SENATE AMENDED
PRIOR PRINTER'S NOS. 163, 1968, 3118 PRINTER'S NO. 3260
No. 163 Session of 2005
INTRODUCED BY ADOLPH, YUDICHAK, THOMAS, BARRAR, BAKER, BELARDI,
BELFANTI, BUNT, CALTAGIRONE, CAPPELLI, CAWLEY, DALLY, DeLUCA,
DeWEESE, EACHUS, FABRIZIO, FREEMAN, GEIST, GEORGE, GINGRICH,
GOODMAN, GRUCELA, HARHART, HARPER, HARRIS, HASAY, HENNESSEY,
HERMAN, W. KELLER, KILLION, KOTIK, LEACH, LEH, MANN,
McGEEHAN, McILHATTAN, McNAUGHTON, MELIO, R. MILLER, PISTELLA,
PRESTON, REICHLEY, RUBLEY, SAINATO, SCAVELLO, SCHRODER,
SHANER, SOLOBAY, SURRA, E. Z. TAYLOR, TIGUE, VEON,
WASHINGTON, WATSON, YOUNGBLOOD, LEDERER, PALLONE, PETRARCA,
BROWNE, SAMUELSON, GERGELY, RAYMOND, WANSACZ, CURRY, MAHER,
WRIGHT AND JAMES, JANUARY 31, 2005
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, DECEMBER 6, 2005
AN ACT
1 Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
2 P.L.2897, No.1), entitled "An act establishing a system of
3 unemployment compensation to be administered by the
4 Department of Labor and Industry and its existing and newly
5 created agencies with personnel (with certain exceptions)
6 selected on a civil service basis; requiring employers to
7 keep records and make reports, and certain employers to pay
8 contributions based on payrolls to provide moneys for the
9 payment of compensation to certain unemployed persons;
10 providing procedure and administrative details for the
11 determination, payment and collection of such contributions
12 and the payment of such compensation; providing for
13 cooperation with the Federal Government and its agencies;
14 creating certain special funds in the custody of the State
15 Treasurer; and prescribing penalties," further providing for
16 compensation rates.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Section 404(d) of the act of December 5, 1936
1 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
2 Compensation Law, amended October 19, 1988 (P.L.818, No.109), is
3 amended to read:
4 Section 404. Rate and Amount of Compensation.--Compensation
5 shall be paid to each eligible employe in accordance with the
6 following provisions of this section except that compensation
7 payable with respect to weeks ending in benefit years which
8 begin prior to the first day of January 1989 shall be paid on
9 the basis of the provisions of this section in effect at the
10 beginning of such benefit years.
11 * * *
12 (d) (1) Notwithstanding any other provisions of this <--
13 section each eligible employe who is unemployed with respect to
14 any week ending subsequent to July 1, 1980 shall be paid, with
15 respect to such week, compensation in an amount equal to his
16 weekly benefit rate less the total of (i) the remuneration, if
17 any, paid or payable to him with respect to such week for
18 services performed which is in excess of his partial benefit
19 credit and (ii) vacation pay, if any, which is in excess of his
20 partial benefit credit, except when paid to an employe who is
21 permanently or indefinitely separated from his employment.
22 (2) (i) In addition to the deductions provided for in
23 clause (1), for any week with respect to which an individual is
24 receiving a pension, including a governmental or other pension,
25 retirement or retired pay, annuity or any other similar periodic
26 payment, under a plan maintained or contributed to by a base
27 period or chargeable employer, the weekly benefit amount payable
28 to such individual for such week shall be reduced, but not below
29 zero, by the pro-rated weekly amount of the pension as
30 determined under subclause (ii).
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1 (ii) If the pension is entirely contributed to by the
2 employer, then one hundred per centum (100%) of the pro-rated
3 weekly amount of the pension shall be deducted. [If] Except as
4 set forth in clause (4), if the pension is contributed to by the
5 individual, in any amount, then fifty per centum (50%) of the
6 pro-rated weekly amount of the pension shall be deducted.
7 (iii) No deduction shall be made under this clause by reason
8 of the receipt of a pension if the services performed by the
9 individual during the base period or remuneration received for
10 such services for such employer did not affect the individual's
11 eligibility for, or increase the amount of, such pension,
12 retirement or retired pay, annuity or similar payment. [This
13 subclause shall not apply to pensions paid under the Social
14 Security Act (Public Law 74-271, 42 U.S.C. § 301 et seq.) or the
15 Railroad Retirement Act of 1974 (Public Law 93-445, 88 Stat.
16 1305) or the corresponding provisions of prior law. Payments
17 made under such acts shall be treated solely in the manner
18 specified by subclause (i) of this clause.]
19 (3) The provisions of this subsection shall be applicable
20 whether or not such vacation pay, retirement pension or
21 annuities or wages are legally required to be paid. If such
22 retirement pension or annuity payments deductible under the
23 provisions of this subsection are received on other than a
24 weekly basis, the amount thereof shall be allocated and pro-
25 rated in accordance with the rules and regulations of the
26 department. Vacation pay or other remuneration deductible under
27 the provisions of this subsection shall be pro-rated on the
28 basis of the employe's normal full-time weekly wage and as so
29 pro-rated shall be allocated to such period or periods of
30 unemployment as shall be determined by rules and regulations of
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1 the department. Such compensation, if not a multiple of one
2 dollar ($1), shall be computed to the next lower multiple of one
3 dollar ($1).
4 (D) (1) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS <--
5 SECTION EACH ELIGIBLE EMPLOYE WHO IS UNEMPLOYED WITH RESPECT TO
6 ANY WEEK ENDING SUBSEQUENT TO JULY 1, 1980 SHALL BE PAID, WITH
7 RESPECT TO SUCH WEEK, COMPENSATION IN AN AMOUNT EQUAL TO HIS
8 WEEKLY BENEFIT RATE LESS THE TOTAL OF ALL OF THE FOLLOWING:
9 (I) [THE] THE REMUNERATION, IF ANY, PAID OR PAYABLE TO HIM
10 WITH RESPECT TO SUCH WEEK FOR SERVICES PERFORMED WHICH IS IN
11 EXCESS OF HIS PARTIAL BENEFIT CREDIT [AND].
12 (II) [VACATION] VACATION PAY, IF ANY, WHICH IS IN EXCESS OF
13 HIS PARTIAL BENEFIT CREDIT, EXCEPT WHEN PAID TO AN EMPLOYE WHO
14 IS PERMANENTLY OR INDEFINITELY SEPARATED FROM HIS EMPLOYMENT.
15 (III) SEVERANCE PAY. FOR PURPOSES OF THIS SUBCLAUSE, ALL OF
16 THE FOLLOWING APPLY:
17 (A) SEVERANCE PAY IS ATTRIBUTED TO THE DAY, DAYS, WEEK OR
18 WEEKS IMMEDIATELY FOLLOWING THE EMPLOYE'S SEPARATION.
19 (B) THE NUMBER OF DAYS OR WEEKS TO WHICH SEVERANCE PAY IS
20 ATTRIBUTED IS DETERMINED BY DIVIDING THE TOTAL AMOUNT OF
21 SEVERANCE PAY BY THE REGULAR FULL-TIME DAILY OR WEEKLY WAGE OF
22 THE CLAIMANT.
23 (C) THE AMOUNT OF SEVERANCE PAY ATTRIBUTED TO EACH DAY OR
24 WEEK EQUALS THE REGULAR FULL-TIME DAILY OR WEEKLY WAGE OF THE
25 CLAIMANT.
26 (D) WHEN THE ATTRIBUTION OF SEVERANCE PAY IS MADE ON THE
27 BASIS OF THE NUMBER OF DAYS, THE PAY SHALL BE ATTRIBUTED TO THE
28 CUSTOMARY WORKING DAYS IN THE CALENDAR WEEK.
29 (2) (I) IN ADDITION TO THE DEDUCTIONS PROVIDED FOR IN
30 CLAUSE (1), FOR ANY WEEK WITH RESPECT TO WHICH AN INDIVIDUAL IS
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1 RECEIVING A PENSION, INCLUDING A GOVERNMENTAL OR OTHER PENSION,
2 RETIREMENT OR RETIRED PAY, ANNUITY OR ANY OTHER SIMILAR PERIODIC
3 PAYMENT, UNDER A PLAN MAINTAINED OR CONTRIBUTED TO BY A BASE
4 PERIOD OR CHARGEABLE EMPLOYER, THE WEEKLY BENEFIT AMOUNT PAYABLE
5 TO SUCH INDIVIDUAL FOR SUCH WEEK SHALL BE REDUCED, BUT NOT BELOW
6 ZERO, BY THE PRO-RATED WEEKLY AMOUNT OF THE PENSION AS
7 DETERMINED UNDER SUBCLAUSE (II).
8 (II) IF THE PENSION IS ENTIRELY CONTRIBUTED TO BY THE
9 EMPLOYER, THEN ONE HUNDRED PER CENTUM (100%) OF THE PRO-RATED
10 WEEKLY AMOUNT OF THE PENSION SHALL BE DEDUCTED. [IF] EXCEPT AS
11 SET FORTH IN CLAUSE (4), IF THE PENSION IS CONTRIBUTED TO BY THE
12 INDIVIDUAL, IN ANY AMOUNT, THEN FIFTY PER CENTUM (50%) OF THE
13 PRO-RATED WEEKLY AMOUNT OF THE PENSION SHALL BE DEDUCTED.
14 (III) NO DEDUCTION SHALL BE MADE UNDER THIS CLAUSE BY REASON
15 OF THE RECEIPT OF A PENSION IF THE SERVICES PERFORMED BY THE
16 INDIVIDUAL DURING THE BASE PERIOD OR REMUNERATION RECEIVED FOR
17 SUCH SERVICES FOR SUCH EMPLOYER DID NOT AFFECT THE INDIVIDUAL'S
18 ELIGIBILITY FOR, OR INCREASE THE AMOUNT OF, SUCH PENSION,
19 RETIREMENT OR RETIRED PAY, ANNUITY OR SIMILAR PAYMENT. [THIS
20 SUBCLAUSE SHALL NOT APPLY TO PENSIONS PAID UNDER THE SOCIAL
21 SECURITY ACT (PUBLIC LAW 74-271, 42 U.S.C. § 301 ET SEQ.) OR THE
22 RAILROAD RETIREMENT ACT OF 1974 (PUBLIC LAW 93-445, 88 STAT.
23 1305) OR THE CORRESPONDING PROVISIONS OF PRIOR LAW. PAYMENTS
24 MADE UNDER SUCH ACTS SHALL BE TREATED SOLELY IN THE MANNER
25 SPECIFIED BY SUBCLAUSE (I) OF THIS CLAUSE.]
26 (3) THE PROVISIONS OF THIS SUBSECTION SHALL BE APPLICABLE
27 WHETHER OR NOT SUCH VACATION PAY, SEVERANCE PAY, RETIREMENT
28 PENSION OR ANNUITIES OR WAGES ARE LEGALLY REQUIRED TO BE PAID.
29 IF SUCH RETIREMENT PENSION OR ANNUITY PAYMENTS DEDUCTIBLE UNDER
30 THE PROVISIONS OF THIS SUBSECTION ARE RECEIVED ON OTHER THAN A
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1 WEEKLY BASIS, THE AMOUNT THEREOF SHALL BE ALLOCATED AND PRO-
2 RATED IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE
3 DEPARTMENT. VACATION PAY OR OTHER REMUNERATION DEDUCTIBLE UNDER
4 THE PROVISIONS OF THIS SUBSECTION SHALL BE PRO-RATED ON THE
5 BASIS OF THE EMPLOYE'S NORMAL FULL-TIME WEEKLY WAGE AND AS SO
6 PRO-RATED SHALL BE ALLOCATED TO SUCH PERIOD OR PERIODS OF
7 UNEMPLOYMENT AS SHALL BE DETERMINED BY RULES AND REGULATIONS OF
8 THE DEPARTMENT. SUCH COMPENSATION, IF NOT A MULTIPLE OF ONE
9 DOLLAR ($1), SHALL BE COMPUTED TO THE NEXT LOWER MULTIPLE OF ONE
10 DOLLAR ($1).
11 (4) No deductions shall be made under this subsection for
12 pensions paid under the Social Security Act (Public Law 74-271,
13 42 U.S.C. § 301 et seq.), the Railroad Retirement Act of 1974
14 (Public Law 93-445, 88 Stat. 1305) or other Federal pension, if
15 the pension is contributed to by the individual in any amount.
16 (5) FOR PURPOSES OF THIS SUBSECTION, THE TERM "SEVERANCE <--
17 PAY" MEANS PAYMENTS MADE BY AN EMPLOYER TO AN EMPLOYE ON ACCOUNT
18 OF SEPARATION FROM THE SERVICE OF THE EMPLOYER, REGARDLESS OF
19 WHETHER THE EMPLOYER IS LEGALLY BOUND BY CONTRACT, STATUTE OR
20 OTHERWISE TO MAKE SUCH PAYMENTS. THE TERM DOES NOT INCLUDE
21 PAYMENTS FOR PENSION, RETIREMENT OR ACCRUED LEAVE OR PAYMENTS OF
22 SUPPLEMENTAL UNEMPLOYMENT BENEFITS.
23 * * *
24 Section 2. This act shall take effect in 60 days. <--
25 SECTION 2. THE AMENDMENT OF SECTION 404(D) OF THE ACT SHALL <--
26 APPLY TO WEEKS OF UNEMPLOYMENT ENDING ON OR AFTER THE EFFECTIVE
27 DATE OF THIS SECTION.
28 SECTION 2. THE AMENDMENT OR ADDITION OF SECTION 404(D)(1), <--
29 (3) AND (5) OF THE ACT SHALL APPLY TO WEEKS OF UNEMPLOYMENT
30 ENDING AFTER DECEMBER 31, 2006.
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1 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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