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U.S. Code as of:
01/19/04
Section 1104. Unemployment Trust Fund
(a) Establishment
There is hereby established in the Treasury of the United States
a trust fund to be known as the "Unemployment Trust Fund",
hereinafter in this subchapter called the "Fund". The Secretary of
the Treasury is authorized and directed to receive and hold in the
Fund all moneys deposited therein by a State agency from a State
unemployment fund, or by the Railroad Retirement Board to the
credit of the railroad unemployment insurance account or the
railroad unemployment insurance administration fund, or otherwise
deposited in or credited to the Fund or any account therein. Such
deposit may be made directly with the Secretary of the Treasury,
with any depositary designated by him for such purpose, or with any
Federal Reserve Bank.
(b) Investments
It shall be the duty of the Secretary of the Treasury to invest
such portion of the Fund as is not, in his judgment, required to
meet current withdrawals. Such investment may be made only in
interest-bearing obligations of the United States or in obligations
guaranteed as to both principal and interest by the United States.
For such purpose such obligations may be acquired (1) on original
issue at the issue price, or (2) by purchase of outstanding
obligations at the market price. The purposes for which obligations
of the United States may be issued under chapter 31 of title 31 are
hereby extended to authorize the issuance at par of special
obligations exclusively to the Fund. Such special obligations shall
bear interest at a rate equal to the average rate of interest,
computed as of the end of the calendar month next preceding the
date of such issue, borne by all interest-bearing obligations of
the United States then forming part of the public debt; except that
where such average rate is not a multiple of one-eighth of 1 per
centum, the rate of interest of such special obligations shall be
the multiple of one-eighth of 1 per centum next lower than such
average rate. Obligations other than such special obligations may
be acquired for the Fund only on such terms as to provide an
investment yield not less than the yield which would be required in
the case of special obligations if issued to the Fund upon the date
of such acquisition. Advances made to the Federal unemployment
account pursuant to section 1323 of this title shall not be
invested.
(c) Sale or redemption of obligations
Any obligations acquired by the Fund (except special obligations
issued exclusively to the Fund) may be sold at the market price,
and such special obligations may be redeemed at par plus accrued
interest.
(d) Treatment of interest and proceeds
The interest on, and the proceeds from the sale or redemption of,
any obligations held in the Fund shall be credited to and form a
part of the Fund.
(e) Separate book accounts
The Fund shall be invested as a single fund, but the Secretary of
the Treasury shall maintain a separate book account for each State
agency, the employment security administration account, the Federal
unemployment account, the railroad unemployment insurance account,
and the railroad unemployment insurance administration fund and
shall credit quarterly (on March 31, June 30, September 30, and
December 31, of each year) to each account, on the basis of the
average daily balance of such account, a proportionate part of the
earnings of the Fund for the quarter ending on such date. For the
purpose of this subsection, the average daily balance shall be
computed -
(1) in the case of any State account, by reducing (but not
below zero) the amount in the account by the balance of advances
made to the State under section 1321 of this title, and
(2) in the case of the Federal unemployment account -
(A) by adding to the amount in the account the aggregate of
the reductions under paragraph (1), and
(B) by subtracting from the sum so obtained the balance of
advances made under section 1323 of this title to the account.
(f) Payment to State agencies and Railroad Retirement Board
The Secretary of the Treasury is authorized and directed to pay
out of the Fund to any State agency such amount as it may duly
requisition, not exceeding the amount standing to the account of
such State agency at the time of such payment. The Secretary of the
Treasury is authorized and directed to make such payments out of
the railroad unemployment insurance account for the payment of
benefits, and out of the railroad unemployment insurance
administration fund for the payment of administrative expenses, as
the Railroad Retirement Board may duly certify, not exceeding the
amount standing to the credit of such account or such fund, as the
case may be, at the time of such payment.
(g) Federal unemployment account; establishment
There is hereby established in the Unemployment Trust Fund a
Federal unemployment account.
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