collect unemployment????

[engr]

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.

 

[2B]

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.

 

[Al in Ohio]

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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[jim584672]

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.

 

[bingybear]

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.

 

[heeyy_joe]

If you can, avoid the teat of this government pig.

 

[marko]

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.

 

[Senator]

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.

 

[jim584672]

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.

 

[Senator]

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.

 

[marko]

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!

 

[photoguy]

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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[rodi]

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

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.

 

[rodi]

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.

Frequently Asked Questions

 

[Senator]

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%.

 

[Texas Proud]

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....

 

[ERD50]

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.

-ERD50

 

[Mr._Graybeard]

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.

 

[Redbugdave]

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.

 

[DFA]

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.

 

[2B]

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....

Some firms in the E&C business have "company convenience leave." You're basically laid off but if you have PTO you can take it. When the PTO is gone, you continue to get benefits but you have to physically pay your share of any costs. When on this type of leave, you aren't eligible for UEI. Companies will only typically do this for a couple of months and then only when they expect/hope to bring you back to the regular payroll.

I've known people to refuse "company convenience leave" to get the unemployment. If you hope to continue working, a good half of any UE would go towards your COBRA costs unless your spouse is insured. It also probably puts you at the end of the line if people start getting called back.

 

[Al in Ohio]

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.

Then the state you live in is pretty liberal in policy. I know in my state they calculate just how long that severance amount will carry you under a formula and it would still work out to be a long time before eligibility.

The analogy is the same as if you suffered loss from someone's actions say in an auto accident in which the other party was at fault. You sued and won a settlement. Your insurance company only pays out what is covered under the insurance policy minus what you won it court. It's unemployment insurance. It's there to make sure you don't go hungry and can pay your bills in case there is no rainy day fund of your own to give you time to get another job. If you get a settlement or severance, then your already taken care of for that length of time or equivalent income period.

I'd suggest you just call up your local office, be honest with your final separation terms and outlay, and see what they say.

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[brett]

I had a golden handshake but had to negotiate. One of the first things my lawyer said was to register for employment insurance. I did.

Ended up taking 38 weeks of insurance. I was entitled to it. I had never made a claim in 42 odd years of paying in. Did I feel guilty knowing that I had no intention of returning to work...unless it was a fabulous offer. No.

 

[Walt34]

As mentioned it varies by state. Since your HR dept. mentioned it, it may be expected, go ahead and apply. The worst they can do is say "no".

While it is generally true that while receiving UI benefits one has to be actively searching for work, what defines "searching for work" varies widely. It may be very little effort at all.

 

[outabout]

Thank you

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.

Thank you. I am in CO and is faced with the similar situation. This helps me understand how it work in CO.