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collect unemployment????
Old 12-21-2014, 06:19 AM   #1
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collect unemployment????

Good morning,

I recently retired May 2014.

I was looking thru old posts and noticed "Retired Today - Escorted out with package! " The poster was jim584672 who joined Feb 2014.

Activity at my w*rk was slowing down and since I was one of the oldest members of my group I figured the "writing on the wall" is not good for me. My DW has a chronic condition so after reviewing our finances I thought if I could volunteer to retire and get a severance package that would be a good thing. I was accepted for being able to leave. I received the usual 2 weeks severance and got an additional 23 weeks pay (one weeks pay for every year of service).

At the exit interview the HR rep mentioned something about trying to apply for unemployment. My thinking then is that since I volunteered to retire then I could not apply for unemployment since I don't plan on w*rking full time again. Somehow I feel it would be an ethics/moral issue if I applied.

I would appreciate feedback on what others have done in a similar situation. Can unemployment be applied for under these conditions? Thanks.
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Old 12-21-2014, 07:02 AM   #2
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If you were officially laid off, you are eligible for unemployment compensation. Volunteering has nothing to do with it but there may be a catch.

Things are slowing down where I am at. I think layoffs are coming. I thought about hanging in there "just in case" but have decided the nominal $20k in unemployment isn't worth it. I will ask Jan 5 if volunteering to be laid off was available. If not, I'll resign.

When I was laid off about a decade ago, my severance agreement stipulated that I could not accept the 26 weeks of severance and apply for unemployment. They were willing to take a hit with the severance but they didn't want their unemployment rate to go up. You might want to check what you signed.
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collect unemployment????
Old 12-21-2014, 07:08 AM   #3
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collect unemployment????

You are not able to collect unemployment if you receive a company severance. Getting severance pay is one of the key items that disqualifies you after separation. That is state unemployment law, regardless of employer stipulation.


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Old 12-21-2014, 07:27 AM   #4
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If the HR rep mentioned UI then they are expecting you will apply and it shouldn't be a problem. As long as you are actively seeking work your claim is valid. Some states require a declaration that you are actively seeking work.

As far as severance preventing UI, it depends on the laws in your state. You could apply and see what happens.
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Old 12-21-2014, 07:33 AM   #5
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unemployment laws may be different state to state. From the Michigan site it looks like if you get all your severance at once, it only effects one week. If it is distributed over time (like your 23 weeks may have been), then you loose 23 weeks of unemployment. There are other conditions.

you really need to check your state rules.
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Old 12-21-2014, 07:35 AM   #6
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If you can, avoid the teat of this government pig.
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Old 12-21-2014, 07:42 AM   #7
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Originally Posted by heeyy_joe View Post
If you can, avoid the teat of this government pig.
I used to think that way.

Over the past several years, I've moved into a "...been payin' for all this stuff for 50 years...where's mine" mindset.
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Old 12-21-2014, 07:46 AM   #8
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I would apply for UE for sure.

Worst case, they deny your claim. It is not illegal to apply, it is illegal to get benefits under false pretenses. Answer the questions honestly, and get what you have coming. After all, UE is an insurance, not a hand out.
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Old 12-21-2014, 07:47 AM   #9
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If you can, avoid the teat of this government pig.
Should I not take Social Security, Medicare, ACA subsidies? Not like we didn't work and pay into the system.
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Old 12-21-2014, 07:49 AM   #10
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Originally Posted by Al in Ohio View Post
You are not able to collect unemployment if you receive a company severance. Getting severance pay is one of the key items that disqualifies you after separation. That is state unemployment law, regardless of employer stipulation.
If you get severance pay in a lump sum, you can apply the next week. If you get it over several weeks/months, you have to wait until the severance runs out.

The fact you got severance pay, means you got laid off. Not retired. You are entitled to any UE benefits that are available.
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Old 12-21-2014, 07:51 AM   #11
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Should I not take Social Security, Medicare, ACA subsidies? Not like we didn't work and pay into the system.
+1 Exactly! I'm tired of the TV pundits who call it 'welfare'. We PAID for this!
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Old 12-21-2014, 08:02 AM   #12
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Unemployment insurance usually requires one to be actively seeking work and willing to accept work. If one cannot do this in good faith, I'd be hesitant about accepting unemployment benefits.



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Old 12-21-2014, 08:20 AM   #13
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I wasn't able to claim it since I resigned. DH was able to claim it even though he was still technically an employee... his employer had reduced his hours to about 4 hours/month. Until they ramped up his hours he reported the few hours he worked, and got a check form UI.

It definitely varies from state to state as to whether severance impacts UI. The one time I took it - back in 1990 when I was laid off, my 2 weeks severance delayed my UI. This was in CA. More recently I had friends laid off who received pay continuation for several months as severance - that did NOT impact their UI here in CA.
From the CA state website
Quote:
How does severance pay affect my eligibility to receive unemployment insurance benefits?

Severance pay is not deducted from unemployment insurance benefits and does not affect your eligibility to receive benefits. The method of payment, such as a lump sum payment or payments paid to you at regular pay period intervals does not change the nature of the payment. However, you must report severance pay at the time you file your unemployment insurance claim.
As mentioned - you have to make good faith effort to look for a job while collecting. This is part of the paperwork you sign. There are gimicks you can use to avoid actually getting a job offer - but it's up to you to determine the ethics of that. My husband was dilligent in his search because that's the kind of guy he is.
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Old 12-21-2014, 08:25 AM   #14
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I just checked and see you're from PA. It looks like they reduce your UI by a portion of your severance... so you may be out of luck.

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Old 12-21-2014, 08:35 AM   #15
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Unemployment insurance usually requires one to be actively seeking work and willing to accept work. If one cannot do this in good faith, I'd be hesitant about accepting unemployment benefits.
I collected UE a while back. All you have to do is put in a resume on line, and watch it disappear. Maybe 3-4 a month. No one ever audit any places. It's a pretty good gig if you can get it.

UE is no different than SS. It's an insurance you pay into, and collect when you need it. The employer pays 100% of the premium, much like SS where the employer pays 50%.
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Old 12-21-2014, 08:39 AM   #16
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Originally Posted by Al in Ohio View Post
You are not able to collect unemployment if you receive a company severance. Getting severance pay is one of the key items that disqualifies you after separation. That is state unemployment law, regardless of employer stipulation.


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This is wrong... at least in Texas...


I have collected unemployment and been paid for severance... I was laid off, no access to work, no expectations of me doing any kind of work... heck, payments for me not to work....

Now, a second time the company said they would continue to pay me but that if they needed me they would call.... THIS means you cannot get UI...

Info above from the source itself... I asked my case worker why I did not qualify for the second one and did for the first....
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Old 12-21-2014, 09:11 AM   #17
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Quote:
Originally Posted by Al in Ohio View Post
You are not able to collect unemployment if you receive a company severance. Getting severance pay is one of the key items that disqualifies you after separation. That is state unemployment law, regardless of employer stipulation.


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This can vary by State. You are painting with a broad brush. IIRC, in some states, severance has no affect on unemployment claims.

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Old 12-21-2014, 09:23 AM   #18
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A number of people who took voluntary separation from my former employer received unemployment pay, but the state clamped down on verification in recent years to the point where documenting your search for work is a part-time job in itself. It wasn't worth the trouble for me for a few hundred bucks a week.
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Old 12-21-2014, 09:29 AM   #19
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I would apply for UE for sure.

Worst case, they deny your claim. It is not illegal to apply, it is illegal to get benefits under false pretenses. Answer the questions honestly, and get what you have coming. After all, UE is an insurance, not a hand out.

I agree with what Senator said. Apply and see what happens.
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Old 12-21-2014, 10:15 AM   #20
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In CO, I applied, but payments were delayed by the following: severance + vacation paid divided by weekly pay rate at employer, equals number of weeks of delay, but I am still able to collect as long as I am actively looking for a job once the delay is over.
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