Trade Adjustment Assistance Extension Act of 2011 (TAAEA)

1. Trade Adjustment Assistance Extension Act of 2011 (TAAEA) Deval L. Patrick, Governor Timothy P. Murray, Lieutenant Governor Joanne F. Goldstein, Secretary George Moriarty, Director Department of Career Services

2. Purpose • The TAA program has and will continue to help workers who have lost their jobs as a result of foreign trade to quickly rejoin the workforce by providing them with the means to attain competitive and marketable skills for today’s increasingly competitive work environment.

3. What is the TAA Program? • The TAA program offers a variety of benefits and services to eligible workers, including: • job training • income support (TRA) • job search and relocation allowances • 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 (RTAA)

4. Some History… • The TAA program was first established by the Trade Act of 1974, and has been amended several times. • It was amended in 2002 through the Trade Adjustment Assistance Reform Act of 2002. Then, it was amended in 2009 through the Trade and Globalization Adjustment Assistance Act of 2009. Most recently, effective October 21, 2011, President Obama signed the Trade Adjustment Assistance Extension Act of 2011 (TAAEA).

5. Trade Adjustment Assistance Extension Act of 2011 • Enactment: • Trade Adjustment Assistance Extension Act of 2011 (TAAEA) was signed into Law on October 21, 2011 • New benefits and services are effective immediately, but cannot be accessed until December 20, 2011. • The TAA program will administer three distinct sets of rules for the 2002, 2009, and 2011 provisions

6. Important Dates • February 12, 2011 • Sunset of the 2009 Amendments • February 13, 2011 (actual date is February 15, 2011) • The first day of reversion to 2002 Amendments • October 21, 2011 • Date of Enactment of TAAEA • December 20, 2011 • Day 60 after the Date of Enactment of TAAEA • March 19, 2012 • Day 150 after Date of Enactment of TAAEA

7. Key Features of the 2011 Program • Service sector was again added to workers that may be covered • Retroactive Provisions • Introduction of Completion TRA and Benchmarks • Elimination of Remedial TRA • Elimination of Three Training Waivers • Job Search and Relocation Allowances are discretionary • HCTC Tax Credit is now 72.5% for ALL eligible TAA participants • Please note that as of January 1, 2014 the tax credit will no longer be available. • Federal Good Cause (no State defined good cause) • Reemployment TAA (RTAA)

8. Application of 2011 Amendments: Petitions • Workers under Petitions filed before February 13, 2011 receive 2009 benefits and services (70,000-79,999) • Petitions filed between February 13, 2011 and October 21, 2011 have multiple scenarios (80,000-80,999) • Petitions filed on or after October 21, 2011 receive 2011 benefits and services (81,000+)

9. Worker Group Eligibility • Worker group coverage under the 2011 Program is restored to the coverage provided under the 2009 Program, with the exception of coverage for workers in public agencies • Extended Impact Date • Impact Date = Generally one year before the date of the petition certification • 2011 Amendments expand the impact date to February 13,2010 for ALL certifications of petitions filed between October 21, 2011 and January 19, 2012.

10. Retroactive Procedures for Petitions numbered 80,000-80,999 • If these petitions are still under investigation on or after the date of enactment, they will be determined based on the 2011 program • No action is required by petitioners or the state. This process will take place automatically. • If these petitions were denied before the date of enactment, they will be automatically re-investigated under the 2011 program • Each case will be re-opened automatically. • If a petition was certified for TAA, but denied ATAA, these workers will be eligible to apply for RTAA under the 2011 program.

11. Election Provisions(80,000-80,999) • During the 60 days after enactment, workers receiving benefits will continue to receive benefits under the 2002 Program. • The 2011 Program became available on December 20, 2011. These affected workers can either… • Choose to continue receiving benefits under the 2002 Program OR • Move to the 2011 Program • If a participant does not make an election by March 19, 2012, he/she will remain under the 2002 Program

12. What Does “Receiving Benefits” Mean? • Training Waiver • A training waiver is in effect for the worker on December 20, 2011; OR • Training • The worker has an approved training plan and is enrolled in training, participating in training, or has completed training by December 20, 2011; OR • Job Search and Relocation Allowances • The worker has been approved for a job search or relocation allowance, even if the payment has not yet occurred on or before December 20, 2011; OR • Trade Readjustment Allowance (TRA) and ATAA • The worker has received a payment of either TRA or ATAA for a week before or for the week that includes December 20, 2011

13. 2002 Program to the 2011 Program • The election must be made on or after December 20, 2011 and before March 19, 2012 • Transition to new benefits on the first week after the state documents the choice • Benefits received before the worker makes the choice count towards the maximum (i.e. TRA) • Workers receiving benefits under the 2002 program, but not enrolled in training must comply with the 8/16 week deadline • Waivers permitted under the 2002 Program, but eliminated under the 2011 Program will not be available for workers choosing to move to the 2011 Program. • For workers moving to the 2011 Program, training plans must be amended to establish benchmarks

14. Question: Can participants covered under the same petition be covered under two different sets of law?

15. Highlights for Federal Good Cause • Effective only with the 2011 Program • A waiver for good cause of the time limitations applies “with respect to an application for TRA or enrollment in training”. This means the 26 week enrollment in training deadline. • Same application procedure as “state good cause” under 2009 Program

16. Federal Good Cause Criteria • Worker acted reasonably prudent • Determination/Notice not received • Factors outside of the control of the worker • Worker sought extension in timely manner • Worker physically unable to take timely action • Intimidation, coercion, or harassment by employer • Worker misinformed by career center or state staff • Reasonable advice not provided to worker • Compelling reasons or circumstances • Neglect by the state • Illness or injury to worker or immediate family • Delay in mail • Natural catastrophe • Delay in employer providing information • Compelling personal affairs or problems • Communication not in worker’s native language • Loss or unavailability of records

17. Equitable Tolling • Equitable Tolling is a doctrine that permits the suspension of statutory and administrative deadlines where equity demands it. • Equitable Tolling of a deadline may only apply in egregious circumstances where an individual acted with due diligence to meet the deadline. • What benefits can be Equitably tolled?: • Training for TRA purposes • Additional TRA • Job Search Allowances • Relocation Allowances

18. Equitable Tolling • Equitable Tolling should be applied in situations where it would be manifestly unfair to deny a worker TRA based on the worker’s failure to meet a deadline or to deny other TAA benefits due to missed deadlines (Additional TRA, Job Search Allowances, Relocation Allowances). • Equitable Tolling is available for those under the 2002, 2009 and 2011 Programs • A 45 day EC must be submitted and approved prior to Equitable Tolling being approved.

19. Equitable Tolling • Length of Time Allowed: • Training for TRA purposes • Start on date person knew or should have known + the later of the last day of the 8th week or 56 days • Additional TRA • Start on date person knew or should have known + 210 days • Job Search Allowances • Start on date person knew or should have known + 365 days OR if participated in TAA approved training + 182 days from the end date of training • Relocation Allowances • Start on date person knew or should have known + 425 days OR if participated in TAA approved training + 182 days from the end date of training

20. Waivers from Training*For 2011: Initial Waiver is in effect for 90 days-it must then be reviewed every 30 days thereafter

21. Training2011 TAAEA Updates • Training programs are approvable for a total of 130 weeks • Incumbent training is still approvable • Part-time training is allowable but a person will not be eligible for TRA cash benefits while attending part-time • Although Remedial TRA no longer exists for those that choose 2011, Remedial training is still approvable for all eligible participants • New Reasonable Costs: • Remedial Training: $10,000 • Occupational Training: $20,000 • Degree Programs: $28,000 • MAX (including travel, subsistence, etc.): $35,000 • These costs are for ALL TAA Participants, regardless of petition number

22. TRA

23. Elimination of Remedial TRA • The TAAEA eliminates Remedial TRA as a “type” of TRA. • Remedial and Prerequisite training should continue to be a part of an approved training plan, but the inclusion of these training types will no longer result in the worker being eligible for an additional 26 weeks of “Remedial TRA” under 2011 rules.

24. Introduction of Completion TRA • Completion TRA provides participants with up to 13 additional weeks of TRA within a 20 week period in order to complete their training plan • This new category of TRA aligns with the Department’s larger aim to increase the completion of recognized credentials… • 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; AND • The worker is participating in training each week; AND • The worker has met the performance benchmarks established in the approved training plan; 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

25. Training Benchmarks • Must be established at the beginning of all training programs longer than 3 months • REQUIRED for Completion TRA eligibility • Reviews will be conducted at 60 day intervals from the start of the training plan • This will strengthen case management efforts • Usage of TORQ in Career Centers • Benchmarks will be documented in an IEP/CDP and signed by the participant • Encourages early intervention and modification of unsuccessful training plans • Modifications can increase training completion and credential attainment • Modifications can include: tutoring, changing from a degree to certificate, etc.

26. RTAA • RTAA is available to older workers under the 2011 Program • The following rules apply: • Must be aged 50 or over at time of reemployment • Worker cannot earn more than $50,000 at new employment • Maximum benefit amount is $10,000 • NO 26 week deadline for reemployment • Workers can combine training/TRA benefits with RTAA

27. Job Search and Relocation Allowances • The 2011 Program reverts to the 2002 rules as follows: • Job Search: • 90% of allowable costs, up to $1,250 • Relocation: • 90% of allowable and reasonable costs • Provides an additional lump sum payment of up to $1,250

28. Health Coverage Tax Credit (HCTC) Please note that as of January 1, 2014 The tax credit will NO longer be available. • HCTC will cover 72.5% of qualifying health insurance premium costs • The same tax credit will be offered to all TAA participants regardless of their petition number • The 72.5% is retroactive and applies to payments made from March-December 2011 • The retroactive payments can be claimed by participants on their tax return for 2011, filed in 2012

29. Sunset Provisions • 2011 Amendments sunset on December 31, 2013 • The TAA Program will revert back to the provisions of the 2002 Amendments except for three provisions of the TAAEA: • The elimination of 3 training waivers • The elimination of additional weeks of TRA for remedial or prerequisite training • The authority to grant 13 weeks of Completion TRA • The “reverted TAA program” is authorized from January 1, 2014 through December 31, 2014.

30. Finishing Up… • “Pick the Program” Worksheet • Please take 10 minutes and fill out an evaluation to let us know how we did!