY to application for TRA and enrollment in training

Applies to any TAA deadline

How applied:

After considering conditions found in TEGL 10-11

Available only in egregious circumstances where an individual acted with due diligence (TEGL 8-11)

When Available

Effective with 2011 Act Effective with issuance of TEGL: October 19, 2011

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Case Management and Related Services

“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

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Case Management

2002

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 still required prior to approval of training

2009/2011

Requires that case management services be provided to all adversely affected workers and adversely affected incumbent workers

These services are not optional.

Provision of services must be documented

Trade funds are provided to support these services

Co-enrollment is still appropriate and highly recommended

Trade participants are, by definition, dislocated workers under WIA

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Case Management

Required Services (2009/2011)

Comprehensive and specialized assessment of skill levels and service needs;

Development of an individual employment plan to identify employment goals

Information on:

training available in local and regional areas, information on

individual counseling to determine which training is suitable training, and

how to apply for such training

how to apply for financial aid

Short-term prevocational services

development of learning skills, communications skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct

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Case Management

Required Services (2009/2011)

Individual career counseling, including job search and placement counseling, during the period in which the individual is receiving a trade adjustment allowance or training under this chapter, and after receiving such training for purposes of job placement.

Provision of employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas

Information relating to the availability of supportive services, including services relating to child care, transportation, dependent care, housing assistance, and need related payments that are necessary to enable an individual to participate in training

aka: Support services available through WIA and other partner programs or local community organizations

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Merit Staffing Requirement

20 CFR 618.890

– Staff funded under Trade funds must be state merit staff (except MA, MI & CO)

– Does not apply to non-inherently governmental functions (OMB Circular A-76)

– See TEGL 15-12 for more info

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Case Management & Related Costs

Page A-50, TEGL 22-08

“In addition to staff costs for career counselors, the ‘employment and case management services’ funds may be used for: assessment tests; skills transferability analysis; peer counselors; development and provision of labor market information; maintenance and enhancement of electronic case management systems to allow for improved case management services; information on available training, including provider performance and cost information; and, any other staff costs related to case management. This list is not intended to be all inclusive.”

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Trade Funds Can Pay For…

Operating costs of American Job Centers

MIS development, appropriate upgrades and maintenance

Supplies and equipment

Assessments, labor market information, career counseling

2002 program does not provide funds for case management and related costs

… and other costs not listed here …

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Reemployment Trade Adjustment Assistance (RTAA)

“It's just a job. Grass grows, birds fly, waves pound the sand. I beat people up.” - Muhammad Ali

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What is the RTAA program?

• Wage supplement program for workers age 50 and over

• May be employed full or part-time – Full-time employment as defined by applicable state

law– Part-time only allowable under 2009/2011

• If in part-time, must also be in training

• May be combined with training (2009/2011)• Can receive RTAA after TRA

– Weeks of TRA are deduced from RTAA benefit

• Cannot receive TRA after RTAA

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RTAA Basics

50% of difference between reemployment wages and wages earned at separation

Payments may not last more than 2 years

Total payments may not exceed $10,000 ($12,000 under 2009 rules)

Health Coverage Tax Credit (HCTC)

Only while receiving RTAA payment

Group eligibility is automatic with certification of a Trade petition

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ATAA Basics

• Separate request for group eligibility under ATAA must be filed with each Petition

• Only full-time employment is allowable

• May not be combined with training

• Must be reemployed within 26 weeks of separation

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RTAA / ATAA Matrix

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

Reverted 2002 YES NO NO $10,000

84

Job Search and Relocation

Where the jobs are.

85

Job Search

• 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

86

Job Search Benefit Amount

• Under 2011, benefits are available at the 2002 benefit level and in accordance with the regulations of 20 CFR 617.48 and 617.49

– 90% of allowable costs up to $1,250

– May included multiple trips

– Governed by Federal Travel Regulations at 41 CFR §301

• Under 2009, benefits are available as defined in TEGL 22-08

– 100% of allowable costs up to $1,500

– May included multiple trips


http://www.gsa.gov/portal/ext/public/site/FTR/file/FTR301TOC.html/category/21868/hostUri/portal


87

Relocation

• 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

88

Relocation Benefit Amount

• Under 2011, benefits are available at the 2002 benefit level and in accordance with the regulations of 20 CFR 617.48 and 617.49

– 90% of allowable costs

– Lump sum payment up to $1,250


• Under 2009, benefits are available as defined in TEGL 22-08

– 100% of allowable costs

– Lump sum payment up to $1,500




89


Take two of these and call me in the morning.

90


HCTC covers 72.5% of qualifying health insurance premium costs regardless of which version of the Trade program a participant is certified under

HCTC is a program operated by the Internal Revenue Service, not the US DOL

HCTC is available as an advanced (real-time) or end-of-year tax credit

HCTC is set to expire on December 31, 2013

There is a gap on enrollment in the advance program of 1 to 2 months. Some states have National Emergency Grants available to cover this

gap These NEGs also expire no later than December 31, 2013

91

Financial Management

Follow the money.

92

Trade Funding Types

• TAA = Training, job search, relocation, case management & related costs

• TRA = Income support benefits

• A/RTAA = Wage insurance payments

93

Funding for FY 2012 and FY2013

Consolidated Allocation$575M CAP

Case Management

Admin

Job Search&

Relocation

Training

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

RTAA TRA

Uncapped Funds

Recapture and Financial Reporting

DOL may recapture funds from States with remaining un-obligated funding (2009/2011)

DOL may distribute recaptured funds to States in need of additional funding (2009/2011)

2002 program does not have a recapture provision

Trade-specific ETA-9130 now in use

94

TAA Program, Case Management and AdminHow 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 10-11; 20 CFR 618

95

96

Funding Status Issues / Recommended Practices

• 3 Year Money

– Different Law = Different Restrictions

– Proper cost allocation

• Expiration and Closeout

– Shifting pots

– Proper cost allocation

Program Reporting Requirements

Mean, and median, and mode! Oh, my!

97

98

Trade Act Participant Report (TAPR)

• A “flat file” of participant and exiter information

• Submitted quarterly by each state

• Includes performance, services, benefits and financial information

• Similar to the WIASRD / WISPR submissions for WIA

99

TAPR Performance & Service Highlights PY2012

105,115 total participants in PY2012

38% (40,198) received training

3.6% (3,819) A/RTAA participants

The average Trade participant is a 47 year-old, white male with no more than a high school diploma who has been employed in trade-impacted employment for 18 years

Top 4 NAICS codes of employment after exit reported via the TAPR:

# of Exiters % of Exiters NAICS Description

4,876 13.8% 5613 Employment Services

1,145 3.2% 6221 General Medical and Surgical Hospitals

892 2.5% 3363 Motor Vehicle Parts Manufacturing

624 1.8% 6111 Elementary and Secondary Schools

100

TAPR Performance & Service Highlights PY2012

The average duration of training is 542 days

22% of training exiters received remedial training

Only 1.2% of training exiters nationally were enrolled in an OJT

Nebraska = 11%, New Hampshire = 9%

74% of exiters enrolled in training, completed training

All Co-Enroll Training Credential646668707274767880

Entered Employment Rate

101

Data Element Validation (DEV)

DEV conducted annually

No additional annual report is required under Trade

DEV completed by the states using the file submitted for June 30 of each year

ETA Regional Offices review Trade DEV results during our regular DEV review cycle for WIA and Wagner-Peyser

FY2013 is the first DEV performance under Trade since 2009

A data integrity review has been conducted in lieu of the annual DEV requirement

Data integrity efforts will continue on a quarterly basis

102

Sunset Provisions & Program Reversion

To be continued?

103

Sunset Provisions & Reversion

• 2011 Amendments sunset on December 31, 2013

• The TAA Program will revert back to a modified version of the 2002 Amendments (on next slide)

• The “reverted TAA program” is authorized from January 1, 2014 through December 31, 2014

104

“Reverted” Program

• No Trade funds available for case management or related costs

– Costs will need to be covered under ES, WIA, NEG or other American Job Center partner programs

• The elimination of three training waivers

– 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

Program Element Matrix

2002 2009 2011 Reversion

Service Workers Eligible NO YES YES NO

Limited Countries for Shift in Production Cert. YES NO NO YESMaximum Length of Training (Weeks) 130 156 130 130

Part-time Training Allowable NO YES YES NO

Earnings Disregard and TRA Election Provisions NO YES YES NO

Case Management Funding Available NO YES YES NO

Number of Waiver Types Available 6 6 3 3

Training Enrollment Deadlines (Weeks) 8/16 26/26 26/26 8/16

Remedial Training Allowable YES YES YES YES

Remedial TRA Available YES YES NO NO

Prerequisite Courses Allowable YES YES YES YES

Prerequisite TRA Available NO YES NO NO

Completion TRA Available NO NO YES YES

106

References and Contacts

Because knowing is half the battle.

107

Internet References

TAA Homepage

http://doleta.gov/tradeact/

http://doleta.gov/tradeact/

108

Key References

• Trade Act of 1974, as amended

– 19 USC 12

• Public Law 93-618 (Trade Act of 1974)

• Public Law 100-148 (aka: The 1988 Amendments)

• Public Law 106-113 (FY2000 consolidated appropriation)

• Public Law 107-210 (Trade 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 (Merit Staffing & Funding)

• 29 CFR 90 (Petition Process)

109

Key Guidance - TEGLs

• TEGL 11-02 (2002 Operating Instructions)

– Changes 1, 2 & 3

• TEGL 02-03 (ATAA, RTAA reference)

– Changes 1, 2


– Change 1


– Changes 1, 2

• TEGL 05-00 (Program Integration)



• TEGL 05-01 (Travel)

• TEGL 09-05 (Distance Learning)

• TEGL 13-05 (Remedial Training)

• TEGL 08-11 (Equitable Tolling)

110

Key Guidance - UIPLs

• UIPL 17-87 (Strike/Lockout)

• UIPL 25-87 (Bumped Workers)

• UIPL 29-91 (Incapacitated/Deceased)

• UIPL 31-00 (TRA TAG)

111

Key Guidance - HCTC

• UIPL 02-03 (Initial Guidance)

• UIPL 05-03 (HCTC)

• UIPL 33-03 (HCTC Q&A)

• UIPL 05-06 (HCTC 1099-G)

• UIPL 21-09 (HCTC)

• UIPL 12-11 (Reversion)

• TEGL 10-02 (Bridge/Gap-Filler Grants)

112

Regional Office Contacts – Region 1

Timothy Theberge

Regional Trade Coordinator

(Primary)

617-788-0139

[email protected]

@timtheberge (Twitter)

www.slideshare.net/ttheberge

Kate McLaughlin

Trade Coordinator

(Backup)

617-788-0126

[email protected]

John Murphy

TRA Coordinator

617-788-0392

[email protected]

mailto:[email protected]

http://www.slideshare.net/ttheberge



Trade 101 - A Summary of the Trade Adjustment Assistance for Workers Program

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