The U.S. Department of Labor outlined what happens with federal jobless benefits, due to sequestration, in a 2.5 hour conference call with states Friday afternoon.
Department of Workforce Development Spokesman Joe Frank says Indiana will not cut long term federal jobless benefits, but they will be reduced.
Beginning March 31st, those on longterm benefits will have them cut by 10.7-percent. If states cannot implement the changes by April 28th the reduction increases to 12.8-percent, by June 2nd it’s 16.8-percent, and June 20th it’s 22.2-percent.
He says it’s not known how long, or how much money it will take to implement the changes.
Frank says overpayments will not be charged to the states in most cases. Each state gets 40-thousand dollars to implement sequestration, which Frank says is very important because there will be the need for computer programming notifications, and a lot of administrative costs associated with sequestration.
Other funding will be reduced as well. Frank says funding will be cut for administrating federal extended benefits by 5.1-percent. Re-employment assistance, which is the requirement when somebody gets on federal extended benefits, the federal government provides some funding, that will be reduced by 10.1-percent. All states are affected equally.