1Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
2P.L.2897, No.1), entitled "An act establishing a system of
3unemployment compensation to be administered by the
4Department of Labor and Industry and its existing and newly
5created agencies with personnel (with certain exceptions)
6selected on a civil service basis; requiring employers to
7keep records and make reports, and certain employers to pay
8contributions based on payrolls to provide moneys for the
9payment of compensation to certain unemployed persons;
10providing procedure and administrative details for the
11determination, payment and collection of such contributions
12and the payment of such compensation; providing for
13cooperation with the Federal Government and its agencies;
14creating certain special funds in the custody of the State
15Treasurer; and prescribing penalties," further providing for
16rate and amount of compensation.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

19Section 1. Section 404(d)(1) and (1.1) of the act of 
20December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as 
21the Unemployment Compensation Law, amended June 20, 2011 
22(P.L.16, No.6), are amended to read:

23Section 404. Rate and Amount of Compensation.--Compensation
24shall be paid to each eligible employe in accordance with the

1following provisions of this section except that compensation
2payable with respect to weeks ending in benefit years which
3begin prior to the first day of January 1989 shall be paid on
4the basis of the provisions of this section in effect at the
5beginning of such benefit years.

6* * *

7(d) (1) Notwithstanding any other provisions of this
8section each eligible employe who is unemployed with respect to
9any week ending subsequent to July 1, 1980 shall be paid, with
10respect to such week, compensation in an amount equal to his
11weekly benefit rate less the total of (i) the remuneration, if
12any, paid or payable to him with respect to such week for
13services performed which is in excess of his partial benefit
14credit, (ii) vacation pay, if any, which is in excess of his
15partial benefit credit, except when paid to an employe who is
16permanently or indefinitely separated from his employment and
17(iii) the amount of severance pay that is attributed to the
18week.

19(1.1) For purposes of clause (1)(iii), all of the following
20apply:

21(i) "Severance pay" means one or more payments made by an
22employer to an employe on account of separation from the service
23of the employer, regardless of whether the employer is legally
24bound by contract, statute or otherwise to make such payments.
25The term includes an amount received as consideration for or in 
26settlement or release of claims arising from the early 
27termination of an employment contract. The term does not include
28payments for pension, retirement or accrued leave or payments of
29supplemental unemployment benefits.

30(ii) The amount of severance pay attributed pursuant to

1subclause (iii) shall be:

2(A) For an amount received as consideration for or in
3settlement or release of claims arising from the early
4termination of an employment contract, one hundred per centum
5(100%) of the amount.

6(B) For other types of severance pay, an amount not less
7than zero (0) determined by subtracting forty per centum (40%)
8of the average annual wage as calculated under subsection (e) as
9of June 30 immediately preceding the calendar year in which the
10claimant's benefit year begins from the total amount of
11severance pay paid or payable to the claimant by the employer.

12(iii) Severance pay is attributed as follows:

13(A) Severance pay is attributed to the day, days, week or
14weeks immediately following the employe's separation.

15(B) The number of days or weeks to which severance pay is
16attributed is determined by dividing the total amount of
17severance pay by the regular full-time daily or weekly wage of
18the claimant.

19(C) The amount of severance pay attributed to each day or
20week equals the regular full-time daily or weekly wage of the
21claimant.

22(D) When the attribution of severance pay is made on the
23basis of the number of days, the pay shall be attributed to the
24customary working days in the calendar week.

25* * *

26Section 2. This act applies to initial claims filed on or
27after July 1, 2013.

28Section 3. This act shall take effect in 60 days.