Would you file for unemployment?

[Mr._Graybeard]

This is how I felt. My company even said they would not dispute the claim. Seemed to encourage filing. However, when I read the rules from the state, there was a requirement to look for a job. I wasn’t going to take a job and I wasn’t going to lie. So, if you can do it without falsifying anything, then I’d do it.

I’m not sure, but I think I heard that they suspended the job search requirement during COVID, so you may want to look into that.

Yes, right now it's very likely due to federal Covid relief legislation that the job search requirement is suspended. The Department of Workforce Development website in my state spells that out. So unemployment benefits are probably a gimmie for now.

But lying to receive unemployment benefits is fraud.

 

[stepford]

Perversely, bad economic times can be good for getting UI. Back in 2009-11 policies designed to relieve the Great Recession extended UI in my state from 26 weeks to 2 years. Similarly now elements of the COVID relief packages significantly increase the amount and duration of UI payments. The terms of my (negotiated, but nominally involuntary) RIF allowed me to file for unemployment. Sadly, times were good in 2015 and the payments only lasted for 6 months. Cue the world's smallest violin.

 

[corn18]

It is amusing that the OP posted this thread, rather than just doing it. Was your spider sense tingling?

Yes. I don't need it, but it would total over $23,000 and that is not chump change.

 

[Fermion]

I would file for the unemployment. It is just another example of one is entitled to do so and it is legal, why not take advantage of what there is to offer.

I am kind of on the fence about all of this and wondering where people draw the line on ethics vs legality.

For example, in our state (maybe most states), you can qualify for Medicaid based on monthly income, not yearly. So if you took out $200,000 from your Roth in December but had no other income, you could get free healthcare from Jan to November.

Totally legal.

 

[tb001]

As others have said, the requirements to search for a job are, at least in some states, suspended right now. There are also extra covid related payments that can be quite significant. And the typical limits on number of weeks you can collect have also been suspended. The cobra funding for 5 months is also pretty huge. All in all it can add up to a lot of extra money.

Whether you feel like it’s the right thing to do, that’s up to you. Would you have quit if you didn’t separate from your company?

 

[Out-to-Lunch]

I am retiring this summer, and will have a modest separation package. I just got the following email:

I am writing to inform you that you will be receiving an auto-generated email from [employer] regarding Unemployment Benefits. The email will be received within 7 days of your separation date. The subject line of the email will be Unemployment Benefits Notification.

Why are you receiving this notification?
On 9/29/2020, Governor Evers signed a new emergency rule to comply with certain requirements of the Emergency Unemployment Insurance Stabilization and Access Act.
As such, [employer] is required to notify all separating employees about the availability of Unemployment Insurance at the time of separation.
There are no exemptions - This notification is sent to all separating employees regardless of the reason of separation (e.g. retirement and/or separation incentive)

 

[corn18]

As others have said, the requirements to search for a job are, at least in some states, suspended right now. There are also extra covid related payments that can be quite significant. And the typical limits on number of weeks you can collect have also been suspended. The cobra funding for 5 months is also pretty huge. All in all it can add up to a lot of extra money.

Whether you feel like it’s the right thing to do, that’s up to you. Would you have quit if you didn’t separate from your company?

No, I would not have quit.

 

[tb001]

No, I would not have quit.

Well, you’re well within your rights to file. I wouldn’t lie about looking for a job, but given that requirement is suspended anyway, it doesn’t really matter.

If you were offered a lucrative three month (or other such short term) consulting deal would you do it?

 

[corn18]

Well, you’re well within your rights to file. I wouldn’t lie about looking for a job, but given that requirement is suspended anyway, it doesn’t really matter.

If you were offered a lucrative three month (or other such short term) consulting deal would you do it?

Yes.

 

[EastWest Gal]

Are you retiring then? If not, file for unemployment, but do a job search. If you are retiring, do not file. Your neighbors, your fellow taxpayers, your state, needs the money more than you right now. Make sure you are doing things legally. And also follow your conscience.

 

[tb001]

Are you retiring then? If not, file for unemployment, but do a job search. If you are retiring, do not file. Your neighbors, your fellow taxpayers, your state, needs the money more than you right now. Make sure you are doing things legally. And also follow your conscience.

It is legal for him to collect unemployment. I think you can debate the morality of it, if he considers himself retired.

In my opinion, if you’re open to work and would take work if offered, I would file.

 

[RetiredAndLovingIt]

Keep in mind, both you and your employers have been paying into this fund all your working days, that's what it's there for. I hate the word "entitled" but in this case you should absolutely file for benefits and depending on your age you may also qualify for retraining in a new career if you so desired.
I think employers have realized that it's far more cost effective to show compassion when terminations occur and by eliminating the position it qualifies you for unemployment and of course shields them from being sued especially when they offer you a financial incentive and/or benefits to sign a termination agreement so you can leave with some dignity and a handshake.

 

[FIREd_2015]

You didn't say if your exit package includes health insurance or not or if you're going on ACA. My understanding is there is a provision in the new stimulus bill that just passed that says if you're on unemployment for even just 1 week in 2021 then you'll get enhanced ACA tax credits regardless of your actual year-end income. So if you're going on ACA this is something to consider.

Added: If you're going on COBRA and it's due to a layoff, the new stimulus bill will subsidize a large portion of the COBRA payment.

 

[aaronc879]

I would not. Never have and it just seems wrong when you have severance.

It's no more wrong than millionaires taking a subsidy on their ACA.

 

[Ian S]

DH was furloughed last April due to covid and then his position was eliminated as of October 1 last year. He has received unemployment since last April except for the period late last year when he got severance payments for 9 weeks. He's back on unemployment and because of covid is not required to look for a job. Once the pandemic is in the rear view mirror, he hopes to get a job similar to what he had but his industry may be forever downsized as a long term result of the pandemic. He's also in his 50's with no college degree which doesn't auger well for a good paying job like he lost.

Oh well, he can always FIRE since we are fine financially but having a job provides structure to his life that he likes. With the new enhancements to the ACA, FIRE for him looks even better but it's a bridge we will cross when appropriate.

 

[38Chevy454]

I am in the file and take unemployment if you meet the reqts. Uncle Sam just approved additional $300/week benefit on top of state amounts. Just because you are close to retirement does not mean you can't get the unemployment.

 

[georgemoe]

I was in this situation last year. Toyed with the idea of filing but in the end I decided to take a voluntary separation and got a buyout. I retired as planned and did not file a claim. Not regretting it.

 

[Dalmore]

My contract between my S-Corp and MegaCorp ended last June. I could have availed myself of a PPP loan and unemployment with extra benefits, but I knew I was going to retire and felt that taking advantage of the situation would not be the ethical thing to do.

 

[pacergal]

When I filed for UI twice in the past, you had to send in a list with at least three contacts each week, with name and address of person/company you connected with. If you were offered a job and refused, you were denied UI from then on. This was several years ago.
Don't know if current requirements are the same, or if COVID has upended everything.

I personally would not file for it if my reason for leaving my job was retirement. It would be an ethical/moral dilemma for ME. And that is the question you posed.

 

[corn18]

When I filed for UI twice in the past, you had to send in a list with at least three contacts each week, with name and address of person/company you connected with. If you were offered a job and refused, you were denied UI from then on. This was several years ago.
Don't know if current requirements are the same, or if COVID has upended everything.

I personally would not file for it if my reason for leaving my job was retirement. It would be an ethical/moral dilemma for ME. And that is the question you posed.

This is why I asked. They gave me one hellofa package which allowed me to not work anymore if I don't want to. They didn't have to do that.

 

[pacergal]

This is where your own ethics come to light.
It sounds like you were blessed with a great good bye package and have the means to retire.

To ME, UI is for those who are between jobs, often due to no choice of their own, and have limited means to pay bills.
I have a hard time with millionaires who manipulate their income to qualify for ACA subsidies, when they clearly can qualify to pay on their own. Yes, I know there are laws that allow that. But that is just Me and my own moral compass on what I would do.

You have to do what your heart and mind tell you is right for YOU. and what the law allows.

 

[Dtail]

This is how I felt. My company even said they would not dispute the claim. Seemed to encourage filing. However, when I read the rules from the state, there was a requirement to look for a job. I wasn’t going to take a job and I wasn’t going to lie. So, if you can do it without falsifying anything, then I’d do it.

I’m not sure, but I think I heard that they suspended the job search requirement during COVID, so you may want to look into that.

The other thing I recall is the severance being considered income that needed to be offset against any unemployment. I think I figured I could get around that, but the job search is due was still there.

Also, when I had to decide this, it was a lot less money. Given the amount currently provided, I might try a little harder to fit my square peg in the round hole.

From my perspective, I actually was looking for work, but couldn't find any, but thankfully I discovered I could retire.
So no guilt here whatsoever.

 

[Ian S]

When I filed for UI twice in the past, you had to send in a list with at least three contacts each week, with name and address of person/company you connected with. If you were offered a job and refused, you were denied UI from then on. This was several years ago.
Don't know if current requirements are the same, or if COVID has upended everything.

I personally would not file for it if my reason for leaving my job was retirement. It would be an ethical/moral dilemma for ME. And that is the question you posed.

Well, here in Arizona, covid has changed everything regarding UI. When DH filled out the forms last April, there was no requirement nor actually any opportunity to input efforts to obtain a job. No requirement since either. Of course, if he could get his old job back, he'd go in a minute but frankly, I don't think that's going to happen even when the pandemic ends. If he can get a comparable job, he'll get it. If not he might just FIRE.

 

[bluelight]

When my position was eliminated in 2011, I received 6 months of severance and full medical benefits. In the state that I lived in at the time (NJ) I was able to collect UI while I received the severance. I never saw a reason to not collect UI while my severance was in effect.

 

[Bamaman]

When MegaCorp decided to "retire" employees 55 years of age and older in 2008, we were paid a year's severance pay and a additional pay equal to social security payments until age 62. This was separate of our defined pensions. And they made us move our 401Ks out of the company plan.

We were able to file for unemployment for 50 weeks at the time. I felt bad every Sunday night when I went into the State computer system and answered their questions about looking for a job actively in the last week. But a lot of money had been paid over the years for unemployment taxes. I never looked for another job one minute of those 50 weeks. On the other hand, our unemployment checks weekly are no where near that of many other states--like California.