THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MURT, CREIGHTON, GRELL, GROVE, HARRIS, HORNAMAN, LAWRENCE, MILNE, MOUL, SWANGER, TOEPEL, TRUITT AND VULAKOVICH, JUNE 4, 2012

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JUNE 4, 2012  

AN ACT

Amending the act of December 5, 1936 (2nd Sp.Sess., 1937

P.L.2897, No.1), entitled "An act establishing a system of

unemployment compensation to be administered by the

Department of Labor and Industry and its existing and newly

created agencies with personnel (with certain exceptions)

selected on a civil service basis; requiring employers to

keep records and make reports, and certain employers to pay

contributions based on payrolls to provide moneys for the

payment of compensation to certain unemployed persons;

providing procedure and administrative details for the

determination, payment and collection of such contributions

and the payment of such compensation; providing for

cooperation with the Federal Government and its agencies;

creating certain special funds in the custody of the State

Treasurer; and prescribing penalties," further providing for

rate and amount of compensation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 404(d)(1) and (1.1) of the act of

December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as

the Unemployment Compensation Law, amended June 20, 2011

(P.L.16, No.6), is amended to read:

Section 404.  Rate and Amount of Compensation.--Compensation

shall be paid to each eligible employe in accordance with the

following provisions of this section except that compensation

payable with respect to weeks ending in benefit years which

begin prior to the first day of January 1989 shall be paid on

the basis of the provisions of this section in effect at the

beginning of such benefit years.

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(d)  (1)  Notwithstanding any other provisions of this

section each eligible employe who is unemployed with respect to

any week ending subsequent to July 1, 1980 shall be paid, with

respect to such week, compensation in an amount equal to his

weekly benefit rate less the total of (i) the remuneration, if

any, paid or payable to him with respect to such week for

services performed which is in excess of his partial benefit

credit, (ii) vacation pay, if any, which is in excess of his

partial benefit credit, except when paid to an employe who is

permanently or indefinitely separated from his employment and

(iii) the amount of severance pay that is attributed to the

week.

(1.1)  For purposes of clause (1)(iii), all of the following

apply:

(i)  "Severance pay" means one or more payments made by an

employer to an employe on account of separation from the service

of the employer, regardless of whether the employer is legally

bound by contract, statute or otherwise to make such payments.

The term includes an amount received as consideration for or in

settlement or release of claims arising from the early

termination of an employment contract. The term does not include

payments for pension, retirement or accrued leave or payments of

supplemental unemployment benefits.

(ii)  The amount of severance pay attributed pursuant to

subclause (iii) shall be:

(A)  For an amount received as consideration for or in

settlement or release of claims arising from the early

termination of an employment contract, one hundred per centum

(100%) of the amount.

(B)  For other types of severance pay, an amount not less

than zero (0) determined by subtracting forty per centum (40%)

of the average annual wage as calculated under subsection (e) as

of June 30 immediately preceding the calendar year in which the

claimant's benefit year begins from the total amount of

severance pay paid or payable to the claimant by the employer.

(iii)  Severance pay is attributed as follows:

(A)  Severance pay is attributed to the day, days, week or

weeks immediately following the employe's separation.

(B)  The number of days or weeks to which severance pay is

attributed is determined by dividing the total amount of

severance pay by the regular full-time daily or weekly wage of

the claimant.

(C)  The amount of severance pay attributed to each day or

week equals the regular full-time daily or weekly wage of the

claimant.

(D)  When the attribution of severance pay is made on the

basis of the number of days, the pay shall be attributed to the

customary working days in the calendar week.

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Section 2.  This act applies to initial claims filed on or

after July 1, 2012.

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