Unemployment Compensation Reinsurance Act of 1979

Unemployment Compensation Reinsurance Act of 1979 - Increases the Federal unemployment tax by two-tenths of a percent after any calendar year for which the net balance of the reinsurance account (established by this Act) is less than the prescribed maximum balance for such account.

Establishes within the Unemployment Trust Fund a reinsurance account to be funded through the employment security administration account according to a specified formula. Requires the Secretary of the Treasury to utilize funds in the reinsurance account to reimburse a State for a specified percentage of the State's excess regular unemployment compensation costs plus the State's share of payments for extended unemployment benefits for any year during which the rate of regular insured unemployment in the State equals or exceeds: (1) 4.5 percent; or (2) the average rate in such State for the previous seven years by 25 percent. Stipulates that the national rate during such year also must equal or exceed: (1) 4.5 percent; or (2) 125 percent of the national rate for the preceding year. Defines "rate of regular insured unemployment" and "extended benefits" as used in this Act.

Permits a State to credit payments (in lieu of contributions) made into a State unemployment compensation fund against future payments required for such excess compensation costs.

Authorizes the appropriation to the reinsurance account as repayable advances such funds as are necessary to carry out this Act. Makes technical amendments to the Social Security Act to provide for the funding of such account by revenues received from the increase in the Federal unemployment tax as prescribed by this Act.

Requires the Secretary to reimburse a State for the State's share of payments for extended unemployment benefits during calendar years 1975 and 1977.

Cancels repayable advances made to the extended unemployment compensation account for: (1) the Government's share of payments to States for extended benefits during such years; and (2) emergency compensation under the Emergency Unemployment Compensation Act of 1974.