A former employee with the Department of Workforce Development allegedly filed more than $34,000 in fraudulent unemployment claims. (Mr Doomits/Adobe Stock)
Legislation nearly halving how long Hoosiers can collect unemployment insurance split a panel of lawmakers on Wednesday — alongside proposals loosening engineer registration requirements and raising certain pension benefits.
The Senate’s Pensions and Labor Committee took only testimony, no votes. Chair Sen. Linda Rogers, R-Granger, repeatedly asked stakeholders to collaborate on solutions.
Workers who become unemployed through no fault of their own can claim unemployment insurance for up to 26 weeks under Indiana law. Senate Bill 123 would slash that to 14 weeks, but offer a two-week extension if claimants are making progress in an approved job training program and are actively job-hunting.
Department of Workforce Development Chief of Staff Joshua Richardson said Indiana’s unemployment insurance system serves a smaller percentage of unemployed people than other states — perhaps because of high eligibility standards or because many Hoosiers choose to forego the pay.
On average, claimants collect 11 and half weeks of benefits, with a low percentage collecting all 26 weeks of benefits, according to Richardson. Many return to work in the first six weeks, he said, with steady returns after, and an uptick as benefits run out.
He and other witnesses said the unemployment insurance system’s low pay already points to a speedy return to work. The state offers about 47% of a claimant’s pay, with a statutory cap of $390 weekly.
“No one can make even half of what they were earning from their work. So there’s a strong incentive to get back to work,” he said.
The Indiana Community Action Poverty Institute, the AFL-CIO’s central Indiana chapter and the Indiana State Building & Construction Trades Council spoke against the bill.
AFL-CIO chapter president Shawn Christ said industries must often pause work due to weather or in economic downturns: “(if) employees are forced to change jobs due to their early exhaustion of benefits, their former employers will lose the investment spent on training.”
Another witness testified the change could help employers.
Natalie Robinson, director of the National Federation of Independent Business’ Indiana chapter, said small firms are still struggling to fill open positions with qualified workers.
Robinson described the legislation as a “necessary and forward-thinking adjustment,” adding that the timespan cut will “emphasize fiscal responsibility.” She called the job training requirements “an innovative provision that rewards proactive engagement” with the Department of Workforce Development.
Lawmakers on both sides of the aisle questioned the need.
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Sen. Rodney Pol, D-Chesterton, said he was “struggling” to see the bill’s value, saying, “It’s not as if we have this broken system in which we’re … hemorrhaging money because of claims.”
The fund has a healthy balance of $1.6 billion, per Richardson, and the agency is aiming for about $2 billion to meet solvency standards. It’s a far cry from the fund’s $2 billion, Great Recession-era deficit.
“I think just keeping it as it is might be the best way to go,” said Sen. Dan Dernulc, R-Highland.
“Right now, where this is, I’m not in favor of it,” he added, but said he’d look at any amendments “with open arms.”
Engineers and pensions
Also up for consideration — but not votes — were bills dealing with the engineering profession and pension benefits.
Senate Bill 101 would let people with at least 25 years of engineering experience take a professional engineer registration exam without meeting requirements like a four-year degree or apprenticeship. They’d have one chance to pass the test.
Skeptics from both parties feared loosened requirements could risk Hoosier health and safety, and prompt other professions to seek similar exemptions. Supportive lawmakers said the legislation simply offers experienced workers the opportunity to take the test.
Senate Bill 388, meanwhile, would increase the basic monthly pension benefit to members of the 1977 Police Officers’ and Firefighters’ Retirement Fund who retire beginning in July following at least 20 years of service.
The move would cost $500 million, prompting worried municipalities to tell the panel that it’s unaffordable, especially as Indiana leaders consider major cuts to local revenue.
Police officers and firefighters said they hoped to increase recruitment and retention, and better take care of members amid tougher economic headwinds.
The Indiana Public Retirement System, which administers the fund, was neutral. But its representatives noted that the benefit bump would lead to significantly higher employer contribution rates, increase the fund’s unfunded liabilities by $353 million, and reduce its funded status by 3.6 percentage points.
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Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
