Pennacchio bill seeks unemployment insurance fund stability

State Sen. Joe Pennacchio (R-Montville) wants to revise the statutes and regulations governing the state’s unemployment insurance fund.

“Today the State of New Jersey has borrowed more than $1.2 billion to keep our Unemployment Insurance fund solvent,” said Pennacchio, who this week introduced a bill seeking stability of the fund. 

“The state is in this predicament because over the past eight years levies paid by employees and employers to support the fund have been consistently diverted to pay the state’s general operating expenses. I fought these diversions at the time but now the UI fund has become dangerously depleted and corrective measures must be taken.”

Pennacchio’s bill seeks reduction of the maximum weekly UI benefit by $50 to $550 per week, while tying future benefit increases to fund solvency; imposition of a one week waiting period on a new claimant estricts the benefit payment for a claimant who has been dismissed for misconduct; and establishment of a shared work unemployment benefits program.

“This common-sense reform legislation is designed to ensure that the unemployment insurance fund is never used by Trenton politicians as a personal piggy bank,” said the Morris County senator. “Middle-class working families’ pay into the fund fully expecting that if they lose their job the funds they have paid into the fund will be available.” Pennacchio bill seeks unemployment insurance fund stability