Jobless fund meets its solvency test

Friday, Oct. 1, 2004 | 9:18 a.m.

CARSON CITY -- The state's unemployment trust fund, used to pay benefits to jobless workers, has met its solvency test.

The state Employment Security Division said Thursday the fund has $439.2 million as of the measuring date of Sept. 30. To meet the expected payments to the unemployed next year, the fund was required to have $401.9 million.

The state Employment Security Council meets Oct. 6 in Carson City to make a recommendation on the rates charged employers this coming year to generate enough money to keep the fund solvent.

Employers, depending on the rate of turnover in their company, now pay an average rate of 1.29 percent of a worker's salary. And .05 percent is added for a skills training program for the jobless.

The rates range from 0.25 percent to 5.40 percent for employers. New employers pay 2.95 percent for several years until they get an experience rating.

Cynthia Jones, administrator of the division, will hold a public hearing about 30 days after the council meets to officially set the rates.

Before making its recommendations, the council will review the economic projections and predicted unemployment. The meeting will be televised to the Sawyer State Office Building (Room V4412) in Las Vegas.