unplugged, smile and puzzle

[semtex]

I was told to go last week.
I was working really hard to hide the smile at the final meeting.

FIRE!!!

This morning I was trying to claim the unemployment. One issue popped up.

location: NY
separation agreement: company pay 10 month salaries and COBRA from March to Nov.

Since my severance payment is much higher than the unemployment benefits, it means I could not claim it, right?

My weekly salary is around 3.5K, the NY max unemployment rate is 420 PER week.

I know I could always get some wise from your guys.

 

[Rianne]

Yey! Congrats. Are you planning to stay in NY? DH had a similar severance with HI, before ACA. I had a pre-existing condition and the HI market was a disaster after HI with company then COBRA. We managed that MAGI down, always lived frugally so NBD. Enjoy and look forward to your posts.


Our smile turned into a jump up and down dance, high five then oh Sh_t.

 

[REWahoo]

separation agreement: company pay 10 month salaries and COBRA from March to Nov.

Since my severance payment is much higher than the unemployment benefits, it means I could not claim it, right?

I think you are correct.

Not sure about NY, but in the states where I did business your 10 month severance pay would be considered income for that period and make you ineligible to draw unemployment during that time.

 

[SecondCor521]

I agree with REWahoo. You might check to see about claiming unemployment in November when your severance "runs out".

 

[semtex]

Yey! Congrats. Are you planning to stay in NY? DH had a similar severance with HI, before ACA. I had a pre-existing condition and the HI market was a disaster after HI with company then COBRA. We managed that MAGI down, always lived frugally so NBD. Enjoy and look forward to your posts.


Our smile turned into a jump up and down dance, high five then oh Sh_t.

yes, we will stay. My wife is still working. we will hang around until our kids go to colleges. long time to go.

 

[Aerides]

It varies by state. Some require you to take unemployment from Day 1, serial w/severance, and can only get UE that exceed severance. Some can take after, but depends on length. ymmv it's very state-by-state.

In FL I was not able to take it with a long severance as it ended at 6 months and my package was longer.

 

[semtex]

I think you are correct.

Not sure about NY, but in the states where I did business your 10 month severance pay would be considered income for that period and make you ineligible to draw unemployment during that time.

I googled around. it seems I have to wait until severance payment runs out.

 

[semtex]

I joined this website around 12 years ago.

at that time I first heard FIRE and got hooked.

I hit a bumpy road. I speculated huge at stock market. finally my inside energy burned out. I accepted the idea that stock market is a place to keep purchasing power.

but stock market did give me the opportunity. otherwise, I have no way to get this stage.

 

[cathy63]

My state requires that you be actively looking for a job in order to collect unemployment and they do random follow-up calls and surveys to find out what actions you took during the prior week. If NY has a similar requirement, and you don't look for work, then you may not be eligible for unemployment compensation at all.

 

[Jerry1]

Congratulations. I had the same "problem" with unemployment. The company provided me with a nice severance so I didn't bother trying to claim. Plus, there is that step about actively looking for work. I couldn't even fake that. Just got on with my life and am very happy despite losing out on unemployment which would have been about $5-6K if I got the max time and money. Part of retiring is getting rid of things you don't want to do and dealing with the unemployment office was certainly one of them.

 

[Dtail]

Not sure about NY, but in NJ one can receive unemployment even though they are receiving severance payments simultaneously.

 

[GravitySucks]

I received a one time lump sum in NY state and did receive UI payments. I did actively look for work in a different field though.

 

[markelp]

I received a one time lump sum in NY state and did receive UI payments. I did actively look for work in a different field though.


OP, is your severance a single, one time check or is it paid monthly/weekly? Best to check with the NY State DOL or website:

https://www.labor.ny.gov/ui/claimantinfo/beforeyouapplyfaq.shtm#19

 

[Spock]

If it works for you:
In my state you can start unemployment up to 1 year after termination.
Since I had worked a partial year, I waited until year end to start the claim, putting most of the (meager max $240/week, 26 week max) compensation into the following year where my income taxes were 0%.

 

[Perryinva]

Most companies that offer severance have you sign all sorts of documents, waiving any right to sue for the involuntary severance, and sometimes, waiving the right to unemployment is in there as well. Don’t know if this is a state thing or not, but worth a mention.

 

[cathy63]

Most companies that offer severance have you sign all sorts of documents, waiving any right to sue for the involuntary severance, and sometimes, waiving the right to unemployment is in there as well. Don’t know if this is a state thing or not, but worth a mention.

It is a state thing. OP is in NY, so he cannot sign away his legal right to apply for unemployment compensation. (Note that he has a right to apply for it, not a right to receive it.)

 

[fritz]

I have worked for several corporations' HQs that were located out of my home state. Either had a home office, or rented space from corporate owned offices in my state.

On one occasion, when the corporation was taken over, by another corporation, faced termination at change in new company's marketing strategy (turned out to be the best thing for my career as I had stayed too long with them). My severance package was on payroll (like I was still working) for period certain time frame, and then monthly severance (like I was still working) for another period certain time frame. I was also able to collect unemployment with termination agreement. Even if I starting working at another company - full severance package would be paid. If I didn't sign the agreement, or filed suit against the corporation for wrongful termination - severance package would be withdrawn.

On another occasion, when I had decided to leave mega corp world and join a start up engineering design company (at the absolute worst time frame - 2008), found myself out of a great paying job in 2009 when they went bankrupt. Again, worked for HQ, and lived out of state with a home office. Spent a year on unemployment with an extension given, due to that awful time frame - while I was making up my mind about retiring early at 58, which I did.... I actually consulted for them "very part-time" when they restarted the company in 2011. I had lost some pretty good (yet to be paid) compensation when it went under, and it was an opportunity to earn it back and then some.

I would talk to your former company's HR dept. about your severance agreement. Given your stated compensation, it appears you worked for a decent sized company. Someone in HR there should be able to provide you with definitive answers.