                                 CODE OF VIRGINIA

FUND BALANCE FACTOR (§ 60.2-533)

A. As of July 1 of each calendar year, a fund balance factor, rounded to the
nearest one-tenth of a percent, shall be determined as follows:
			The net assets which shall be compared with the &#8220;adequate
balance&#8221; as determined in subsection B of this section, shall be comprised
of the balance which shall stand to the credit of the account of the
Commonwealth of Virginia in the Unemployment Trust Fund in the Treasury of the
United States; amounts withdrawn therefrom but not expended; employer payments
not yet transferred to such account; net employer taxes receivable; and amounts
due from claimants and other states, minus payables due to claimants, employers,
other funds of the Virginia Employment Commission, and other states. The
resulting percent shall be termed the &#8220;fund balance factor,&#8221; except
that if the percent determined is less than fifty percent, the fund balance
factor shall be fifty percent.

B. As of July 1 of each calendar year, the Commission shall determine the
&#8220;adequate balance&#8221; for the trust fund as follows:
			For the twenty-year period ending July 1 of the year of determination, the
highest ratios of benefits divided by total wages of three separate consecutive
four-quarter periods shall be averaged and multiplied by 1.38 to determine the
fund adequacy multiplier. The fund adequacy multiplier shall be multiplied by
the total wages for the year in question to determine the &#8220;adequate fund
balance&#8221; for that year.

C. A fund building rate of two-tenths percent shall be added to all experience
rating rates established pursuant to &#xA7; 60.2-531, and to all assigned tax
rates established pursuant to &#xA7;&#xA7; 60.2-515, 60.2-526, 60.2-527 and
60.2-538, except that such rate shall not be applied if the fund balance factor
determined pursuant to subsection A of this section exceeds fifty percent.

HISTORY: 1981, c. 606, § 60.1-85.1; 1986, c. 480; 1993, c. 249; 1996, c. 305;
1997, cc. 530, 674.