Oregon Statutes 657.459 – Computation of Fund Adequacy Percentage Ratio
(1) For the purpose of computing employer tax rates, the Director of the Employment Department, or the director’s authorized representative, shall compute a ‘Fund Adequacy Percentage Ratio.’ This computation shall be made in September of each year and shall be the ratio of the amount in the Unemployment Compensation Trust Fund, as of August 31 preceding the computation, to a calculated amount of benefits that would be paid during the following calendar year if high unemployment were to occur. The calculated amount of benefits shall be determined as follows:
Terms Used In Oregon Statutes 657.459
- Adjusted average weekly check amount: means the average weekly check amount in a calendar year plus one-half of the increase in the maximum weekly benefit amount plus one-half of the increase in the minimum weekly benefit amount from the week including July 4 immediately preceding such calendar year to the week including July 4 immediately following such calendar year. See Oregon Statutes 657.458
- Average monthly employment: means the total number of persons employed in each month for 12 consecutive months, as reported by employers subject to the tax under this chapter, divided by 12. See Oregon Statutes 657.458
- Average weekly check amount: means the gross amount of benefit payments, excluding extended benefits, made during a 12 consecutive month period, divided by the number of such weekly payments made to all individuals receiving benefits under this chapter during that period. See Oregon Statutes 657.458
- Benefits: means the money allowances payable to unemployed persons under this chapter. See Oregon Statutes 657.010
- employer: means any employing unit which employs one or more individuals in an employment subject to this chapter in each of 18 separate weeks during any calendar year, or in which the employing unit's total payroll during any calendar quarter amounts to $1,000 or more. See Oregon Statutes 657.025
- employment: includes service that is:
(a) Subject to the tax imposed by the Federal Unemployment Tax Act; or
(b) Required to be covered under this chapter as a condition for employers to receive a full tax credit against the tax imposed by the Federal Unemployment Tax Act. See Oregon Statutes 657.030
- High benefit cost period: means the 12 consecutive month period in the last 20 completed calendar years in which the benefit cost rate was the highest. See Oregon Statutes 657.458
(a) Average monthly employment in the calendar year preceding the calculation shall be divided by the average monthly employment in the high benefit cost period with the resulting quotient carried to the fourth decimal place.
(b) The adjusted average weekly check amount for the calendar year preceding the calculation shall be divided by the average weekly check amount in the high benefit cost period with the resulting quotient carried to the fourth decimal place.
(c) The amount of benefits paid during the high benefit cost period and attributable to employers subject to the tax shall be multiplied by the quotient determined in paragraph (a) of this subsection. The resulting product shall be multiplied by the quotient determined in paragraph (b) of this subsection. All benefits paid from the Unemployment Compensation Trust Fund attributable to employers subject to the tax, including but not limited to the Oregon share of extended benefits and any special state additional benefits, shall be included in the amount of benefits under this subsection.
(2) The amount in the Unemployment Compensation Trust Fund, as of August 31 preceding the computation, shall be divided by the final product determined in subsection (1)(c) of this section. The quotient obtained shall be expressed as a percentage and is the ‘Fund Adequacy Percentage Ratio’ used to determine the applicable schedule of Table A of ORS § 657.462 to be in effect for the succeeding calendar year.
(3) Notwithstanding the provisions of subsection (2) of this section, if the product obtained by multiplying 3.0 times the average monthly employment in the calendar year preceding the calculation times the adjusted average weekly check amount for the calendar year preceding the computation exceeds the amount determined in subsection (1)(c) of this section, such product shall be used in lieu of the amount determined in subsection (1)(c) of this section in the Trust Fund Adequacy Ratio calculation in subsection (2) of this section.
(4) Products obtained in subsections (1) and (3) of this section shall be rounded to the nearest dollar. [1969 c.157 § 3 (657.458 and 657.459 enacted in lieu of 657.461); 1971 c.463 § 16; 1975 c.354 § 2; 1977 c.538 § 4; 1983 c.508 § 10; 2005 c.22 § 462; 2005 c.183 § 7]
[Repealed by 1959 c.606 § 4]
[1967 c.434 § 5 (enacted in lieu of 657.464) repealed by 1969 c.157 § 1 (657.458 and 657.459 enacted in lieu of 657.461)]