Sequestration reduces extended unemployment benefits

South Dakota will be reducing extended unemployment compensation (EUC) benefits by 16.8 percent as part of the federal sequestration cuts required by the Budget Control Act of 2011.

This reduction does not impact the 26 weeks of state unemployment benefits. It does affect all claimants filing for EUC benefits beginning the week of June 2, and ending the week of Sept. 28, approximately 275 claimants.

“Individuals will still be eligible for up to 14 weeks of extended benefits,” said State Labor and Regulation Secretary Pam Roberts. “However, it will be a reduced benefit amount for those extended weeks.”

A notice of the upcoming reduction will be mailed to all claimants who have an active EUC claim as of May 13. Amended monetary determinations will be sent the first week of June.

Unemployment insurance provides temporary financial assistance for people who have lost their jobs, through no fault of their own, until they find other employment. South Dakota’s unemployment insurance program is financed by employers through payroll taxes. Workers do not contribute to this plan.

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