(a) (1) The balance sheet for the Unemployment Insurance Fund that the Secretary includes in the annual report shall include, if possible, a reserve against liability in future years to pay benefits in excess of the then current contributions.

(2) A reserve under this subsection shall be set up by the Secretary in accordance with accepted actuarial principles on the basis of statistics of employment, business activity, and other relevant factors for the longest possible period.

(b) Whenever the Secretary believes that a change in rates of contributions or benefits will become necessary to protect the solvency to the Unemployment Insurance Fund, the Secretary promptly shall inform the Governor and legislature and make recommendations with respect to the change.