Unemployment insurance employers pay into a technology upgrade fund

The secretary would administer a separate fund for improving unemployment insurance technology, program integrity, and service delivery. The fund supports programs administered by the Office of Unemployment Insurance. Technology spending must be coordinated with and approved by the Commonwealth Office of Technology. The secretary must provide an annual report listing the fund's receipts and spending. Fund money must be invested so it can be converted to cash when needed. The supplied text does not state a separate effective date for these fund administration rules.

Unemployment insurance rates would be reduced under stated formulas, while contributing employers would pay the same reduction percentage into the service capacity upgrade fund. The rules apply to rates established for contributing employers under KRS 341.270 and 341.272, and to those employers' taxable wages. Through December 31, 2026, the reduction is 0.075% only if the unemployment insurance trust fund exceeds its December 31, 2017, balance. Starting January 1, 2027, the secretary would set the yearly reduction, capped at 0.025%. The secretary must suspend the reduction when the upgrade fund reaches $15 million or when the trust fund does not exceed its December 31, 2022, balance. The secretary may further reduce or suspend the rate reduction or employer payments. The first stated rate rule runs from October 1, 2018, through December 31, 2026; the next rule begins January 1, 2027, with the secretary setting the adjustment for each following year.