Definition
The term Extended Benefits refers to join federal-state programs that provide income continuation to individuals that have exhausted their unemployment assistance. Extended Benefits may provide thirteen to twenty weeks of additional unemployment compensation.
Explanation
Most state level unemployment compensation programs provide income to qualifying individuals for up to 26 weeks. When unemployment is relatively high, the federal government may elect to extend the duration of those benefits. Extended Benefits (EB) are based on the current unemployment rate, and this is a separate program from Emergency Unemployment Compensation (EUC), which can only be extended by Congress.
As is the case with EUC, Extended Benefits are offered to qualifying individuals that have exhausted the unemployment insurance benefits offered through their state. The weekly income received from this federal program will be equal to that received through their state program.
Extended Benefits are offered under certain conditions, including:
A state's Insured Unemployment Rate (IUR) must be at least 5%, and the current IUR must be greater than 120% of the IUR in each of the prior calendar years. This means the insured unemployment rate must be at least 5%, and it must be increasing over a two year timeframe.
A state can also choose a total unemployment rate (TUR) trigger of 6.5%, and the current TUR must be greater than 110% of either or both of the prior two years. Under these conditions, Extended Benefits would be offered for up to 13 weeks. If a state's TUR is in excess of 8% and the current TUR is greater than 110% of either or both of the prior two years, then Extended Benefits would be offered for up to 20 weeks.
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