CT SB00988

Repeals the existing fund balance tax rate requirement for the Unemployment Compensation Trust Fund and replaces it with a new methodology effective October 1, 2011.

Changes the fund balance target from maintaining eight-tenths of one percent of total wages (pre-2012) to maintaining a balance that results in an average high cost multiple greater than or equal to 1.0 starting in calendar year 2012.

Establishes the average high cost multiple calculation as the fund balance on December 30th divided by the average of the three highest calendar benefit cost rates from either the last twenty years or a period including the last three recessions, whichever is longer.

Maintains the maximum assessment rate at one and four-tenths percent for calendar years commencing on or after January 1, 1999, including years 2012 and beyond.

Defines benefit cost rates as benefits paid (including the state's share of extended benefits but excluding reimbursable benefits) as a percentage of total wages in covered employment.