Jobless benefits’ fund seen as healthy

Tuesday, Oct. 3, 2000 | 11:07 a.m.

CARSON CITY -- Nevada's unemployment trust fund, which pays weekly benefits to the jobless, has reached $505 million and has passed the state's solvency test.

That's good news for the more than 40,000 employers who pay premiums into the trust fund. It probably means the low rates approved for this year will remain in effect.

Every Sept. 30, the state Employment Security Division must conduct a test of the money in the trust account. This year, the amount required was $347.6 million, according to the state Division of Research and Analysis. That test is based on the "worst case scenario" in unemployment in the last 10 years and the need for a reserve to pay those who lose their jobs.

The state Employment Security Council, composed of lay persons, meets Oct. 16 in Reno to review the fund and the forecasts for the future of the economy. It will then make a recommendation on the rates for employers. At present employers pay an average 1.29 percent on the wages of their workers. That rate is the lowest since 1992 and is attributed to a growing economy.

The council's recommendation goes to Birgit Baker, director of the state Department of Employment Security who will hold a public hearing in November and then adopt a rate. The director has traditionally followed the recommendation of the council.

Laid-off workers can now receive a maximum of $291 a week for 26 weeks. Gary Lundstrum, economist for the research and analysis division, said the average weekly payment for the past 12 months has been $222 and the average duration of unemployment was 13 weeks.

The $505 million is just below the prediction of $511 million made last year that would be in the fund on Sept. 30.

The 1.29 percent rate is the average. The actual rate paid by employers depends on worker turnover. And the rates range from a low of 0.25 percent to a high of 5.4 percent based on the pay of the worker.