What is the solvency assessment?
The state maintains a general account known as the “solvency account” which is used to finance benefits that are not chargeable to an individual employer account. These include charges for dependency allowances, benefits paid to individuals who leave employment for what are considered to be an urgent or compelling personal reasons, additional benefits paid to claimants who are in approved training programs, and benefits paid and charged to accounts whose reserves have been depleted. This mechanism distributes appropriate costs proportionally among all employers. All contributing employers are required to pay the additional solvency assessment. In addition interest earned on the unemployment insurance trust fund balance is also credited to this account. A reserve percentage is determined for the solvency account in the same way one is determined for individual employer accounts. For the solvency account, the formula used is the ratio between the closing balance of the account and the to
