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SB 495 - Currently, the taxable wage base for calendar year 2010 and each calendar year thereafter shall be determined by the average balance of the unemployment compensation trust fund of the four preceding calendar quarters less federal advances, and principal, interest, and expenses related to credit instruments and financial agreements. If the balance is $350 million or less, the base is increased by $1,000. If it is $650 million or more, it is decreased by $500 not to increase beyond $13,000 or decrease to less than $7,000. This computation is altered so that the base for every other calendar year beginning in calendar year 2010 is increased from the previous base by 10% rounded to the nearest $100 increment. This biennial increase is suspended when the balance in the trust fund reaches an average high cost multiple (as defined by the United States Department of Labor) of .45 or greater and, whereupon the base shall decrease every calendar year by 10% rounded to the nearest $100 increment. The average weekly benefit amount for calendar year 2012 and all years beyond that shall increase by 4%. All contributions and payments in lieu of contributions paid by employers to the unemployment compensation trust fund shall only be deposited in the fund and be used solely for the purposes enumerated in Chapter 288, RSMo. The contribution rate for employers is modified for calendar year 2010 and beyond. Currently, the total amount of outstanding obligations under agreements entered into by the Board of Unemployment Fund Financing in issuing credit instruments shall not exceed the difference of $450 million and the principal amount of outstanding credit instruments. This act removes this provision. Sections 288.121 and 288.122, RSMo that increase and decrease an employer's contribution rate when the balance in the trust fund is under or over certain thresholds are repealed with a delayed effective date of January 1, 2010. CHRIS HOGERTY
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