U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEUM

ISSUE DATE

May 13, 1991

RESCISSIONS

None

EXPIRATION DATE

May 31, 1992

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 25-91
 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES
 

FROM

:

DONALD J. KULICK
Administrator
for Regional Management
 

SUBJECT

:

Interest Rate on Title XII Advances During Calendar Year 1991

  1. Purpose. To announced the rate of interest the U.S. Treasury Department will charge on Title XII advances during calendar year 1991.

  2. Background. The criteria for establishing the rate of interest to be charged on Title XII advances during any calendar year are in Section 1202(b)(4) of the Social Security Act.

  3. Calendar Year 1991 Interest Rate. The U.S. Treasury Department has announced that the rate of interest to be charged for calendar year 1991 is 8.60 percent.

  4. Action Required. SESAs anticipating the need for interest-bearing Title XII advances during 1991 should take necessary action to establish a mechanism to provide funds for the payment of such interest in accordance with the provisions of Section 1202(b) of the Social Security Act, and subject to the limitations in Sections 303(c)(3) and 1202(b)(5) of the Social Security Act and Section 3304(a)(17) of the Federal Unemployment Tax Act.

  5. Inquiries. Direct questions to the appropriate Regional Office.