The Implementation and the Impact of the Trade Adjustment Assistance Extension Act of 2011 January 27, pm Lindsay Webb, TAA Coordinator, National Employment Law Project Ragini Kapadia, Senior Economic Analyst, Working for America Institute Moderated by Lynn Minick, National Employment Law Project with Presentations by the IRS Health Coverage Tax Credit Program and the Minnesota Department of Employment and Economic Development

Ragini Kapadia, Senior Economic Analyst, AFL-CIO Working for America Institute Findings and Resources on the Trade Adjustment Assistance Act

The Working for America Institute The AFL-CIO Working for America Institute (WAI) is a union-sponsored, nonprofit organization dedicated to creating good jobs and building strong communities. WAI has made significant progress in articulating a vision of a high road economy—an economy that competes in today’s global marketplace on the basis of innovation, quality and skill rather than on low wages and a lack of benefits.

US DOL Technical Assistance Grant 8 State Partners: CA, IN, MA, MI, MN, NY, OH, PA National Partner: NELP Technical Assistance to Unions, Employers, Union-Sponsored Workforce Development and Dislocated Workers Programs

Challenges Workers eligible for TAA do not take full advantage of TAA retraining and reemployment services Lack of awareness and information on TAA that is accessible and relevant to trade affected workers Uncooperative employers who hold up and delay the TAA petition process Consistent guidelines and capacity for state outreach on TAA Disconnect between local unions and resources on TAA

Best Practices Enrolling trade affected workers at the earliest date possible: Case Studies in Pennsylvania Coordination and integration of services involving large regions and multiple jurisdictions: the NUMMI Case Study in California Utilization of social networks and multimedia to increase awareness on TAA Partnerships between employers, unions, and state workforce agencies.

The Trade Adjustment Assistance Extension Act of 2011 Lindsay Webb, TAA Coordinator National Employment Law Project

Trade Adjustment Assistance NELP promotes TAA as the best existing dislocated worker program – Only TAA provides income support AND training for dislocated workers – TAA includes limited health care option—HCTC With 2011 reauthorization, substantial TAA improvements from 2009 were retained: – Eligibility for service workers as well as manufacturing workers – Incumbent worker training for “at risk employment.” – Offshoring coverage for shifts to all countries – Retains higher level of spending ($575 M)

The Law that governs TAA Most recent TAAEA was signed into law by President Obama on Oct. 21, 2011 But it is still referred to as The Trade Act of 1974 (19 U.S.C. § 2271 et seq.) as amended This Act Creates 3 distinct program (2002, 2009, 2011) Each program has a different sets of rules: – 20 CFR 617; – 20 CFR 618 – TEGL (2002) – TEGL (2009) – TEGL (2011)

Petition Number Grid TAA LawPetition NumberApplicable Date Election Option 2002 AmendmentsBelow TA-W-70,000Before May 18, 2009NO 2009 Recovery Act TA-W-70,000 to TA-W-79,999 May 18, 2009 to Feb. 14, 2011 NO 2002 “Gap” Program TA-W-80,000 to TA-W-80,999 Feb. 14, 2011 to Oct. 21, 2011 YES 2011 AmendmentsTA-W-81,000After Oct. 21, 2011NO

Worker Election Petitions filed between Feb. 14, 2011 and Oct. 21, 2011 (so-called gap period) are impacted. – Those petitions (80,000 – 80,999) still under investigation will be considered under 2011 rules. – Those petitions denied during this period will be reconsidered. And, workers certified under one of these petitions who sought TAA services will have an election between the 2002 Act and the 2011 Act benefits. – The election period begins Dec. 20, 2011 and ends March 19, 2012.

Certification Pointers There are two ways to be certified as a primary certification: – Shift in production or increase in import Shifts in Production – Must show jobs transferred to any country. – Prove shift in production through employer admission or other evidence provided by petitioner Increase in Imports – Must be like or directly competitive – “contributed importantly” to layoffs » important cause, but not necessarily more important than any other cause

Certification Pointers However, firms for can be certified as a secondary certification if: – They are a direct supplier of component parts to certified primary firm that accounted for 20% of production or sales OR loss of business with primary firm “contributed importantly” to layoffs, OR – If they are a Downstream producer providing additional, value added production directly for primary firm

TAA Eligibility Two step TAA eligibility process Group Eligibility (by workplace) – Petition for eligibility with U.S. Labor Department (3 workers, union, employer, state or local workforce agency, governor) Individual Eligibility (by worker) – Individual application and processing for certified workers, often after group orientation

Impact Date Under 2002 and 2009 the impact date was generally a year from the date of certification. BUT, under 2011, the impact date is extended for all certifications filed between October 21, 2011 and the January 19, – The new impact date for these certifications is February 13, So, anyone laid off from that date to 26 weeks after certification will be covered

Weeks of Income Support Vary by Act Trade Adjustment Assistance Act Regular State Benefits26 Basic Trade Readjustment Allowance (TRA)26 Additional Trade Readjustment Allowance (TRA) Remedial Trade Readjustment Allowance (TRA) Completion Trade Readjustment Allowance (TRA) Maximum Number of Weeks Note: Trade Adjustment Assistance participants must exhaust regular federal and state unemployment insurance benefits before starting TRA. The weeks of regular federal and state unemployment insurance benefits count toward the maximum number of weeks available. For example, in recent years, unemployed workers may have qualified for up to 99 weeks of federal and state unemployment benefits. Under the 2011 Act, a worker who received 99 weeks of regular benefits would, at most, be eligible for 31 weeks of TRA for a total of 130 weeks. [1] Regular State Benefits: Most states offer 26 weeks of regular state benefits. [2] Basic TRA: Income support available to all TAA-certified workers, even workers on a training waiver. However, the 2011 Amendments reduce reasons for a waiver. [3] Additional TRA: Income support available to workers in approved training. [4] Remedial TRA: Income support for workers in training who requires remedial training. [5] Completion TRA: Income support for workers in active training and meeting performance benchmarks.

2002TRAOverview 2002 TRA Overview 26 weeks Unemployment 26 weeks Basic TRA 52 weeks Additional TRA 26 weeks Remedial TRA ++ + = 104 weeks = 130 weeks

TRA Overview 26 weeks Unemployment Benefits 104 weeks TRA 13 Weeks Completion of Degree or Credential + = 130 weeks BUT LAST

Completion TRA To receive Completion TRA, – a worker must have exhausted Additional TRA, and – need completion TRA to finish a degree or industry- recognized credential and – met and continue to meet the performance benchmarks established in the approved training plan and – participate in training in each week he/she receives Completion TRA Training benchmarks are agreed to and initiated at the start of the training plan and reviewed every 60 days. Evaluation criteria: – Satisfactory academic standing – On schedule to complete training according to training plan

Approval of TAA Training Six Conditions for Approval of TAA Training No suitable employment for the worker. Worker would benefit from appropriate training. Reasonable expectation of employment following training. Training is reasonably available to the worker. Worker is qualified to obtain and complete the training, including having adequate financial resources available to complete the training when income support is exhausted. The training is suitable and available at a reasonable cost.

Enrollment Deadlines Must be enrolled in training OR have a training waiver by the LATEST of – the end of the week after the week that is 26 weeks after TAA certification OR – the end of the 26 th week after the worker’s most recent total separation from affected employment One 45 day extension for “extenuating circumstances” 210 Day Rule—Applies to Additional Tar Equitable Tolling—TEGL-08-11

Training Waivers Dropped after 2011 changes: Worker will be recalled reasonably soon; or The worker has marketable skills for suitable employment and a reasonable expectation of employment in the foreseeable future; or The worker is within two years of eligibility for a pension or social security; Remaining after 2011 changes: The worker is unable to participate in or complete training due to the health of the worker; or Immediate enrollment is not available; or No training program is available.

Job Search & Relocation Allowances Up to $1250 to cover up to 90% of travel and subsistence costs (2011 change) Must be pre-approved, no local employment available Not more than 365 days after layoff or certification, or 182 days after completion of training Pays up to 90% of moving costs and travel to accept employment outside normal commuting area Must be pre-approved, no local employment available Pays up to 90% of charges or maximum of $1250 (2011 change) Must apply within 425 days of layoff or certification, or 182 days of completion of training No longer considered an entitlement Subject to state funding availability and preapproval

Reemployment TAA Must be 50 years or older and separated from TAA certified employment Worker accepts new work by end of 26th week after layoff or certification, whichever is later ATAA pays 50% of difference between the prior wage and the new wage up to a maximum of $10,000 over 2 years, whichever comes first. Annual wage must be less than $50,000 Electing RTAA no longer cuts off other TAA options, including part time training No separate certification required

Petitions TA-W-69,999 and below Petitions TA-W-70,000 through TA-W-79,999 Petitions TA-W-80,000 to TA-W-80,999 for workers who begin receiving services before Dec. 20, 2011 Petitions TA-W-81,000 and above 2002 Law Benefits2009 Law Benefits2002 Law Benefits2011 Law Benefits Eligibility Manufacturing workers Workers who have lost their jobs because their company’s decline in production and/or sales was due to increased imports or the outsourcing of jobs to a country with which the US has a Free Trade Agreement Manufacturing workers Service sector workers Public sector workers ITC workers (those who work for a firm that has been identified by the International Trade Commission as in a domestic industry that has been injured/is a party to a market disruption) Workers who have lost their jobs because their company’s decline in production and/or sales was due to increased imports or outsourcing to ANY country Manufacturing workers Workers who have lost their jobs because their company’s decline in production and/or sales was due to increased imports or the outsourcing of jobs to a country with which the US has a Free Trade Agreement Manufacturing workers Service sector workers ITC workers (those who work for a firm that has been identified by the International Trade Commission as in a domestic industry that has been injured/is a party to a market disruption) Workers who have lost their jobs because their company’s decline in production and/or sales was due to increased imports or outsourcing to ANY country Trade Readjustment Allowance Up to 104 weeks (enrolled in full-time training) OR Up to 130 weeks (enrolled in remedial training) 8/16 rule applies Up to 130 weeks (enrolled in full-time training) OR Up to 156 weeks (enrolled in remedial training) 26-week rule applies Up to 104 weeks (enrolled in full-time training) OR Up to 130 weeks (enrolled in remedial training) 8/16 rule applies Up to 130 weeks available to workers enrolled in full- time training, the last 13 of which are only available if needed for completion of a training program and training benchmarks are met. 26-week rule applies Training Waivers 1. Worker will be recalled to work reasonably soon 2. Worker has marketable skills for suitable employment and a reasonable expectation of employment in the foreseeable future 3. Worker is within two years of eligibility for a pension or social security 4. Worker is unable to participate in or complete training due to health condition 5. No training program is available 6. An enrollment date is not immediately available 1. Worker is unable to participate in or complete training due to a health condition 2. No training program is available 3. An enrollment date is not immediately available Health Coverage Tax Credit 72.5% of qualifying health insurance premium costs

Petitions TA-W-69,999 and below Petitions TA-W-70,000 through TA-W-79,999 Petitions TA-W-80,000 to TA-W-80,999 for workers who begin receiving services before Dec. 20, 2011 Petitions TA-W-81,000 and above 2002 Law Benefits2009 Law Benefits2002 Law Benefits2011 Law Benefits Job Search Allowance Relocation Allowance 90% of allowable job search costs up to $1,250 90% of allowable relocation costs, plus additional lump sum payment up to $1, % of allowable job search costs up to $1, % of allowable relocation costs, plus an additional lump sum payment up to $1,500 90% of allowable job search costs up to $1,250 90% of allowable relocation costs, plus an additional lump sum payment up to $1,250 Up to 90% of allowable job search costs, up to a maximum of $1,250, available at state discretion Up to 90% of allowable relocation costs, plus an additional lump sum payment of up to $1,250, available at state discretion Training Funding Case Management Funding $220 Million Cap Applies to Training Funds Only Additional 15% available for administration. Additional funds are available for job search & relocation allowances. No funds are available for case management and employment services. $575 Million Cap Applies to Training Funds Only Additional 15% available for administration, and case management and employment services. At least 1/3 of these funds must be used for case management and employment services. States also receive $350,000/year for case management and employment services. Additional funds available for job search and relocation allowances. $220 Million Cap Applies to Training Funds Only Additional 15% available for administration. Additional funds are available for job search & relocation allowances. No funds are available for case management and employment services. $575 Million Cap Applies to training, job search & relocation allowances, case management and employment services, and associated administration. No more than 10% of the amount provided may be spent for administration; No less than 5% or the amount provided may be spent for case management and employment services. DOL may recapture from the states funds remaining unobligated after two or three years and distribute such funds to states in need of funds. Alternative Trade Adjustment Assistance (2002)/ Reemployment Trade Adjustment Assistance (209/2011) Requires separate group certification Available to workers earning less than an annual salary of $50,000 Maximum total benefit of up to $10,000 Training benefit NOT available Does not require separate group certification Available to workers earning less than an annual salary of $55,000 Maximum total benefit of up to $12,000 Training benefit is also available Requires separate group certification Available to workers earning less than an annual salary of $50,000 Maximum total benefit of up to $10,000 Training benefit NOT available Does not require separate group certification Available to workers earning less than an annual salary of $50,000 Maximum total benefit of up to $10,000 Training benefit is also available

Minnesota’s Approach: TAAEA 2011 Implementation and Impact January 27, 2012 Debra Schlekewy

What Will We Cover? Minnesota’s approach to TAA 2011 Implementation activities and concerns Accomplishments and challenges

The Minnesota Model of TAA Absolute, 100 percent co- enrollment with Dislocated Worker Centralized staff (seven) handle the entire statewide caseload Agency leads petition process 33

What Does Co-Enrollment Mean? 1. Every person eligible for TAA, is automatically eligible for Dislocated Worker. 2. Each job seeking customer gets a Dislocated Worker counselor (in field) and a TAA specialist (in St. Paul). 3. The counselor and specialist work together to ensure easy service. 4. More resources available for each customer. 34

2011 TAAEA Enactment Signed into Law on October 21, 2011 New program benefits and services began immediately The TAA program administers three distinct sets of rules for the 2002, 2009, and 2011 provisions

2011 Implementation activities 2011 Choice process Waiver changes TRA changes State’s discretion for job search and relocation allowance Training Benchmarks

2011 Choice/Election Process 2011 TAAEA Choice Process 1. Available to TAA participants covered under an 80,000 series petition and served under the 2002 program. 2. Participants can make a one-time choice between 2002 or 2011 program.

2011 Choice/Election Process 2011 TAAEA Choice Process

Training Waiver Requirement Changes 2002 and 2009 TAA Programs Six options: Health Condition Enrollment in Training is not Available No Training is Available Recall Marketable Skills Retirement 2011 TAAEA Program Three options: Health Condition Enrollment in Training is not Available No Training is Available

TRA changes Elimination of Remedial and Prerequisite TRA. – Remedial and prerequisite training should continue to be part of an approved training plan where appropriate. Addition of Completion TRA – Provides participants with up to 13 additional weeks of TRA within a 20 week period in order to complete their training plan. Concern: – Fall and Spring semesters run weeks. – Participants who exhausting Completion TRA before finishing their training program may be in jeopardy of an overpayment.

Maximum TRA Eligible Weeks 2002: 130 potential weeks – Up to 26 weeks of Unemployment Insurance – 26 weeks of Basic TRA – 52 weeks of Additional TRA – 26 weeks of Remedial TRA 2009: 156 potential weeks – Up to 26 weeks of Unemployment Insurance – 26 weeks of Basic TRA – 78 weeks of Additional TRA – 26 weeks of Remedial/Prerequisite TRA 2011: 130 potential weeks – Up to 26 weeks of Unemployment Insurance – 26 weeks of Basic TRA – 65 weeks of Additional TRA – 13 weeks of Completion TRA

Job Search & Relocation Allowances 2011 reverts back to 2002 levels, although states will not receive additional funds to administer these benefits TAAEA allows states’ discretion to offer workers Job Search and Relocation Allowance benefits. Minnesota will continue to provide these benefits. Nine out of ten states in our region have elected to offer these benefits.

Training Benchmarks Two criteria: Satisfactory academic standing On track to complete training within the agreed upon timeframe Reviews conducted at 60 day intervals after training begins. Documented in individual plans and signed by participant. Encourages intervention and modification of unsuccessful training plans, and modifications to complete credentials. Minnesota is designing a state-wide individual TAA plan through our case management database.

TAA regularly meets or exceeds standards High performance persists through recent economic hardships Accomplishments - Outcomes Trade Adjustment Assistance (TAA) At-a-Glance Statewide Performance Program Year 2010 (July 1, June 30, 2011) Served Getting a Job Standard Getting a Job Results Keeping a Job Standard Keeping a Job Results Credential Rate Standard Credential Rate Results 2 Qtr Wage Standard 2 Qtr Wage Results 3, %87.5%88.0%94.8%62.0%65.1%$16,400$17,619

Accomplishments - Improvements revised entire application process revised purchase order process established participant portal /applytaa 2011 and clarify case management model

One-stop shop for the new TAA customer Public site, with only a “side door” Will always have the most recent information on TAA relevant to Minnesota We are developing a “Counselor Portal”

Accomplishments – The Minnesota TAA team was nominated for a 2011 Governor’s Continuous Improvement award.

Challenges for Train counselors intensively on the clarified case management model and waiver confusion; 2. Continued implementation the latest TAA law; 3. Integrate and develop new staff; 4. Maintain pace of continuous improvement with initiatives to enhance customer notification, process payments more quickly, and integrate with TRA processes. 48

The Health Coverage Tax Credit Trade Adjustment Assistance Extension Act of 2011 Last Update: December 2011

Question and Answer

For more information: The Working for America Institute Ragini Kapadia, Sr. Economic Analyst, The National Employment Law Project Lindsay Webb, TAA Coordinator, Lynn Minick, Dislocated Worker Specialist, MN’s Department of Employment and Economic Development Debra Schlekewy, Program Coordinator, IRS Health Coverage Tax Credit Stakeholder Engagement For questions or materials,