Responsible Unemployment Compensation Extension Act of 2014

Summary: Amends the Supplemental Appropriations Act, 2008 (SSA, 2008) to extend emergency unemployment compensation (EUC) payments for eligible individuals to weeks of employment ending on or before April 1, 2014. Reauthorizes Tier-1, Tier-2, Tier-3, and Tier-4 of the EUC program for weeks ending after December 29, 2013, but reduces the duration of the first two Tiers, to up to six weeks each. Amends the Assistance for Unemployed Workers and Struggling Families Act to extend until March 31, 2014, requirements that federal payments to states cover 100% of EUC. Amends the Unemployment Compensation Extension Act of 2008 to exempt weeks of unemployment between enactment of this Act and September 30, 2014, from the prohibition in the Federal-State Extended Unemployment Compensation Act of 1970 (FSEUCA of 1970) against federal matching payments to a state for the first week in an individual's eligibility period for which extended compensation or sharable regular compensation is paid if the state law provides for payment of regular compensation to an individual for his or her first week of otherwise compensable unemployment. (Thus allows temporary federal matching for the first week of extended benefits for states with no waiting period.) Amends the FSEUCA of 1970 to postpone similarly from December 31, 2013, to March 31, 2014, termination of the period during which a state may determine its &quot;on&quot; and &quot;off&quot; indicators according to specified temporary substitutions in its formula.  Amends the SSA, 2008 to appropriate funds out of the employment security administration account through the first quarter of FY2015 to assist states in providing reemployment and eligibility assessment activities.  Amends the Railroad Unemployment Insurance Act to extend through March 31, 2014, the temporary increase in extended unemployment benefits.  Makes a change in application of a certain requirement (nonreduction rule) to a state that has: (1) entered a federal-state EUC agreement, under which the federal government would reimburse the state's unemployment compensation agency making EUC payments to individuals who have exhausted all rights to regular unemployment compensation under state or federal law and meet specified other criteria; and (2) enacted a law before December 1, 2013, that, upon taking effect, would violate the nonreduction rule.  (Under the nonreduction rule such an agreement does not apply with respect to a state whose method for computing regular unemployment compensation under state law has been modified to make the average weekly unemployment compensation benefit paid on or after June 2, 2010, less than what would have been paid before June 2, 2010.) Declares that the nonreduction rule shall not apply to a state which has enacted a law before December 1, 2013, that, upon taking effect, would violate the nonreduction rule. Allows such a state, however, to enter into a subsequent federal-state EUC agreement on or after enactment of this Act if, taking into account this inapplicability of the nonreduction rule, it would otherwise meet the requirements for an EUC agreement. (Thus allows such a subsequent EUC agreement to permit payment of less than the average weekly unemployment compensation benefit paid on or after June 2, 2010.) Repeals a provision of the Bipartisan Budget Act of 2013 that reduces the cost-of-living adjustment to the retirement pay of members of the Armed Forces under age 62. Amends title II (Old Age, Survivors, and Disability Insurance) (OASDI) of the Social Security Act, for any month before an individual reaches retirement age, to reduce the total of the individual's monthly disability insurance benefits and any OASDI benefits based on wages and self-employment income by the total amount of any UC received for that month (but not below zero). (Thus reduces the benefits based on receipt of UC.) Applies this reduction to any past-due monthly disability insurance benefits for any month in which the individual was entitled both to them and to UC. Makes the reduction inapplicable if the individual is entitled to UC for a month following a period of:  trial work, participation in the Ticket to Work and Self-Sufficiency Program, or participation in any other program designed to encourage an individual entitled to such benefits to work.  Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to require the Office of Management and Budget (OMB) to prepare, and the President to issue, a sequestration order on March 1 for each of FY2015-FY2023, in addition to the reduction in direct spending required under the Act, that reduces certain spending by the uniformed percentage necessary to reduce it for the fiscal year by $1.333 billion. Specifies the spending involved as:  nonexempt direct spending, not spending for certain Medicare programs, and within the revised nonsecurity category. 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Responsible 
Unemployment Compensation Extension Act of 2014''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Extension and modification of emergency unemployment 
                            compensation program.
Sec. 3. Temporary extension of extended benefit provisions.
Sec. 4. Extension of funding for reemployment services and reemployment 
                            and eligibility assessment activities.
Sec. 5. Additional extended unemployment benefits under the Railroad 
                            Unemployment Insurance Act.
Sec. 6. Flexibility for unemployment program agreements.
Sec. 7. Repeal of reductions made by Bipartisan Budget Act of 2013.
Sec. 8. Reduction in benefits based on receipt of unemployment 
                            compensation.
Sec. 9. Reduction of nonMedicare, nondefense direct spending.

SEC. 2. EXTENSION AND MODIFICATION OF EMERGENCY UNEMPLOYMENT 
              COMPENSATION PROGRAM.

    (a) Extension.--Section 4007(a)(2) of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is 
amended by striking ``January 1, 2014'' and inserting ``April 1, 
2014''.
    (b) Modifications Relating to Weeks of Emergency Unemployment 
Compensation.--
            (1) Number of weeks in first tier beginning after december 
        28, 2013.--Section 4002(b) of such Act is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4);
                    (B) in paragraph (2)--
                            (i) in the heading, by inserting ``, and 
                        weeks ending before december 30, 2013'' after 
                        ``2012''; and
                            (ii) in the matter preceding subparagraph 
                        (A), by inserting ``, and before December 30, 
                        2013'' after ``2012''; and
                    (C) by inserting after paragraph (2) the following:
            ``(3) Special rule relating to amounts established in an 
        account as of a week ending after december 29, 2013.--
        Notwithstanding any provision of paragraph (1), in the case of 
        any account established as of a week ending after December 29, 
        2013--
                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `24 percent' for `80 percent'; and
                    ``(B) paragraph (1)(B) shall be applied by 
                substituting `6 times' for `20 times'.''.
            (2) Number of weeks in second tier beginning after december 
        28, 2013.--Section 4002(c) of such Act is amended by adding at 
        the end the following:
            ``(5) Special rule relating to amounts added to an account 
        as of a week ending after december 29, 2013.--Notwithstanding 
        any provision of paragraph (1), if augmentation under this 
        subsection occurs as of a week ending after December 29, 2013--
                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `24 percent' for `54 percent'; and
                    ``(B) paragraph (1)(B) shall be applied by 
                substituting `6 times' for `14 times'.''.
    (c) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) in subparagraph (J), by inserting ``and'' at the end; 
        and
            (3) by inserting after subparagraph (J) the following:
                    ``(K) the amendments made by subsections (a) and 
                (b) of section 2 of the Responsible Unemployment 
                Compensation Extension Act of 2014;''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Taxpayer Relief 
Act of 2012 (Public Law 112-240).

SEC. 3. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

    (a) In General.--Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act, as contained in Public Law 111-5 
(26 U.S.C. 3304 note), is amended--
            (1) by striking ``December 31, 2013'' each place it appears 
        and inserting ``March 31, 2014''; and
            (2) in subsection (c), by striking ``June 30, 2014'' and 
        inserting ``September 30, 2014''.
    (b) Extension of Matching for States With No Waiting Week.--Section 
5 of the Unemployment Compensation Extension Act of 2008 (Public Law 
110-449; 26 U.S.C. 3304 note) is amended by striking ``June 30, 2014'' 
and inserting ``September 30, 2014''.
    (c) Extension of Modification of Indicators Under the Extended 
Benefit Program.--Section 203 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in subsection (d), by striking ``December 31, 2013'' 
        and inserting ``March 31, 2014''; and
            (2) in subsection (f)(2), by striking ``December 31, 2013'' 
        and inserting ``March 31, 2014''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Taxpayer Relief 
Act of 2012 (Public Law 112-240).

SEC. 4. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND REEMPLOYMENT 
              AND ELIGIBILITY ASSESSMENT ACTIVITIES.

    (a) In General.--Section 4004(c)(2)(A) of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is 
amended by striking ``through fiscal year 2014'' and inserting 
``through the first quarter of fiscal year 2015''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Taxpayer Relief 
Act of 2012 (Public Law 112-240).

SEC. 5. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD 
              UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended--
            (1) by striking ``June 30, 2013'' and inserting ``September 
        30, 2013''; and
            (2) by striking ``December 31, 2013'' and inserting ``March 
        31, 2014''.
    (b) Clarification on Authority To Use Funds.--Funds appropriated 
under either the first or second sentence of clause (iv) of section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be 
available to cover the cost of additional extended unemployment 
benefits provided under such section 2(c)(2)(D) by reason of the 
amendments made by subsection (a) as well as to cover the cost of such 
benefits provided under such section 2(c)(2)(D), as in effect on the 
day before the date of enactment of this Act.
    (c) Funding for Administration.--Out of any funds in the Treasury 
not otherwise appropriated, there are appropriated to the Railroad 
Retirement Board $62,500 for administrative expenses associated with 
the payment of additional extended unemployment benefits provided under 
section 2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason 
of the amendments made by subsection (a), to remain available until 
expended.

SEC. 6. FLEXIBILITY FOR UNEMPLOYMENT PROGRAM AGREEMENTS.

    (a) Flexibility.--
            (1) In general.--Subsection (g) of section 4001 of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
        U.S.C. 3304 note) shall not apply with respect to a State that 
        has enacted a law before December 1, 2013, that, upon taking 
        effect, would violate such subsection.
            (2) Effective date.--Paragraph (1) is effective with 
        respect to weeks of unemployment beginning on or after December 
        29, 2013.
    (b) Permitting a Subsequent Agreement.--Nothing in such title IV 
shall preclude a State whose agreement under such title was terminated 
from entering into a subsequent agreement under such title on or after 
the date of the enactment of this Act if the State, taking into account 
the application of subsection (a), would otherwise meet the 
requirements for an agreement under such title.

SEC. 7. REPEAL OF REDUCTIONS MADE BY BIPARTISAN BUDGET ACT OF 2013.

    Section 403 of the Bipartisan Budget Act of 2013 (Public Law 113-
67) is repealed as of the date of the enactment of such Act.

SEC. 8. REDUCTION IN BENEFITS BASED ON RECEIPT OF UNEMPLOYMENT 
              COMPENSATION.

    (a) In General.--Title II of the Social Security Act (42 U.S.C. 401 
et seq.) is amended by inserting after section 224 the following new 
section:

 ``reduction in benefits based on receipt of unemployment compensation

    ``Sec. 224A  (a)(1) If for any month prior to the month in which an 
individual attains retirement age (as defined in section 216(l)(1))--
                    ``(A) such individual is entitled to benefits under 
                section 223, and
                    ``(B) such individual is entitled for such month to 
                unemployment compensation,
        the total of the individual's benefits under section 223 for 
        such month and of any benefits under section 202 for such month 
        based on the individual's wages and self-employment income 
        shall be reduced (but not below zero) by the total amount of 
        unemployment compensation received by such individual for such 
        month.
            ``(2) The reduction of benefits under paragraph (1) shall 
        also apply to any past-due benefits under section 223 for any 
        month in which the individual was entitled to--
                    ``(A) benefits under such section, and
                    ``(B) unemployment compensation.
            ``(3) The reduction of benefits under paragraph (1) shall 
        not apply to any benefits under section 223 for any month, or 
        any benefits under section 202 for such month based on the 
        individual's wages and self-employment income for such month, 
        if the individual is entitled for such month to unemployment 
        compensation following a period of trial work (as described in 
        section 222(c)(1), participation in the Ticket to Work and 
        Self-Sufficiency Program established under section 1148, or 
        participation in any other program that is designed to 
        encourage an individual entitled to benefits under section 223 
        or 202 to work.
    ``(b) If any unemployment compensation is payable to an individual 
on other than a monthly basis (including a benefit payable as a lump 
sum to the extent that it is a commutation of, or a substitute for, 
such periodic compensation), the reduction under this section shall be 
made at such time or times and in such amounts as the Commissioner of 
Social Security (referred to in this section as the `Commissioner') 
determines will approximate as nearly as practicable the reduction 
prescribed by subsection (a).
    ``(c) Reduction of benefits under this section shall be made after 
any applicable reductions under section 203(a) and section 224, but 
before any other applicable deductions under section 203.
    ``(d)(1) Subject to paragraph (2), if the Commissioner determines 
that an individual may be eligible for unemployment compensation which 
would give rise to a reduction of benefits under this section, the 
Commissioner may require, as a condition of certification for payment 
of any benefits under section 223 to any individual for any month and 
of any benefits under section 202 for such month based on such 
individual's wages and self-employment income, that such individual 
certify--
            ``(A) whether the individual has filed or intends to file 
        any claim for unemployment compensation, and
            ``(B) if the individual has filed a claim, whether there 
        has been a decision on such claim.
    ``(2) For purposes of paragraph (1), the Commissioner may, in the 
absence of evidence to the contrary, rely upon a certification by the 
individual that the individual has not filed and does not intend to 
file such a claim, or that the individual has so filed and no final 
decision thereon has been made, in certifying benefits for payment 
pursuant to section 205(i).
    ``(e) Whenever a reduction in total benefits based on an 
individual's wages and self-employment income is made under this 
section for any month, each benefit, except the disability insurance 
benefit, shall first be proportionately decreased, and any excess of 
such reduction over the sum of all such benefits other than the 
disability insurance benefit shall then be applied to such disability 
insurance benefit.
    ``(f)(1) Notwithstanding any other provision of law, the head of 
any Federal agency shall provide such information within its possession 
as the Commissioner may require for purposes of making a timely 
determination of the amount of the reduction, if any, required by this 
section in benefits payable under this title, or verifying other 
information necessary in carrying out the provisions of this section.
    ``(2) The Commissioner is authorized to enter into agreements with 
States, political subdivisions, and other organizations that administer 
unemployment compensation, in order to obtain such information as the 
Commissioner may require to carry out the provisions of this section.
    ``(g) For purposes of this section, the term `unemployment 
compensation' has the meaning given that term in section 85(b) of the 
Internal Revenue Code of 1986, and the total amount of unemployment 
compensation to which an individual is entitled shall be determined 
prior to any applicable reduction under State law based on the receipt 
of benefits under section 202 or 223.''.
    (b) Conforming Amendment.--Section 224(a) of the Social Security 
Act (42 U.S.C. 424a(a)) is amended, in the matter preceding paragraph 
(1), by striking ``the age of 65'' and inserting ``retirement age (as 
defined in section 216(l)(1))''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to benefits payable for months beginning on or after the 
date that is 12 months after the date of enactment of this section.

SEC. 9. REDUCTION OF NONMEDICARE, NONDEFENSE DIRECT SPENDING.

    Section 251A of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 901a) is amended by adding at the end the 
following:
            ``(11) Additional reduction of nonmedicare, nondefense 
        direct spending.--
                    ``(A) In general.--For each of fiscal years 2015 
                through 2023, in addition to the reduction in direct 
                spending under paragraph (6), on the date specified in 
                paragraph (2), OMB shall prepare and the President 
                shall order a sequestration, effective upon issuance, 
                reducing the spending described in subparagraph (B) by 
                the uniform percentage necessary to reduce such 
                spending for the fiscal year by $1,333,000,000.
                    ``(B) Spending covered.--The spending described in 
                this subparagraph is spending that is--
                            ``(i) nonexempt direct spending;
                            ``(ii) not spending for the Medicare 
                        programs specified in section 256(d); and
                            ``(iii) within the revised nonsecurity 
                        category.''.