An Act to provide for the establishment of a temporary program of extended unemployment compensation, to provide for a temporary increase in the rate of the Federal unemployment tax, and for other purposes
PL 87-6 (H.R.4806), enacted 03/24/1961

8 
PUBLIC LAW 87.6-MAR. 24, 1961 
[75 S T A T . 
Public Law 87-6 
March 24, 1961 
AN ACT 
— 
'- 
To provide for the establishment of a temporary program of extended unem-
ployment compensation, to provide for a temporary increase in the rate of 
the Federal unemployment tax, and for other purposes. 
Be it enacted by the Senate and Floum of Representatives 
of the 
tend^*"unempioy- United States of America in Congress asseniyhled^ That this Act may 
uon'^Act^ofTler^ ^ cited as the "Temporary Extended Unemployment Compensation 
Act of 1961". 
DEFINITIONS 
SEC. 2. For purposes of this Act— 
(1) The term "compensation period" means, in the case of 
any individual, the period beginning with the first day of a 
benefit year (determined under applicable State law) for such 
individual and ending on the day before the first day of the 
next benefit year (determined under applicable State law) for 
such individual. 
If the applicable State law does not define 
a benefit year, then for purposes of the preceding sentence such 
term has the meaning prescribed by the Secretary. 
(2) The term "first claim" means the first request for determi-
nation of an individual's right to temporary extended unemploy-
ment compensation, without regard to whether or not any com-
pensation is paid. 
(3) The term "State unemployment compensation" means the 
regular unemployment compensation payable to an individual 
under the State law or title XV, and any additional unemploy-
ment compensation payable to such individual under the State 
law or title XV during periods of high imemployment. 
(4) The term "Secretary" means the Secretary of Labor of the 
United States. 
(5) The term "State" includes the District of Columbia and 
the Commonwealth of Puerto Rico. 
(6) The term "State agency" means the agency of the State 
which administers its State law. 
(7) The term "State law" means the unemployment compensa-
tion law of the State, approved by the Secretary under section 
26 use 3304. 
3304 of the Internal Revenue Code of 1954, and the unemploy-
ment compensation law of Puerto Rico during the last six months 
before January 1, 1961. 
(8] The term "temporary extended unemployment compensa-
tion" means the additional unemployment compensation payable 
under this Act. 
(9) The term "title XV" means title X V of the Social Security 
Act. 
(10) The term "week" means a week as defined in the applicable 
State law. 
PAYMENT OF COMPENSATION 
Eligibility 
SEC. 3. (a) Payment of temporary extended unemployment com-
pensation shall be made, for anjr week of unemployment which begins 
in the covered period specified in section 6, to individuals who have, 
after June 30, 1960, exhausted (within the meaning prescribed by 
the Secretary by regulations) all rights under the State law and title 
« ^u^ c^' U61- - ^ ^ ^^^ ^^® have no rights to unemployment compensation with 
1371. 
i*espect to such week under any such law or under any other Federal 
or State unemployment compensation law. 
75 S T A T . ] 
PUBLIC LAW 87.6-MAR. 24, 1961 
9 
Weekly Benefit Amount 
(b) The temporary extended unemployment compensation payable 
to an individual for a week of total unemployment shall be the weekly 
benefit amount (including allowances for dependents) for total unem-
ployment which was payable to him pursuant to the State law or title 
X V under which he last exhausted his rights before making his 
| | ^ifsc^'^iaet-
first claim under this Act. The temporary extended unemployment i37i. 
compensation payable to an individual for a week of less than total 
unemployment shall be computed on the basis of such weekly benefit 
amount, except that in such computation allowances for dependents 
shall be taken into account in the manner provided by the applicable 
State law with respect to such a week of less than total unemployment. 
Application of State Laws 
(c) Except where inconsistent with the provisions of this Act, the 
terms and conditions of the State law or title XV under which an 
individual most recently exhausted his rights shall apply to his 
claim for temporary extended unemployment compensation and to 
the payment thereof. 
REIMBURSEMENT 
SEC. 4. The United States shall reimburse any State, with which 
an agreement has been entered into under section 7 which includes the 
provisions specified in subsection (a) (2) thereof, for any State unem-
ployment compensation paid by it to an individual with respect to a 
week of unemployment beginning in the covered period specified in 
section 6, to the extent that the sum of such payment, plus the State 
unemployment compensation paid by such State for prior weeks of 
unemployment in the compensation period and not reimbursed under 
this section, exceeds 26 times the weekly benefit amount (including 
allowances for dependents) for total unemployment which was pay-
able to such individual pursuant to State law or title XV in such 
compensation period. 
LIMITATION ON TOTAL PAYMENTS AND 
REIMBURSEMENTS 
Overall Limitation 
SEC. 5. (a) The sum of the temporary extended unemployment 
compensation payable to any individual, plus the State unemploy-
ment compensation paid to such individual with respect to which any 
State is entitled to reimbursement under this Act (or would be en-
titled to such reimbursement but for the fact that such compensation 
is paid under title XV), shall not exceed whichever of the following 
amounts is the smaller: 
(1) An amount equal to 50 percent of the total amount of 
State unemployment compensation (including allowances for 
dependents) which was payable to him for his first compensation 
period. Or 
(2) An amount equal to 13 times his weekly benefit amount 
for his first compensation period. 
Limitation Based on Compensation Period 
(b) Payment of temporary extended unemployment compensation 
(and reimbursement of State unemployment compensation) shall not 
be made with respect to any individual for any week of unemploy-
ment, to the extent that such payment or reimbursement, when added 
to the sum of State unemployment compensation and temporary 
64207 0-62—4 
10 
PUBLIC LAW 87-6-MAR. 24, 1961 
[75 STAT. 
extended unemployment compensation paid to such individual with 
respect to prior weeks in the compensation period, would exceed 39 
times such indi'V'idual's weekly benefit amount for such compensation 
period. 
Definitions 
(c) For purposes of this section— 
(1) The term "first compensation period" means— 
(A) in the case of any individual whose first claim under 
this Act is for a week of unemployment before his first 
reimbursement week, the compensation period in which he 
last exhausted his rights to State unemployment compensa-
tion before making such first claim, or 
(B) in the case of any other individual, the compensation 
period in which his first reimbursement week occurs. 
(2) In the case of any individual, the term "first reimburse-
ment week" means the first week with respect to which any State is 
entitled to reimbursement under section 4 (or would be entitled 
to such reimbursement but for the fact that the compensation was 
42 T s c^ u'ei- 
P^i^ under title XV). 
1371. 
' 
(3) An individual's weekly benefit amount for any compensa-
tion period is the weekly benefit amount (including allowances for 
dependents) for total unemployment which was payable to him 
in such compensation period pursuant to the State law or title 
XV. 
COVERED PERIOD 
SEC. 6. 'In the case of any individual, the covered period referred 
to in sections 3 and 4 is the period— 
(1) beginning on whichever of the following is the later: 
(A) the 15th day after the date on which this Act is en-
acted, or 
(B) the day after the date on which any applicable agree-
ment is entered into under section 7 or 8, and 
(2) ending— 
(A) on March 31, 1962, or 
(B) on June 30, 1962, in the case of an individual who 
(for a week beginning before April 1, 1962) had a week 
with respect to which temporary extended unemployment 
compensation was payable under section 3, reimbursement 
was payable under section 4, or reimbursement would have 
been so payable but for the fact that the unemployment com-
pensation was payable under title XV. 
AGREEMENTS W I T H 
STATES 
In General 
SEC. 7. (a) The Secretary is authorized on behalf of the United 
States to enter into an agreement with a State, or with the agency 
administering the State law, which shall include the provisions de-
scribed in paragraphs (1) and (2) or in either of them: 
(1) Such State agency will make, as agent of the United States, 
payments of temporary extended unemployment compensation 
to the individuals referred to in section 3 on the basis provided 
in this Act, and will otherwise cooperate with the Secretary and 
with other State agencies in making payments of temporary 
extended unemployment compensation under this Act. 
75 S T A T . ] 
PUBLIC LAW 87.6-MAR. 24, 1961 
11 
(2) The United States will reimburse the State for State un-
employment compensation paid under the conditions specified in 
section 4. 
Except as provided in section 8, temporary extended unemployment 
compensation shall be paid, and reimbursement under section 4 shall 
be made, only pursuant to an agreement entered into under this 
section. 
Amendment, Suspension, or Termination of Agreement 
(b) Each agreement under this Act shall provide the terms and 
conditions upon which the agreement may be amended, suspended, or 
terminated. 
No Denial or Eeduction of State Benefits 
(c) Any agreement under this Act shall provide that regular un-
employment compensation otherwise payable to any individual will 
not be denied or reduced for any week by reason of any right to tem-
porary extended unemployment compensation under this Act. 
Review 
(d) Any determination by a State agency with respect to entitle-
ment to temporary extended unemployment compensation pursuant to 
an agreement under this Act shall be subject to review in the same 
manner and to the same extent as determinations under the State law, 
and only in such manner and to such extent. 
Compensation To Be Reduced by Certain Retirement Pensions 
and Annuities 
(e) (1) Any agreement under this Act shall provide that temporary 
extended unemployment compensation payable to an individual with 
respect to a week shall be reduced, under regulations prescribed by the 
Secretary, by any amount received with respect to such week as a 
retirement pension or annuity under a public or private retirement 
plan or system provided, or contributed to, by any base period em-
ployer. 
An amount received with respect to a period other than a 
week shall be prorated by weeks. No reduction shall be made under 
this paragraph for (A) any retirement pension or annuity received 
by reason of disability, or (B) any amount received under title I I of 
the Social Security Act. 
tlvic4ot 
(2) For purposes of this subsection, the term "base period em-
ployer" means, in the case of any individual, any person who paid 
such individual any remuneration for employment which was taken 
into account in computing the amount or duration of any State un-
employment compensation which was payable to such individual at 
any time during the compensation period. 
(3) For purposes of section 3(c), so much of any State law as pro-
vides a disqualification for, or a reduction in, State unemployment 
compensation for amounts received as retirement pensions or annui-
ties (or for amounts received under title I I of the Social Security 
Act) shall be deemed to be inconsistent with the provisions of this 
Act relating to the payment of temporary extended unemployment 
compensation. 
42 use 401-425. 
12 
PUBLIC LAW 87-6-MAR. 24, 1961 
[75 STAT. 
EX-SERVICEMEN AND FEDERAL EMPLOYEES 
In States Which Do Not Have Agreements 
SEC. 8. (a) For the purpose of paying temporary extended unem-
ployment compensation to individuals who have, after June 30,1960, 
exhausted their rights to unemployment compensation under title 
42 ^ * c ^^1361- - ^ ^ ^^ ^ State with which there is no agreement under section 7 
1371. 
which applies with respect to the weeks of unemployment concerned, 
the Secretary may extend any existing agreement with such State. 
Any such extension shall apply only to weeks of unemployment 
beginning after such extension is made. For the purposes of this 
Act, any such extension shall be treated as an agreement entered into 
under this Act. 
In the Virgin Islands 
(b) For the purpose of paying temporary extended unemployment 
compensation to individuals who have, after June 30,1960, exhausted 
their rights to unemployment compensation under title XV in the 
Virgin Islands, the Secretary may utilize the personnel and facilities 
of the agency in the Virgin Islands cooperating with the United 
States Emplojrment Service under the Act of June 6,1933 (29 U.S.C. 
48 Stat. 113. 
49 and following), may delegate to officials of such agency any au-
thority granted to him by this Act whenever the Secretary determines 
such delegation to be necessarv in carrying out the purposes of this 
Act, and may allocate or transfer funds or otherwise pay or reimburse 
such agency for the total cost of the temporary extended unemploy-
ment compensation paid under this Act and for expenses incurred m 
carrying out the purposes of this Act. 
Review 
(c) Any individual referred to in subsection (b) whose claim for 
temporary extended unemployment compensation has been denied 
shall be entitled to a fair hearing and review as provided in section 
n ^st h'ii: 
1503 (c) of title XV. 
PENALTIES 
False Statements, and So Forth 
SEC. 9. (a) Whoever makes a false statement or representation of 
a material fact knowing it to be false, or knowingly fails to disclose 
a material fact, to obtain or increase for himself or for any other 
individual any payment under this Act shall be fined not more than 
$1,000 or imprisoned for not more than one year, or both. 
Recovery of Overpayments 
(b) (1) If a State agency or the Secretary, as the case may be, or a 
court of competent jurisdiction, finds that any person— 
(A) has made, or has caused to be made by another, a false 
statement or representation of a material fact knowing it to be 
false, or has knowingly failed, or caused another to fail, to dis-
close a material fact, and 
(B) as a result of such action has received any payment under 
this Act to which he was not entitled, 
such person shall be liable to repay such amount to the State agency 
or the Secretary, as the case may be. In lieu of requiring the repay-
ment of any amount under this paragraph, the State agency or the 
Secretary, as the case may be, may recover such amount by deductions 
75 S T A T . ] 
PUBLIC LAW 87-6-MAR. 24, 1961 
13 
from any compensation payable to such person under this Act. 
Any 
such finding by a State agency or the Secretary^ as the case may be, 
may be made only after an opportunity for a fair hearing, subject to 
such further review as may be appropriate under sections 7(d) and 
8(c). 
(2) Any amount repaid to a State agency under paragraph (1) 
shall be deposited into the fund from which payment was made. 
Any 
amount repaid to the Secretary under paragraph (1) shall be re-
turned to the Treasury and credited to the current applicable appro-
priation, fund, or account from which payment was made. 
INFORMATION 
SEC. 10. The agency administering the State law shall furnish to 
the Secretary such information as he may find necessary or appropri-
ate in carrying out the provisions of this Act. 
Such information 
shall include data (which may be procured on a sampling basis) 
Relating to the personal characteristics, family situation, employment 
background, and experience under this Act of individuals found to 
be entitled to temporary extended unemployment compensation. 
PAYMENTS TO STATES 
Payment on Calendar Month Basis 
SEC. 11. (a) (1) Except as provided in paragraph (2), there shall 
be paid to each State which has an agreement under this Act, either 
in advance or by way of reimbursement, as may be determined by the 
Secretary, such sum as the Secretary estimates the State will be 
entitled to receive under this Act for each calendar month, reduced 
or increasedj as the case may be, by any sum by which the Secretary 
finds that his estimates for any prior calendar month were greater 
or less than the amounts which should have been paid to the State. 
Such estimates may be made upon the basis of such statistical, sam-
pling, or other method as may be agreed upon by the Secretary and 
tlie State agency. 
(2) Any payments to a State pursuant to section 4 shall be by way 
of reimbursement, and shall be used only for the payment of cash 
benefits to individuals with respect to their unemployment, exclusive 
of expenses of administration. 
Certification 
(b) The Secretary shall from time to time certify to the Secre-
tary of the Treasury for payment to each State which has an agree-
ment under this Act sums payable to such State under paragraphs 
(1) and (2) of subsection (a). 
The Secretary of the Treasury, 
prior to audit or settlement by the General Accounting Office, shall 
make payment to the State in accordance with such certification, from 
the Federal extended compensation account. Sums payable to a State • 
under paragraph (2) of subsection (a) shall be paid by transfers 
from the Federal extended compensation account to the account of 
such State in the Unemployment Trust Fund. 
Money To Be Used Only for Purposes for Which Paid 
(c) All money paid a State under this Act shall be used solely 
for the purposes for which it is paid; and any money so paid which 
is not used for such purposes shall be returned, at the time specified 
in the agreement under this Act, to the Treasury and credited to 
1* 
PUBLIC LAW 87-6-MAR. 24, 1961 
[75 ST 
A T . 
current applicable appropriations, funds, or accounts from which 
payments to States under this Act may be made. 
Surety Bonds 
(d) An agreement under this Act may require any officer or 
employee of the State certifying payments or disbursing funds pur-
suant to the agreement, or otherwise participating in its performance, 
to give a surety bond to the United States in such amount as the Secre-
tary may deem necessary, and may provide for the payment of the 
cost of such bond from funds for carrying out the purposes of this 
Act. 
Liability of Certifying Officers 
(e) No person designated pursuant to an agreement under this Act 
as a certifying officer shall, in the absence of gross negligence or intent 
to defraud the United States, be liable with respect to the payment of 
any compensation certified by him under this Act. 
Liability of Disbursing Officers 
(f) No disbursing officer shall, in the absence of gross negligence or 
intent to defraud the United States, be liable with respect to any pay-
ment by him under this Act if it was based upon a voucher signed by 
a certifying officer designated as provided in subsection (e) of this 
section. 
Cost of Administration 
(g) For the purpose of payments made to a State under title I I I 
42 use 5
^
0 f-503 ^^ ^^^ Social Security Act, administration by the State agency of 
such State pursuant to an agreement under this Act shall be deemed 
to be a part of the administration of the State law. 
REGULATIONS 
SEC. 12. The Secretary is hereby authorized to make such- rules 
and regulations as may be necessary to carry out the provisions of 
this Act. Such regulations shall include regulations prescribing the 
method of computing an average w eekly benefit amount where there is 
more than one weekly benefit amount payable in a period. 
FEDERAL EXTENDED COMPENSATION 
ACCOUNT 
Establishment of Account 
74 Stat. 970. 
SEC. 13. Title I X of the Social Security Act is amended by adding 
lote. 
at the end thereof the following new section: 
" F E D E R A L 
E X T E N D E D COMPENSATION 
ACCOUNT 
"Establishment of Account 
"SEC. 905. (a) There is hereby established in the Unemployment 
Trust Fund a Federal extended compensation account. For the pur-
42 use 1104. 
poses provided for in section 904(e), such account shall be maintained 
as a separate book account. There are hereby authorized to be ap-
propriated, without fiscal year limitation, such amounts as may be 
necessary to make the payments of compensation provided by sections 
3 and 8 of the Temporary Extended Unemployment Compensation 
Act of 1961 and the reimbursements provided by section 4 of such 
Act. The amounts so appropriated shall be transferred from time 
75 S T A T , ] 
PUBLIC LAW 87-6-MAR. 24, 1961 
15 
to time to the Federal extended compensation account on the basis 
of estimates by the Secretary of the Treasury after consultation with 
the Secretary of Labor of the amounts required to make such pay-
ments and reimbursements. Amounts so transferred shall be repay-
able advances (without interest), except to the extent that such 
amounts are used to make the payments of compensation provided 
by sections 3 and 8 of the Temporary P^xtended Unemployment Com-
pensation Act of 1961 to individuals by reason of the exhaustion of 
their rights to unemployment compensation under title XV. 
Such 
^^^^^oj^iaei 
repayable advances shall be repaid by transfers, from the Federal 1371. 
extended compensation account to the general fund of the Treasury, 
at such times as the amount in the Federal extended compensation 
account is determined by tlie Secretary of the Treasury, in consulta-
tion with the Secretary of Labor, to be adequate for such purpose. 
"Transfers to Account 
"(b) The Secretary of the Treasury shall transfer (as of the close 
of each month in the calendar years 1963 and 1964), from the em-
ployment security administration account to the Federal extended 
compensation account established by subsection (a), an amount de-
termined by him to be equal to 50 percent of the amount by which— 
"(1) transfers to the employment security administration ac-
count pursuant to section 901(b) (2) during such month, exceed 
^2 use 1101. 
"(2) payments during such month from the employment se-
curity administration account pursuant to section 901(b)(3) 
and (d). 
If for any such month the payments referred to in paragraph (2) 
exceed the transfers referred to in paragraph (1), proper adjustments 
shall be made in the amounts subsequently transferred. 
"Transfers to State Accounts 
"(c)(1) The Secretary of the Treasury shall transfer (as of 
December 31, 1963), from the Federal extended compensation ac-
count to the accounts of the States in the Unemployment Trust Fund, 
the balance in the Federal extended compensation account as of such 
date. Such balance shall be determined by deducting from the 
amount in the account on December 31, 1963, the amount of the out-
standing advances made to such account pursuant to subsection (a). 
"(2) Each State's share of the balance to be transferred under this 
subsection— 
"(A) shall be determined by the Secretary of Labor and, certi-
fied by him to the Secretary of the Treasury before that date on 
the basis of reports furnished by the States to the Secretary of 
Labor before December 1,1963, and 
"(B) shall bear the same ratio to the balance in such account 
as of December 31, 1963, as (i) the amount of wages subject to 
contributions under such State's unemployment compensation law 
during 1961 and 1962 which have been reported to the State 
before May 1,1963, bears to (ii) the total of wages subject to con-
tributions under all State unemployment compensation laws 
during 1961 and 1962 which have been reported to the States 
before May 1, 1963. 
"Termination of Account 
"(d) Except as provided by subsection (c), no transfer to or 
from the Federal extended compensation account sliall be made after 
December 31, 1964." 
16 
PUBLIC LAW 87-7-MAR. 24, 1961 
[75 ST A T . 
26 u s e 3301. 
26 U&C 3302. 
42 u s e 1101. 
TE3IP0RARY INCREASE I N RATE OF TAX 
Temporary Increase 
SEC. 14. (a) Section 3301 of the Internal Eevenue Code of 1954 
(relating to the rate of the Federal unemployment tax) is amended 
by adding at the end thereof the following new sentence: "In the case 
of wages paid during the calendar years 1962 and 1963, the rate of 
such tax shall be 3.5 percent in lieu of 3.1 percent." 
No Change in Credits 
(b) Section 3302(d) (1) of such Code (relating to credits against 
tax) is amended to read as follows: 
"(1) KATE OF TAX DEEMED TO BE 3 PERCENT.—In applying sub-
section (j;^.),! the tax imposed by section 3301 shall be computed at 
the rate 01 3 percent in lieu of 3.1 percent (or, in the case of the 
tax imposed with respect to the calendar years 1962 and 1963, in 
lieu of 3.5 percent)." 
SEC. 15. Notwithstanding section 901(c)(1) (A) of the Social Se-
curity Act, the limitation on the amount authorized to be made avail-
able for the fiscal years ending on June 30, 1961, and 1962, for the 
purposes specified in such section 901(c) (1) (A) is hereby increased 
to— 
(1) $385,000,000 for the fiscal year ending June 30, 1961, and 
(2) $415,000,000 for the fiscal year ending June 30, 1962. 
Approved March 24, 1961. 
March 24, 1961 
[H. R. 5075] 
Public Law 87-7 
AN ACT 
To provide temporary extended railroad unemployment insurance benefits, and 
for other purposes. 
Temporary 
Ex-
t e n d e d 
Railroad 
Unemployment In?-
surance 
Benefits 
Act of 1961. 
53 Stat. 1113. 
45 u s e 367. 
Ante, p. 8. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of Amev^ca in Congress assembled, That this Act may 
be cited as the "Temporary Extended Railroad Unemployment Insur-
ance Benefits Act of 1961". 
SEC. 2. An employee as defined in the Railroad Unemployment 
Insurance Act who has, after June 30, 1960, and before April 1, 
1962, exhausted (within the meaning prescribed by the Railroad Re-
tirement Board by regulation) his right to unemployment benefits 
under the Railroad Unemployment Insurance Act, shall be paid unem-
ployment benefits in accordance otherwise with the provisions of 
such Act for days of unemployment, not exceeding sixty-five, and 
not exceeding in the aggregate, an amount equal to 50 per centum 
of the total amount of unemployment benefits which were payable to 
him in the benefit year in which he last exhausted his rights before 
making his first claim under this Act, which occur in registration 
periods, as defined in the Railroad Unemployment Insurance Act, 
beginning on or after the fifteenth day after the date of enactment 
of the Temporary Extended Unemployment Compensation Act of 
1961, and before April 1, 1962, and which would not be days with 
respect to which he would be held entitled otherwise to receive unem-
ployment benefits under the Railroad Unemployment Insurance Act: 
Provided^ That an employee entitled under this section to benefits for 
a day before April 1, 1962, may receive such benefits for days in regis-
tration periods which begin before July 1, 1962: Provided 
further^ 
That payment of benefits otherwise provided for in this Act shall