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Verbatim: Fed unemployment to be cut 10.7%, beginning March 31

Statement as issued Friday by Indiana Department of Workforce Development :

INDIANAPOLIS – This afternoon the Indiana Department of Workforce Development received much-needed guidance from the US Department of Labor on how the sequester will affect Federally Extended unemployment. This information is vital to providing long-term unemployed Hoosiers the certainty they need to plan for an already uncertain time. According to verbal guidance given from the US Department of Labor, Federally Extended benefits will continue unchanged until Saturday, March 30, 2013.

Beginning March 31, 2013, states are mandated to begin reducing federally extended weekly benefits by 10.7%. If states cannot implement changes by that date, the amount of the reduction will continue to increase as time passes. States will be required to notify claimants, including post mail, at least 15 days in advance of the upcoming reductions.

USDOL also provided guidance that overpayments would not be charged to states or its claimants in most cases.

States will receive $40,000 from the federal government to implementation the effects of sequestration, which includes computer reprogramming, notification and all other associated administrative costs.

USDOL officials also confirmed written guidance will be forwarded to states next week and further clarification will follow.

Indiana appreciates USDOL’s guidance on the implementation of the forthcoming reductions.

The Indiana Department of Workforce Development will release additional information as it becomes available.

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