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62 PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW

and whose average annual benefits for the period beginning July 1, 1980

and ending June 30, 1983 would, as provided hereinbefore, equal or

exceed five per centum (5%) of the employer's average annual payroll,

shall be allowed to elect as an option the alternative benefit ratio

provided for in this subsection to be used in determining the employer's

Benefit Ratio Factor for the calendar years 1985 and 1986.

(2) Annual benefits for each of the periods July 1, 1981 through

June 30, 1982 and July 1, 1982 through June 30, 1983 shall be

arbitrarily adjusted to equal five per centum (5%) of the employer's

annual payroll for the same period. (3) Such adjusted annual benefits for each of the twelve-month periods shall

be added to the actual annual benefits for the period from July 1, 1983

to June 30, 1984 and such sum shall be divided by three (3) to determine

the average annual benefits used to calculate the employer's benefit ratio

factor for calendar year 1985. (4) Such adjusted annual benefits for the twelve-month period ending

June 30, 1983 shall be added to the actual annual benefits for the period

from July 1, 1983 to June 30, 1985 and such sum shall be divided by

three (3) to determine the average annual benefits used to calculate the

employer's benefit ratio factor for calendar year 1986. (5) In addition to the other provisions of this subsection, an employer shall

not be entitled to elect the alternative benefit ratio of this subsection

unless such employer has no pending appeals of benefit charges and

agrees to waive all right to appeal any benefit charges, applicable to the

period July 1, 1980 through June 30, 1983.

(e) (1) Except as provided in paragraph (2), the State Adjustment Factor for a

calendar year shall be computed as of the computation date for such

year to a tenth of a per centum, rounding all fractional parts of a tenth of

a per centum to the nearest tenth of a per centum, but in no event less

than zero, according to the following formulaa:

Bdr - Dcr

------------------------------- X 100 = State Adjustment Factor

in which factor "Bdr" equals the aggregate of (1) all benefits paid but

not charged to employers' accounts, plus, (2) all benefits paid and