{"id":6749,"date":"2012-07-03T13:13:48","date_gmt":"2012-07-03T17:13:48","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=6749"},"modified":"2012-07-06T14:35:50","modified_gmt":"2012-07-06T18:35:50","slug":"colorado-issues-over-630000000-in-bonds-to-stabilize-unemployment-insurance","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2012\/07\/colorado-issues-over-630000000-in-bonds-to-stabilize-unemployment-insurance\/","title":{"rendered":"Colorado Issues Over $630,000,000 in Bonds to Stabilize Unemployment Insurance"},"content":{"rendered":"<div class=\"img alignright size-medium wp-image-6752\" style=\"width:300px;\">\r\n\t<a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2012\/07\/20120703.jpg\"><img src=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2012\/07\/20120703-300x199.jpg\" alt=\"Colorado Issues Over $630,000,000 in Bonds to Stabilize Unemployment Insurance\" width=\"300\" height=\"199\" \/><\/a>\r\n\t<div>Colorado Issues Over $630,000,000 in Bonds to Stabilize Unemployment Insurance<\/div>\r\n<\/div>In a <a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2012\/07\/CO-UITF-Letter.pdf\" target=\"_blank\">letter<\/a> from Colorado Governor John W. Hickenlooper and Treasurer Walker Stapleton, Colorado employers were informed of the benefits of a recent bond offering by the State of Colorado.<\/p>\n<p><strong>UITF Was Financially Weak from 2008 Recession<\/strong><\/p>\n<p>The Colorado Unemployment Insurance Trust Fund (UITF) was destabilized by the 2008 recession. The UITF owed more than $600,000,000 to the federal government in April 2011 and was still projected to owe more than $100,000,000 at the end of June 2012.<\/p>\n<p><strong>Bond Proceeds Used to Stabilize UITF<\/strong><\/p>\n<p>By using the bond proceeds to stabilize the UITF, the governor asserts the following up-front savings to Colorado employers:<\/p>\n<ul>\n<li>Saves most Colorado businesses between $20-$120 per employee in 2013-2014<\/li>\n<li>\u201cTurns off\u201d the solvency surcharge to businesses for calendar year 2013 for the first time since 2004<\/li>\n<li>Moves the rates for employers based on a positive fund balance by June 30<\/li>\n<li>Allows bond assessments to count toward businesses\u2019 experience ratings<\/li>\n<li>Creates potential for future lower rates as the UITF reaches financial health more quickly<\/li>\n<\/ul>\n<p>The bond issuance also provides financial health to the UITF to benefit the fund for the long term through the following methods:<em><\/em><\/p>\n<ul>\n<li>Triggers solvency measures of HB11-1288, which will help prevent federal borrowing in future economic downturns<\/li>\n<li>Decreases interest cost associated with negative balance by half (from 3% to 1.4%), and stabilizes payments to make them more predictable<\/li>\n<li>Provides the UITF fund with a greater buffer that will promote quicker growth of UITF balance to protect employers from higher rates during future economic downturns<\/li>\n<\/ul>\n<p><strong>Bond Assessments Will Affect Unemployment insurance Premiums<\/strong><\/p>\n<p>According to the governor, principal and interest will be repaid as follows:<\/p>\n<p><em>Bond Principal Repayments (Billing notices <\/em><em>will <\/em><em>begin in November 2012):<\/em><\/p>\n<ul>\n<li>Annual bond repayments will be streamlined with the regular billing process to minimize confusion and avoid additional bills sent to employers.<\/li>\n<li>Statements will denote what percentage will be used for bond payment, currently estimated at about 18-25%.<\/li>\n<\/ul>\n<p><em>Bond Interest Repayments (Billing notices <\/em><em>will <\/em><em>begin in September 2012):<\/em><\/p>\n<ul>\n<li>Interest payments will mirror the billing process in prior years for Federal interest payments associated with the UITF\u2019s negative Federal balance.<\/li>\n<li>Similar to Federal interest payments, this will be collected through a separate assessment billed in September.<\/li>\n<li>Bond interest will be charged only to businesses that have an experience rating of less than +7.<\/li>\n<\/ul>\n<p><strong>Contact Vision Payroll for Further Information<\/strong><\/p>\n<p>Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> for further information on the Colorado UITF.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Colorado Issues Over $630,000,000 in Bonds to Stabilize Unemployment Insurance In a letter from Colorado Governor John W. Hickenlooper and Treasurer Walker Stapleton, Colorado employers were informed of the benefits of a recent bond offering by the State of Colorado. UITF Was Financially Weak from 2008 Recession The Colorado Unemployment Insurance Trust Fund (UITF) was [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[388,1726,1727,1724,182,1725],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6749"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=6749"}],"version-history":[{"count":4,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6749\/revisions"}],"predecessor-version":[{"id":6755,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6749\/revisions\/6755"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=6749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=6749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=6749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}