Relief for Workers, Employers, Retirees & Families Impacted by Hurricane Katrina 

September 28, 2005

Hurricane Katrina disrupted the livelihoods of tens of thousands of residents in the Gulf Coast region, and Congress has responded in quick, decisive fashion.  Through both legislative initiatives and administrative action by the federal government, congressional leaders and their federal partners are working to cut through bureaucratic red tape to ensure that workers, employers, retirees, and their families in the affected areas have access to immediate assistance.  Congress’ primary concern is to enable families in the Gulf Coast region to focus on putting their lives back together, and that mission will guide members in the weeks and months ahead.

IMMEDIATE RELIEF – LEGISLATIVE ACTION

• On September 8, 2005, the House approved the TANF Emergency Response & Recovery Act (H.R. 3672) without opposition.  President Bush signed the bill into law on September 20, 2005.  The legislation adds additional funds and flexibility to the federal Temporary Aid to Needy Families (TANF) grant program, which provides financial resources to residents in need of temporary economic assistance.  Specifically, it would provide a 20 percent increase in TANF funds for states impacted by Hurricane Katrina and waives federal work requirements and time limits for Gulf Coast residents in need of short-term TANF benefits as a result of the hurricane.

• On September 20, 2005, the House approved the Flexibility for Displaced Workers Act (H.R. 3761), a measure to significantly expand the flexibility of National Emergency Grants (NEGs) for Gulf Coast workers with the goal of making more jobs and training available to individuals more quickly.  President Bush signed the bill into law on September 23, 2005.  Specifically, H.R. 3761 makes NEG funds available to displaced workers for employment projects outside the designated Hurricane Katrina disaster area, while allowing displaced workers to obtain public sector jobs not directly related to the disaster.  It also takes the key step of expanding NEG eligibility to displaced individuals who currently are unemployed, as well as those with no prior work history and authorizes NEG payments to Gulf Coast residents not eligible for unemployment compensation or whose unemployment compensation has expired and who are participating in re-employment activities.  Finally, the legislation empowers the Secretary of Labor to extend the duration of the NEG projects from their current six months to 12 months, if necessary.

IMMEDIATE RELIEF – ADMINISTRATIVE ACTION

• On September 12, 2005, the U.S. Department of Labor established the Katrina Recovery Job Connection Website, which is designed to connect workers impacted by the devastation caused by Hurricane Katrina with employers who want to hire them.  It also will support hiring associated with critical clean-up efforts in impacted areas.  The Katrina Recovery Job Connection can be found at http://www.jobserach.org/katrinajobs.

• Within days of Hurricane Katrina, the U.S. Department of Labor awarded $191.1 million in National Emergency Grants (NEGs) to create more than 40,000 temporary jobs for dislocated workers in the region.  The Labor Department has established a 24-hour a day, seven-day a week toll free number (1-866-4-USA-DOL) through which displaced workers can find out how to apply for these jobs.  In addition, the Labor Department is working with state and local governments in impacted areas to issue unemployment insurance and disaster unemployment assistance.

• On September 8, 2005, the U.S. Department of Labor awarded $30.8 million in grants to Alabama, Louisiana, Mississippi, and Texas.  These grants will allow these states to expand their capacity to process claims and expedite unemployment insurance payments for those left unemployed as a result of Hurricane Katrina.

• On August 29, 2005, the U.S. Department of Labor extended the filing deadline for Forms 5500 and 5500 EZ, which are annual reports required by the Employment Retirement Income Security Act.  Each year, pension and welfare benefit plans are generally required to file with the Labor Department an annual report – Form 5500 – about their financial condition, investments, and operations.  The extension – to October 31, 2005 – has been granted both to employers in the affected areas and also to firms located outside the affected areas who are unable to obtain the necessary information from service providers, banks or insurance companies whose operations were directly affected by the hurricane. 

• On September 2, 2005, the Pension Benefit Guaranty Corporation (PBGC) announced next-day direct deposit transfers for beneficiaries in Louisiana, Mississippi and Alabama who have not received their September check.  The PBGC is the federal agency that insures private-sector defined benefit pensions.  PBGC benefit checks for September were issued on Monday, August 29.  Because of emergency conditions in the aftermath of Hurricane Katrina, the U.S. Postal Service ceased mail delivery to numerous Gulf Coast ZIP Codes, leaving approximately 1,400 beneficiaries who normally receive a hard-copy check through the mail without access to their checks.  In order to take advantage of the direct deposit option, benefit recipients may contact PBGC’s Customer Contact Center at 1-800-400-7242 from 9:00 a.m. to 8:00 p.m. central time Monday through Friday.  The missed September benefit payment will be transferred to the beneficiary’s bank account the following business day.  Beneficiaries in the affected region who wish to continue to receive a paper check may have their September benefit delivered to a new or temporary address by calling the Customer Contact Center or by e-mailing the address change to mypension@pbgc.gov.

• On August 31, 2005, the PBGC extended deadlines for certain employer filing requirements, including premium payment filings, plan termination filings, participant notices, reportable events notices, and certain employer reporting for underfunded pension plans.  The relief applies to any plan administrator or plan sponsor located in the affected areas responsible for meeting a PBGC deadline.  The relief also applies to individuals who cannot reasonably obtain information or other assistance needed to meet the deadline from a service provider, bank, or other person whose operations are directly affected by the hurricane.

·         Immediately after Hurricane Katrina struck the Gulf Coast region, the U.S. Department of Health and Human Services (HHS) began streamlining benefits to support those impacted by the hurricane.  Many of these Americans need access to the benefits they received before Hurricane Katrina struck – benefits from programs such as Medicaid, Temporary Assistance for Needy Families, Head Start, and Food Stamps.  Since most evacuees have lost records and legal documents, the federal government will grant special “evacuee" status to streamline and simplify the enrollment process and provide financial assistance to states for the cost of care.  Furthermore, HHS also has released $27 million in Low Income Home Energy Assistance Program (LIHEAP) funds to Alabama, Louisiana, Mississippi, and Florida to address heating and cooling needs of many residents. 

ON THE HORIZON

The Education & the Workforce Committee is in close consultation with federal agencies and the congressional leadership to shape proposals that will meet the near-term and long-term needs of employers, workers, retirees, and their families in the Gulf Coast region.  Specifically, in the coming weeks and months the Committee will work to improve affected families’ access to:

• Help for displaced workers

• Job training programs

• Health insurance benefits

• Pension benefits