MEMORANDUM
TO: Senator Michael Rodrigues, Chair, Senate Committee on Ways and Means
Representative Aaron Michlewitz, House Committee on Ways and Means
Senator Patricia D. Jehlen, Chair, Joint Committee on Labor and Workforce Development
Representative Stephen Hay, Vice Chair, Joint Committee on Labor and Workforce Development
Michael D. Hurley, Senate Clerk
Steven T. James, House Clerk
FROM: Richard A. Jeffers
DATE: January 16, 2020
SUBJECT: JANUARY 2020 UNEMPLOYMENT INSURANCE TRUST FUND REPORT
The attached January Unemployment Insurance Trust Fund Report provides information on the trust fund status through
the end 2019. Projections for the private contributory account for 2020 through 2023 remain as published in the October
and November 2019 Outlook Reports. Year end trust fund balances, however, were revised based on the actual 2019
year-end balance.
The report highlights include:
The preliminary 2019 year-end private contributory account balance was $1.062 billion, $25 million higher than projected
caused by higher than expected employer contributions and federal interest earned. Preliminary total employer
contributions of $1.724 billion were $16 million more than projected while benefit payments of $1.257 billion, at $5 million
less, were in-line with the projection.
Tax rate schedule E triggered for 2020 employer contributions and the taxable wage base remained at $15,000.
The 2020 outlook for benefit payments is $1.417 billion; employer contributions are estimated at $1.662 billion and the
year-end private contributory account balance is now expected to be $1.871 billion.
Under the current economic assumptions the projections indicate that no borrowing from the federal unemployment
account will be required through the 2023 outlook period.
Revised trust fund projections for 2020 to 2023 along with 2024 projections will be released in the February 2020 Outlook
Report.
cc: Distribution List
 Outlook Report January 2020
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estimate of $1.846 billion, the amount the 2019 year-end
THE UNEMPLOYMENT INSURANCE balance was over the projection.
TRUST FUND BALANCE
The preliminary 2019 Massachusetts Unemployment 2021 – 2023 PROJECTIONS
Insurance Trust Fund year-end balance was $1.739 billion.
This balance is the sum of the preliminary private Projections for employer contributions and benefit
contributory account balance of $1.602 billion and the payments for the years 2021 to 2023 remain unchanged
governmental contributory account balance of $137 million. as published in the October and November 2019 Outlook
Reports. Taxable wage base remains at $15,000.
Projected year-end balances, however, are higher due to
THE UNEMPLOYMENT INSURANCE
the larger 2019 actual ending balance of $25 million.
TRUST FUND HIGHLIGHTS FOR 2019
Under the current economic scenario, no borrowing from
the federal unemployment account is expected for 2021 to
Preliminary annual employer contributions of $1.724 2023.
billion in 2019 were $16 million more than the projection
released in the October and November 2019 Outlook For 2021, tax rate schedule D is projected to trigger for
Reports. The 2019 employer contributions were $198 employer contributions. Contributions stay estimated at
million or 13 percent higher than the $1.526 billion $1.470 billion with benefit payments still projected at
collected in 2018 on a lower tax rate schedule. Employer $1.588 billion. Year-end private contributory balance
contributions plus interest earnings of $34 million projection increases to $1.779 billion.
generated $1.758 billion in private contributory income
during 2019. In 2022, tax rate schedule D is again projected to trigger
for employer payrolls and generate $1.445 billion in
Preliminary annual benefit payments of $1.257 billion in contributions. Benefit payments are still expected to be
2019 were $53 million or 4.0 percent lower than the $1.708 billion and a year-end private contributory fund
$1.310 billion paid in 2018 but in-line with the projection of balance now at $1.540 billion.
$1.262 billion. The 2019 initial claims and continued
weeks claimed were 1.3 percent and 8.2 percent less than For 2023, tax rate schedule E is projected to trigger for
last year, respectively. employer contributions. Contributions remain estimated at
$1.622 billion with benefit payments still projected at
The preliminary year-end private contributory account $1.724 billion. Year-end private contributory balance
balance of $1.602 billion is $25 million higher than the projection now estimated to be $1.459 billion.724
projection of $1.577 billion due primarily to the higher than
expected employer contributions and federal interest Note: Revised trust fund projections for 2020 through
earned. 2023 along with 2024 projections will be published in the
February 2020 Outlook Report. Revisions will be based
2020 OUTLOOK on 2019 claims and payment activities and the latest
economic assumptions from Moody’s Analytics Data
Services.
As published in the October and November 2019 Outlook
Reports, tax rate schedule E triggered for 2020 employer
contributions. With a $15,000 taxable wage base
employer contributions are projected at $1.662 billion.
Benefit payments are estimated to be $1.417 billion.
Under the current economic assumptions and tax rate
schedule, trust fund solvency will continue with a year-end
private contributory account balance now expected to be
$1.871 billion. In addition, no borrowing from the federal
unemployment account is anticipated. This actual year-
end balance is $25 million more than the previous
This report is submitted to the Legislature in accordance with the provisions of Chapter 151A, section 14F of the General Laws.
For more information please call: (617) 626-6600