Bill
SD 2606
Requires quarterly UI Trust Fund outlooks (2025–2029) detailing solvency, inflows/outflows, Moody’s forecasts, and accessible data to boost transparency.
Status: Placed on file (Introduced January 21, 2025)
Purpose and scope
- This bill requires the continued publication of the Quarterly Outlook Report for Massachusetts’ Unemployment Insurance (UI) Trust Fund (UITF). The January 2025 report provides current fund status and outlook projections for 2025–2029, to support solvency planning and program budgeting.
- It formalizes the reporting obligations of the Executive Office of Labor and Workforce Development (EOLWD) and the Department of Unemployment Assistance (DUA).
What the bill would include or require
- Quarterly Outlook Report content (as provided in the January 2025 version):
- Introduction and overview of the Massachusetts UI program.
- Summary of fund status and projections, focusing on balance and solvency.
- Projections for calendar years 2025–2029, including wage growth, total unemployment rate, and labor force size.
- Detailed information on expected inflows (contributions) and outflows (benefits) for the UITF.
- Methodology and data sources:
- Economic and labor data from QCEW (wages and salaries) and LAUS (unemployment rate and labor force).
- Moody’s January 2025 forecasts to project historical data forward.
- Current-year highlights (for 2024) such as:
- 2024 fourth-quarter employer contributions: ~ $138 million; projected 2024 total contributions: ~$1.13 billion.
- 2024 fourth-quarter benefit payments: ~ $482 million; projected 2024 total benefits: ~$2.10 billion.
- UITF balance at year-end 2024: $2.16 billion (cash basis).
- Projections update notes:
- Modest changes to projection model parameters may reduce expected future contributions and benefits, with a small improvement in solvency but no change to the overall trend.
- Appendices and data:
- Appendix 1: Background and methodology (including the Experience Rate Table and data sources).
- Appendix 2: Data projections tables (with accessible data version).
- Unemployment Insurance definitions and data explanations.
- Accessibility and transparency:
- The report indicates that an accessible version of data in all charts is available in the Appendices.
- Public contact: economicresearch@mass.gov for UI Trust Fund information.
Who would be affected
- Employers funding the UI Trust Fund through state unemployment taxes and reimbursements.
- Unemployed workers benefiting from the UI program.
- State policymakers and budget planners relying on projected fund solvency and inflows/outflows.
- General public via transparency and accountability of the UI program’s financial health.
Procedural and timeline aspects
- The bill mandates ongoing publication of quarterly outlooks and an annual/future-facing outlook (consistent with MGL Chapter 151A, Section 14F) for 2025–2029 and requires quarterly updates.
- The January 2025 report uses data through the fourth quarter of 2024 and provides forward projections through 2029, with methodology and data sources documented in appendices.
Overall impact
- The bill codifies and formalizes the UI Trust Fund’s quarterly outlook reporting, ensuring continued transparency on fund solvency, projected inflows/outflows, and the economic assumptions underlying those projections. It codifies the use of specific data sources and Moody’s forecasts and provides a structured, public-facing accounting of fund health for 2025–2029.
Compiled from official sources — confirm details with the bill’s official record.
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