60.2-533 - Fund balance factor. - Virginia Statutes

§ 60.2-533. Fund balance factor.

A. As of July 1 of each calendar year, a fund balance factor, rounded to thenearest one-tenth of a percent, shall be determined as follows:

The net assets which shall be compared with the "adequate balance" asdetermined in subsection B of this section, shall be comprised of the balancewhich shall stand to the credit of the account of the Commonwealth ofVirginia in the Unemployment Trust Fund in the Treasury of the United States;amounts withdrawn therefrom but not expended; employer payments not yettransferred to such account; net employer taxes receivable; and amounts duefrom claimants and other states, minus payables due to claimants, employers,other funds of the Virginia Employment Commission, and other states. Theresulting percent shall be termed the "fund balance factor," except that ifthe percent determined is less than fifty percent, the fund balance factorshall be fifty percent.

B. As of July 1 of each calendar year, the Commission shall determine the"adequate balance" for the trust fund as follows:

For the twenty-year period ending July 1 of the year of determination, thehighest ratios of benefits divided by total wages of three separateconsecutive four-quarter periods shall be averaged and multiplied by 1.38 todetermine the fund adequacy multiplier. The fund adequacy multiplier shall bemultiplied by the total wages for the year in question to determine the"adequate fund balance" for that year.

C. A fund building rate of two-tenths percent shall be added to allexperience rating rates established pursuant to § 60.2-531, and to allassigned tax rates established pursuant to §§ 60.2-515, 60.2-526, 60.2-527and 60.2-538, except that such rate shall not be applied if the fund balancefactor determined pursuant to subsection A of this section exceeds fiftypercent.

(1981, c. 606, § 60.1-85.1; 1986, c. 480; 1993, c. 249; 1996, c. 305; 1997,cc. 530, 674.)