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Tennesseans receiving benefits through the federal Emergency Unemployment Compensation Program will see a 4.4 percent reduction in their benefits starting this week.
Benefits received under the state’s unemployment compensation program, generally the first 26 weeks (maximum) of available benefits, will not be reduced.
The reduction is required through the federal Budget Control Act of 2011, also known as “sequestration.”
To meet the federal requirement for sequestration for fiscal year 2014, Tennessee must reduce all emergency unemployment compensation benefits paid on or after Oct. 5.
Unemployment compensation claims that were mid-tier as of Oct. 5 will continue at the same weekly amount until the current tier ends.
All new claims, as well as those that transition to a new tier as of Oct. 5 or later, will be reduced by 4.4 percent.
The reduction affects an estimated 20,000 Tennessee claimants currently receiving emergency unemployment compensation or transitioning into the federal program from Tennessee Unemployment Compensation.
Claimants are being notified of the reduction during their weekly Internet or telephone certification.