July 1st UI Deduction Changes
At the end of Fiscal Year 2020, several AFSCME 3 members reached out about a change in deductions on their most recent pay stubs. On or about July 1st, members noticed that the UI contribution no longer reflected a balance. We confirmed through Cindy Kollner that this change was approved at the July 1st Board of Public Works meeting because the state has a large enough fund balance to pay for claims in the next fiscal year without charging state agencies.
The state self-insures for UI payments and sets a rate sufficient to cover (primary and secondary) claims of state employees who lose their jobs. For the most part these are secondary claims, so people who lose their jobs after they have left the state. By eliminating this contribution, the state saved approximately $9.3M dollars. We are continuing to closely monitor other changes through the Board of Public Works.
