Like all states, Montana paid a significantly higher level of unemployment insurance (UI) benefits this past year due to the economic recession.  Montana's UI rate schedule will see premium adjustments in calendar year 2010 due to the increased amount of benefits paid.   

 

"UI benefit payments have provided a critical financial safety net for Montana's unemployed workers, while at the same time are helping to sustain local businesses and communities, said Labor Commissioner Keith Kelly.

 

Legislation initially passed in 1979 requires this automatic rate adjustment. The rates have shifted among schedules more than 10 times since the law was passed.  There are 11 schedules as provided by law and the rates are moving to schedule 5.

 

The contribution rates in 2010 will average 1.92%, as compared to 1.12% in 2009. A statutory formula is used to determine employer contribution rates each calendar year. Employers will receive notice of their 2010 UI rates in mid-December.

 

For the past 10 years, Montana's rates were at the lowest rate schedule due to a healthy trust fund balance and low levels of unemployment.   As a result of unemployment benefits paid out this past year, 2010 contribution rates will begin restoring the state Unemployment Trust Fund.  Once the fund is restored employer rates will revert to lower schedules, as outlined in state law.

 

The Montana UI Trust Fund is one of the most solvent in the nation.  Currently 25 states have depleted their states trust funds and have borrowed from the federal trust fund to pay ongoing benefits.   The U.S. Department of Labor projects up to 41 states could be borrowing by the end of calendar year 2010.   Montana is not projected to have to borrow to pay benefits because of its sound trust fund reserves and rate structure.

 

Individual employer rate information will be available in mid-December.  Links: General information on UI rates