Trade Adjustment Assistance Extension Act Reversion 2014 (2014-R)

1. Trade Adjustment Assistance Extension Act Reversion 2014 (2014-R) Deval L. Patrick, Governor Rachel Kaprielian, Secretary Alice Sweeney, 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. 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 (TAARA) • In 2009 it was amended through the Trade and Globalization Adjustment Assistance Act of 2009 (TGAAA) • The latest amendment was in 2011 through the Trade Adjustment Assistance Extension Act of 2011(TAAEA) • As of January 1, 2014, the TAAEA’s Sunset Provisions began and implemented Reversion 2014 (2014-R)

5. What is the TAA Program? The TAA program offers a variety of benefits and services to eligible workers including:

6. Petitions Under the Current Rules

7. Reversion 2014 • Enactment: • Reversion 2014 -the Sunset Provisions of the 2011 TAAEA Amendments which were implemented January 1, 2014. These provisions called Reversion 2014 change both the certification requirements for petitions filed January 1, 2014 and the benefits available to workers covered under these petition certifications. *Coded in MOSES as (2014-R) • Benefits and services under Reversion 2014 are effective as of January 1, 2014 through December 31, 2014 • The TAA program will administer four distinct sets of rules for the 2002, 2009, 2011 and Reversion 2014

8. Important Dates • December 31, 2013 • End of the Trade Adjustment Assistance Extension Act of 2011 (TAAEA of 2011) • Health Care Tax Credit (HCTC) ended • January 1, 2014 • As of January 1, 2014, the TAAEA’s Sunset Provisions take place implementing Reversion 2014 (2014-R) • December 31, 2014 • Reversion 2014 ends

9. Key Changes of the 2014-R • Incumbent worker training - Adversely affected incumbent workers are not eligible for TAA benefits and services (workers must be separated from adversely affected employment) • State and Federal Good Cause – These provisions are no longer available, but states may apply Equitable Tolling of deadlines consistent with the TEGL No. 08-11 to extend deadlines in egregious circumstances. (In order to apply for Equitable Tolling, one must have an approved Extenuating Circumstances extension) • Justifiable Cause – No longer available. Can no longer extend the period in which TRA can be paid (per TEGL No. 22-08, Section C.6.2) • Health Coverage Tax Credit (HCTC)- No longer available as of January 1st 2014. • Earnings UP TO TRA WBA– No longer allowed to earn up to 100% of your WBA (due to full time training requirement and no provision for part time training allowed under REVERSION 2014): hence no earnings disregard allowance (which was previously incorporated by TGAAA and TAAEA). May only earn up to 1/3 of your WBA. • Election of TRA or UI– No option available for filing for TRA or UI subsequent benefits. All TRA requires the exhaustion of all UI entitlement.

10. Key Changes of the 2014-R • Deadline- Training must be approved by the latter of 8 weeks from date of petition certification; or 16 weeks from worker’s most recent total separation • Training – Only full time training can be approved • Employment and Case Management - Funds are not provided; States are required to “make every reasonable effort,” to provide case management services through co-enrollment in ES, WIA, NEG or other partner programs • ATAA - Wage subsidies for older workers under RTAA are no longer available, ATAA is restored. • Special Rule for Military- Military Service Deadline Extension is no longer available (returning members of the Armed Forces and National Guard units could be determined ineligible for benefits if, for example, they missed the enrollment in training deadlines as a condition of TRA eligibility, or if the plant at which they worked closed while they were away on active duty)

11. A Closer Look at Trade Benefits

12. Deadlines • Watch out for those deadlines! What can be done to help the customer avoid missing their deadlines? 8/16 Weeks TRA 8 weeks after certification or 16 weeks after separation 26 Weeks ATAA Reemployed within 26 weeks of separation 365 Days Job Search Allowance Apply 365 days from separation/certification or 6 months after training 425 Days Relocation Allowance Apply 425 days from separation/certification or 6 months after training

13. 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 suitably reemployed.

14. 6 Criteria for Approval of Training • There is no suitable employment (which may include technical and professional employment) available for the adversely affected worker. • The worker would benefit from appropriate training. • There is a reasonable expectation of employment following completion of such training. • Training approved by the Secretary is reasonably available to the worker from either governmental agencies or private sources. • The worker is qualified to undertake and complete such training. • Such training is suitable for the worker and available at a reasonable cost.

15. TrainingUnder Reversion 2014 • Training programs are approvable for a total of 130 weeks • Incumbent training isNOT allowable • Participant must attend FULL TIME training • Although Remedial TRA no longer exists, Remedial training is still approvable for all eligible participants • 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

16. Training-Related Costs • Allowable • All tuition & fees; • Training Materials (books, uniforms, basic supplies, equipment) • Basic supplies (pens, papers, pencils) *Workforce Issuance Policy No. 10-45 • 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

17. Training Benchmarks • Must be established at the beginning and is required of all training programs longer than 3 months • REQUIRED for Completion TRA eligibility (under 2011 and 2014-R) • Reviews will be conducted at 60 day intervals from the start of the training plan • This will strengthen case management efforts • 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.

18. Training Comparison Matrix

19. TRUE or FALSE Part Time training is allowed under Reversion 2014. Training Benchmarks must be established at the beginning of all training programs longer than 3 months.

21. Trade Readjustment Allowances (TRA) • Trade Readjustment Allowances (TRA) is income support (up to 130 week)for individuals enrolled in full-time training within 8/16 weeks of trade related layoff or certification (respectively), whichever is later • There are three types of TRA: Basic TRA, Additional TRA, and Completion TRA.

22. TRA Eligibility Requirements Under Reversion 2014 • An individual must… • Meet the 8/16 week deadline • 8 weeksfrom the date of the petition certification; OR • 16 weeksfrom the worker’s most recent total separation from adversely affected employment • Have 26 weeks of employment at the Trade-certified company earning $30 or more • Be eligible for UI based on separation from Trade-certified company • Have exhausted all UI (on initial claim) • Be enrolled in TAA-approved training or have an approved waiver from training • Accept suitable work, actively seek work, be referred to suitable work

23. Maximum TRA Under Reversion 2014

24. Remember! • The total amount of Basic TRA available will be calculated by: multiplying your UI weekly benefit amount by 52 and subtracting the total sum of UI received. Therefore, if you have already received at least 52 weeks of UI generally you will not be eligible to receive any Basic TRA.

25. 2014 Program Benefits: TRA Timeline

26. TRA Benefits Matrix

27. Completion TRA • Completion TRA aligns with the Department’s larger aim to increase the completion of recognized credentials • provides participants with up to 13 additional weeks of income support while in full time training • must be applied for within the last 20 weeks of training • 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

28. Completion TRA Eligibility Period • While there are 13 weeks of Completion TRA payable to eligible TAA participants, these 13 weeks can be collected within a 20 week timeframe as long as the approved training will be completed within the 20 weeks. • This 20 week time frame will begin with the first week in which a TAA participant files a claim for Completion TRA and not automatically at the end of Additional TRA. • If a participant has exhausted all other UI and TRA benefits, but will not be able to complete approved training within the allowable 20 week period, none of the 13 weeks of Completion TRA are able to be paid.

29. Knowledge Check How many types of TRA benefits may a participant potentially collect throughout their training period? 3 • Basic • Additional • Remedial/Completion If a participant’s training ends in 25 weeks, would they be eligible to claim Completion TRA? Elaborate… NO • Maximum of 13 weeks payable in the last 20 weeks of training

31. Extenuating Circumstances (EC) • The Extenuating Circumstances (EC) extension extends the 8/16 week deadlines by an additional 45 days. • “Extenuating Circumstances” must be circumstances beyond the control of the worker. • The “Secretary” determines if there are extenuating circumstances that justify an extension in the enrollment period – the state acts as the Secretary in this case.

32. Extenuating Circumstances (EC) • There is no single, universally endorsed definition of “extenuating”. • In general, the situation must be beyond the individual’s immediate control and must be unusual and/or infrequent, unexpected, and significantly disruptive. Examples include: • Hospitalization • Family bereavement • Incarceration • Domestic displacement • Etc.

33. Equitable TollingMay apply to all TAA customers • Equitable Tolling of a deadline may only apply in egregious circumstances where an individual acted with due diligence to meet the deadline. • Equitable Tolling should be applied in situations where it would be manifestly unfair to deny a worker TRA • Benefits that can be Equitably tolled: Training (TRA purposes), Additional TRA, Job Search Allowances, Relocation Allowances • A 45 day EC must be submitted and approved prior to Equitable Tolling being approved.

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

35. Training Waivers Allowed Under Reversion 2014 • 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.

36. Waivers from Training For 2014-R: Waivers are to be submitted and reviewed every 30days

37. Case Study Exercise • Danny Dante worked for Management Operation LLC from 2/25/1995 – 1/03/2014. The company was trade certified on 04/15/2014. The career counselor submitted a Training package for the Six Sigma Green Belt Certification on 4/29/2014. Classes will start 7/5/2014 and end 8/20/2014. As of 05/01/2014, the 1666 determination is still “pending”. The TRA deadline is 6/10/2014. Question 1 Can this training be approved? Elaborate … NO… The training can be submitted for review but cannot be approved as the determination for TAA benefits (1666) is still pending. As of today 05/02/2014, the 1666 was approved. Question 2 Can this training be approved? YES

38. Case Study Exercise • Danny Dante worked for Management Operation LLC from 2/25/1995 – 1/03/2014. The company was trade certified on 04/15/2014. The career counselor submitted a Training package for the Six Sigma Green Belt Certification on 4/29/2014. Classes will start 7/5/2014 and end 8/20/2014. As of 05/01/2014, the 1666 determination is still “pending”. The TRA deadline is 6/10/2014. Question 3 Is the client eligible to receive Trade Readjustment Allowance (TRA)? NO ….however if there is an APPROVED Enrollment Unavailable waiver (Moses:Training starts beyond 30 days)Client will be eligible for TRA Question 4 Are benchmarks required for this client? NO … training is less than 3 months (90 days)

39. Return of Alternative Trade Adjustment Assistance (ATAA) • Following the Sunset Provisions for Reversion 2014, RTAA is replaced by ATAA • The following rules apply: • Requires separate group certification (at the time of filing a Petition) • Must be at least age 50 at time of reemployment • Cannot earn more than $50,000 annually in gross wages • Workers may receive up to $10,000 over the course of the 2 year eligibility period • 26 week deadline for reemployment from date of separation • Not be with the same division/facility from which he/she was separated. • Workers must choose between TRA or ATAA • ATAA participants may not participate in training nor • receive job search allowances

40. Job Search and Relocation Allowances • The 2014 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

41. Remember Key Changes of the 2014-R • Incumbent worker training -No longer available Adversely affected incumbent workers are not eligible for TAA benefits and services (workers must be separated from adversely affected employment) • State and Federal Good Cause – These provisions are No longer available, but states may apply Equitable Tolling of deadlines consistent with the TEGL No. 08-11 to extend deadlines in egregious circumstances. (In order to apply for Equitable Tolling, one must have an approved Extenuating Circumstances extension) • Justifiable Cause – No longer available. Can no longer extend the period in which TRA can be paid (per TEGL No. 22-08, Section C.6.2) • Health Coverage Tax Credit (HCTC)- No longer availableas of January 1st 2014. • Earnings UP TO TRA WBA– No longer allowedto earn up to 100% of your WBA • Election of TRA or UI– No option allowedfor filing for TRA or UI subsequent benefits. All TRA requires the exhaustion of all UI entitlement.

42. Remember Key Changes of the 2014-R • Deadline– Going backto the 8 weeks from date of petition certification; or 16 weeks from worker’s most recent total separation (8/16 weeks) • Training – Only full time training can be Approved • Employment and Case Management - Funds are not available(states are required to “make every reasonable effort,” to provide case management services through co-enrollment in ES, WIA, NEG or other partner programs • ATAA - Is restored Wage subsidies for older workers under RTAA are no longer available, ATAA. • Special Rule for Military- Military Service Deadline Extension is No longer available

43. We would like to thank you for your time! Are there any questions?

44. Contacts • Sherika Thompson – sthompson2@detma.org • Christopher Quan – cquan@detma.org • Maynor Acevedo – macevedo@detma.org