98-30138. Unemployment Compensation for Ex-servicemembers (UCX) Program: Unemployment Insurance Program Letter Amending the Consolidated List of ``Acceptable'' Narrative Reasons for Separation Transmitted in UIPL No. 3-95, Change 1 to Include Those ...  

  • [Federal Register Volume 63, Number 217 (Tuesday, November 10, 1998)]
    [Notices]
    [Pages 63082-63083]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-30138]
    
    
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    DEPARTMENT OF LABOR
    
    Employment and Training Administration (ETA)
    
    
    Unemployment Compensation for Ex-servicemembers (UCX) Program: 
    Unemployment Insurance Program Letter Amending the Consolidated List of 
    ``Acceptable'' Narrative Reasons for Separation Transmitted in UIPL No. 
    3-95, Change 1 to Include Those Dealing With ``Inaptitude.''
    
        ETA has responsibility for administration of the UCX program, 
    providing unemployment compensation benefits for ex-servicemembers. ETA 
    issues interpretations affecting the UCX program in Unemployment 
    Insurance Program Letters (UIPLs) to the State Employment Security 
    Agencies (SESAs). The UIPL described below is published in the Federal 
    Register in order to inform the public.
    
    UIPL 3-95, Change 2
    
        To be eligible for UCX, an ex-servicemember must, among other 
    requirements, meet the definition of ``Federal service.'' This requires 
    that the servicemember be separated under honorable conditions and have 
    completed a first full term of service. If separated before completing 
    the first full term, the separation must be for, among other reasons, 
    ``inaptitude,'' but only if the service was continuous for at least 365 
    days. On December 6, 1994, UIPL No. 3-95 was issued to all SESAs 
    formally transmitting a new consolidated list of acceptable narrative 
    reasons for separation, except those for ``inaptitude,'' and 
    instructions for their use in determining individual eligibility for 
    UCX benefits.
        UIPL No. 3-95 informed the SESAs that ETA would amend the list of 
    ``acceptable'' narrative reasons for separation when it was determined 
    which narrative reasons for separation were for ``inaptitude.'' DOL has 
    now finalized the list of ``acceptable'' narrative reasons for 
    separation dealing with ``inaptitude'' in UIPL No. 3-95, Change 2.
    
        Dated: November 5, 1998.
    Raymond L. Bramucci,
    Assistant Secretary of Labor.
    DIRECTIVE: Unemployment Insurance Program Letter No. 3-95, Change 2
    
    TO: All State Employment Security Agencies
    
    FROM: Grace A. Kilbane, Director, Unemployment Insurance Service
    
    SUBJECT: UCX Narrative Reasons for Separation from Military Service
    
        1. Purpose. To amend the consolidated list of ``acceptable'' 
    narrative reasons for separation transmitted in Unemployment 
    Insurance Program Letter (UIPL) No. 3-95 and UIPL No. 3-95, Change 1 
    to include those dealing with ``inaptitude.''
        2. References. UIPL No. 3-95; UIPL No. 3-95, Change 1; 5 U.S.C. 
    8521(a)(1); and 20 CFR Part 614.
        3. Background. On December 6, 1994, UIPL No. 3-95 was issued to 
    all State Employment Security Agencies (SESAs) formally transmitting 
    a new consolidated list of acceptable narrative reasons for 
    separation, except those for ``inaptitude,'' and instructions for 
    their use in determining indi-vidual eligibility for UCX benefits. 
    The military services began to use exclusively the consolidated list 
    of ``acceptable'' narrative reasons for separation after October 1, 
    1993.
        After the issuance of UIPL No. 3-95, the Department of Labor 
    (DOL) received several inquiries from SESAs regarding the effective 
    date of the new instructions for using the consolidated list of 
    acceptable narrative reasons for separation that was contained in 
    UIPL No. 3-95. UIPL No. 3-95 stated that the new consolidated list 
    of acceptable narrative reasons for separation was effective for all 
    separations from military service on or after December 6, 1994, the 
    date of the directive. Since the DOL did not provide for a 
    retroactive application of the consolidated list in UIPL No. 3-95, 
    some SESAs assumed that UIPL No. 25-83 and Changes 1-12 were 
    controlling for the period October 1, 1993, to December 5, 1994.
        Consequently, UIPL No. 3-95, Change 1 was issued revising the 
    effective date of UIPL No. 3-95 and provided clarifying instructions 
    concerning the effective dates of lists of ``acceptable'' narrative 
    reasons for separation.
        Further, UIPL No. 3-95 informed the SESAs that the DOL would 
    amend the list of ``acceptable'' narrative reasons for separation 
    when it was determined which narrative reasons for separation were 
    for ``inaptitude.'' DOL has now finalized the list of ``acceptable'' 
    narrative reasons for separation dealing with ``inaptitude.''
        The contents of this directive will also be issued as a Change 
    14 to ET Handbook No. 384, Second Edition.
        4. DOL Definition of ``Inaptitude.'' DOL defines ``inaptitude'' 
    as being ``unsuitable for military service for reasons largely 
    related to personal characteristics not reflected by acts of serious 
    misbehavior.''
        5. Narrative Reasons for Separation Meeting DOL's Definition of 
    Inaptitude. DOL determined that 20 narrative reasons, listed in the 
    attachment to this directive, constitute ``inaptitude'' under the 
    above definition for UCX qualifying purposes. DOL estimates that 
    this broader definition will allow approximately 2,500 to 3,000 
    additional claimants per year to qualify for UCX.
        6. Effective Date. The narrative reasons for separation that DOL 
    has determined constitute ``inaptitude'' within the meaning of 5 
    U.S.C. 8521(a)(1)(B)(ii)(IV) shall be effective for all initial 
    claims filed on and after the date of this directive. However, where 
    State law permits, a monetary redetermination must be issued when: 
    (1) a claimant requests a redetermination on a new or previously 
    denied claim or files an additional or renewed claim for benefits, 
    and (2) the claimant's military service is within
    
    [[Page 63083]]
    
    the State's base period at the time of the request or effective date 
    of claim.
        Any redetermination of monetary eligibility must be based upon 
    the ``new list'' of acceptable narrative reasons for discharge. This 
    applies to any claimant who has or who would have had a benefit year 
    in effect which would have included UCX wage credits, if not for the 
    denial based on the prior list of acceptable narrative reasons for 
    discharge. However, this new interpretation only impacts weeks of 
    unemployment after the date of this directive, i.e., although a 
    redetermination may result in future eligibility or a higher weekly 
    benefit amount, no back payments will be made as a result of wage 
    credits that were unavailable to the claimant prior to the date of 
    this directive.
        The new list of ``acceptable'' narrative reasons for separation 
    constituting ``inaptitude'' represents a substantial expansion from 
    October 1, 1993, of both the types and the numbers, of separations 
    designated as ``inaptitude.'' Prior to October 1, 1993, there was 
    only one DOD narrative reason used to denote discharges for 
    ``inaptitude.'' This reason was designated as ``Unsuitability--
    Inaptitude.'' However, since October 1, 1993, the DOD had ceased 
    using this narrative reason.
        Although it is a sound rule of administrative law to apply new 
    statutory interpretations prospectively, UIPL No. 3-95 announced an 
    intent to make retroactive the amended list of ``acceptable'' 
    narrative reasons for separation constituting ``inaptitude.'' DOL 
    initially believed that a substantial number of ex-servicemembers 
    might have been prejudiced by having no discharges designated as 
    ``inaptitude'' from late 1993 until the new ``inaptitude'' list was 
    released and thus examined whether to apply this expanded list 
    retroactively to October 1, 1993. However, as explained below, DOL, 
    in consultation with DOD, has since determined that very few 
    servicemembers would be prejudiced by an application that was only 
    prospective and, therefore, the public interest would not be served 
    by a retroactive application.
        DOD has informed DOL that there were only seven discharges with 
    a narrative reason related to ``inaptitude'' (designated as 
    ``Unsuitability--Inaptitude'') during the three fiscal years 
    immediately prior to October 1, 1993. This information suggests that 
    very few servicemembers likely would have been discharged after 1993 
    for the ``inaptitude'' narrative reason for separation had the pre-
    October 1, 1993 narrative reason continued in use. Thus, very few 
    individuals dis-charged after October 1, 1993, but prior to the date 
    of this issuance, would have had any expectation of qualifying for 
    benefits under the prior inaptitude list.
        7. Action Required. SESAs are required to:
        a. Distribute the contents of this directive and the attachment 
    to all appropriate staff members.
        b. Destroy the Attachment to UIPL 3-95 Change 1 and utilize the 
    Attachment to this Change 2 to UIPL 3-95.
        c. Announce in a newspaper of general circulation, and in other 
    appropriate media such as veterans publications, the application of 
    the operating instructions contained in this directive and their 
    effect on UCX eligibility. The announcements shall include mention 
    of the authority under 20 CFR 614.9(a) to issue redeterminations of 
    previously denied UCX claims.
        8. Inquiries. Direct inquiries to the appropriate Regional 
    Office.
        9. Attachment. Revised List of ``Acceptable'' Narrative Reasons 
    for Separation Meeting the Requirements of 5 U.S.C. 
    8521(a)(1)(B)(ii)(I)-(IV).
    
    ``ACCEPTABLE'' Narrative Reasons for Separation Meeting the 
    Requirements of 5 U.S.C. 8521(a)(1)(B)(ii)(I)-(IV)
    
    For the convenience of the government under an early release program 
    (5 U.S.C. 8521(a)(1)(B)(ii)(I))
        Medal of Honor Recipient
        Completion of Required Active Service
        Insufficient Retainability (Economic Reasons)
        Reduction in Force
        To Attend School
        Holiday Early Release Program
        Defective Enlistment Agreement
        Erroneous Entry (Other)
        Intradepartmental Transfer*
        Miscellaneous/General Reasons**
    Because of medical disqualification, pregnancy, parenthood, or 
    Service-incurred injury or disability (5 U.S.C. 
    8521(a)(1)(B)(ii)(II))
        Pregnancy or Childbirth
        Parenthood or Custody of Minor Children
        Conditions, not Disability
        Disability, Severance Pay
        Disability, Permanent
        Disability, Temporary
        Disability, Existed Prior to Service, PEB
        Disability, Existed Prior to Service, Med BD
        Disability, Aggravated
        Disability, Other
    Because of hardship (5 U.S.C. 8521(a)(1)(B)(ii)(III))
        Surviving Member
        Hardship
    
        *Effective for separations on or after September 1, 1994.
        **Pertaining only to Army Officers' separations occurring from 
    October 1, 1994 through August 31, 1995 and November 14, 1995 
    through July 1, 1996.
    
    Because of personality disorders or inaptitude, but only if the 
    service was continuous for 365 days or more (5 U.S.C. 
    8521(a)(1)(B)(ii)(IV))
        Personality Disorder
    
        The following are narrative reasons for separation that DOL has 
    determined constitute ``inaptitude'' within the meaning of 5 U.S.C. 
    8521(a)(1)(B)(ii)(IV) and which are effective for all separations 
    from military services on and after the date of this directive:
    
    Conscientious Objector
    Weight Control Failure
    Ecclesiastical Endorsement
    Secretarial Authority
    Physical Standards
    Erroneous Entry, Alcohol Abuse
    Erroneous Entry, Drug Abuse
    Non-selection, Permanent Promotion
    Non-selection, Temporary Promotion
    Failure to Complete a Commission or Warrant Program
    Failure to Complete a Course of Instruction
    Unsatisfactory Performance
    Substandard Performance
    Personal Alcohol Abuse
    Alcohol Rehabilitation Failure
    Drug Rehabilitation Failure
    Military Personnel Security Program
    Homosexual Admission
    Homosexual Act
    Non-retention on Active Duty
    [FR Doc. 98-30138 Filed 11-9-98; 8:45 am]
    BILLING CODE 4510-30-P
    
    
    

Document Information

Published:
11/10/1998
Department:
Labor Department
Entry Type:
Notice
Document Number:
98-30138
Pages:
63082-63083 (2 pages)
PDF File:
98-30138.pdf