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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1889.0. "Unemployment vs TFSO" by ELWOOD::CHRISTIE () Fri May 08 1992 12:20

    I have a question about how the TFSO package affects filing for
    unemployment compensation.  How does one go about filing for
    unemployment when one gets a x-week lump sum?  
    
    True situation.  Dec employee got TFSO'd and received 52 weeks
    salary in a lump sum.  He went to file for unemployment and was
    told he wasn't able to file as he received a year's salary.  He
    went back at the end of the year to file and was told that since
    he had no income for the past 2 quarters, he was not eligible to
    file.  Sounds like a catch 22 to me.  
    
    Has anyone else heard of any problems in this area?
    
    Linda
    
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1889.1Some people collect...MIMS::BAINE_KFri May 08 1992 13:158
    One person I know here in ALF was TFSO'd last Oct. and started
    collecting unemployment right away.  She received her lump sum from DEC
    and then sat home for weeks because she was collecting $200 week from
    unemployment. Maybe it depends on your state, but I thought it was all
    determined by the State from which you receive your salary - Mass.
    
    KB
    
1889.2EBBV03::BROUILLETTEMTSNDFri May 08 1992 13:589
RE: .0

State laws vary.  I worked for Vt Dept Emp Sec for six years.  You can file
even when you don't qualify ( they hate to do this - more paperwork), it is
called "pegging your benefits".  The main reason is when your job changes
and your income is going down, or a case like this.  You don't want to do
this if your income is increasing (and other reasons).
I can't remember how far into the future this goes.  You may want to peg your
benefits 26 weeks after receiving a 52 weeks lump sum for instance.
1889.3Questions regarding unemployment.ESMAIL::WOODFORDFri May 08 1992 16:225
    Are former employees in Massachusetts who took TFSO eligible for
    unemployment benefits?  Do they have to wait for the number of weeks of
    pay their packages gave them?
    
    What about Digital retirees?  Can they collect?
1889.4Tax issuesHYEND::PLIEBERMANFri May 08 1992 20:124
    the law varies from state to state. I have a friend who works in NJ,
    and she began collecting unemployment right away. Only problem. When
    she filed her tax return this year, she ended up owing about 3,000.00
    in taxes from the lump sum, which put her in another tax bracket.
1889.5SWAM1::MEUSE_DAFri May 08 1992 20:507
    
    
    ......52 weeks and still out of work...ouch. That's depressing.
    
    sad times indeed.
    
    
1889.6most states (but not all evidently)CSC32::K_BOUCHARDKen Bouchard CXO3-2Wed May 13 1992 18:594
    Most states won't let you collect unumployment until your severance
    from DEC is exhausted. 
    
    Ken
1889.7CSC32::J_OPPELTI like it this way.Fri May 15 1992 20:474
>    Most states won't let you collect unumployment until your severance
>    from DEC is exhausted. 
    
    	So just spend it all right away!
1889.8no goCSOADM::ROTHThe Blues MagoosMon May 18 1992 11:366
Re: .7

Won't work. They figure out an equivalent number of weeks for the lump
sum... 

Lee
1889.9TFSO/unemploymentWMOIS::CAIAZZI_SSue Caiazzi - 273-3559Fri May 22 1992 13:4513
    Ken,
    	My friend was TFSO'd during the first round and was told by the
    TFSO rep that she would not be eligible for unemployment bennies until
    her DEC pay period expired.  She received 72 weeks of pay and waited 73
    weeks after being TFSO'd and could not get unemployment.  She called
    DEC and explained the situation and they basically said "sorry, we
    can't help you".
    	She is now collecting welfare and looking for work.  My advice to
    anyone who is being TFSO'd is go IMMEDIATELY to the nearest
    unemployment office to find out what you are entitled to.
    	I also heard a rumor that former employees that feel they were
    misled by "experts" regarding unemployment after TFSO were going to
    join together and file a class action suit against DEC.
1889.10not FAIRCSC32::K_BOUCHARDKen Bouchard CXO3-2Mon May 25 1992 17:3510
    Unfortunately,if your severance from DEC is more than the standard 26
    weeks of unemployment (or has it been extended now?) states have the
    option of telling you in effect to take a hike. This is UNFAIR and most
    states don't do it. We may see more and more of this especially in
    states with high unemployment. If my state tried to pull that on me,I
    would definitely take part in a class action lawsuit. This is
    especially galling when you consider that you've already paid your fair
    share for unemployment insurance.
    
    Ken
1889.11REGENT::POWERSTue May 26 1992 12:378
>         <<< Note 1889.10 by CSC32::K_BOUCHARD "Ken Bouchard CXO3-2" >>>

>    especially galling when you consider that you've already paid your fair
>    share for unemployment insurance.

In most cases I've heard of (in the US), unemployment insurance premiums 
are paid by the employer, not the employee.  "Extended benefit" programs
may be tax-funded, however.
1889.12ICS::CROUCHJim Crouch 223-1372Tue May 26 1992 13:026
    In the long run all taxes are paid by us, the end user. They get
    pushed down the chain one way or another. Higher unemployment
    taxes could very well mean lower raises, if any, layoffs, etc.
    
    Jim C.
    
1889.13Can anybody in California confirm/deny this?SCAACT::AINSLEYLess than 150 kts. is TOO slowTue May 26 1992 13:417
re: .11

I believe that in California there is a payroll tax on the EMPLOYEE to fund
unemployment benefits.


Bob
1889.14BREAKR::MIKKELSONKill me. I need the money.Fri Jun 05 1992 20:4413
        
    >My friend was TFSO'd during the first round and was told by the
    >TFSO rep that she would not be eligible for unemployment bennies until
    >her DEC pay period expired.  She received 72 weeks of pay and waited 73
    >weeks after being TFSO'd and could not get unemployment.
    
    Unemployment benefits typically only last six months or less.  Do you
    think it's reasonable to pay them to someone who hasn't been able (or
    hasn't tried) to find a find for nearly a year and a half?
    
    - David
    
    
1889.15BREAKR::MIKKELSONKill me. I need the money.Fri Jun 05 1992 20:5015
    
    >Unfortunately,if your severance from DEC is more than the standard 26
    >weeks of unemployment (or has it been extended now?) states have the
    >option of telling you in effect to take a hike. This is UNFAIR and most
    >states don't do it. 
    
    Why is it unfair?  Technically you're being paid by your old company,
    with the advantage of being able to secure other work at the same time.
    If, instead of giving you 26 weeks' pay, DEC kept you around doing
    nothing for six months, you wouldn't be unemployed, but you'd be far
    worse off.  Unemployment benefits are for people who have no income because 
    they have no job, not merely for people who just don't have a job.   
    
    - David
    
1889.16Unemployment benefits DENIED??VLNVAX::OPERATORTue Mar 02 1993 15:4422
    A friend of mine who worked for Digital for over 20 years, got
    TFSO'd in December.  He got his lump sum last week.  He went to
    the Unemployment Office to see when he could open his claim.
    
    The Unemployment Office told him that he will be ineligible to
    collect unemployment benefits.  Even at the end of his severance-pay
    package, if he still hasn't found a job, they said he will be
    ineligible to collect due to a new, recently-passed Massachusetts state
    law that states something to the effect that if you receive a
    severance-pay package from your company, that you cannot receive
    unemployment benefits.
    
    This isn't a question of waiting until the end of your severance-pay
    package versus the 9 weeks; they said he couldn't collect at all.
    
    Another person he knows appealed with a lawyer and had benefits
    re-instated.  However, two other people were denied benefits even
    with appealing with a lawyer.
    
    Has anyone else heard anything about this?
    
    
1889.17I'm sure it's in other topics as wellCVG::THOMPSONRadical CentralistTue Mar 02 1993 16:013
    This has come up time and again. Check out topic 1889 for a start.
    
    		Alfred
1889.18Note 1889 not applicable hereVLNVAX::OPERATORTue Mar 02 1993 16:115
    re: #2
    
    Note 1889 I don't think will apply here as this is supposedly a
    brand-new law Mass. state law that was passed in Nov./Dec.
    
1889.19the irony (if true)LGP30::FLEISCHERwithout vision the people perish (381-0899 ZKO2-2/T63)Tue Mar 02 1993 16:4610
re Note 2396.0 by VLNVAX::OPERATOR:

>     This isn't a question of waiting until the end of your severance-pay
>     package versus the 9 weeks; they said he couldn't collect at all.
  
        It would figure:  just as the TFSO payments approach
        insignificance, they nevertheless qualify to disqualify the
        recipient!

        Bob
1889.20down and out and the State of MA wants to kick youJUPITR::MNORTONThu Mar 04 1993 14:5914
    the new law passed in Sept.
    
    
    If you are getting a package you can not collect until all the weeks
    are used up. and if you go by 36 week you can not collect at all from
    the state.  But you can collect from the Feds.
    
    Example:
    
    You are going to recieve 35 weeks you can collect 1 week from the state
    and 20 weeks form the Feds. Thats if the Feds still has the program
    
    
    The longer you stay the smaller everything gets.
1889.21New Unemployment ruling?HYEND::OPERATORMon May 17 1993 17:2715
    I just heard a rumor today that Digital won some case that affects all
    those who are TFSO'd.
    
    In the past, anyone in Mass. who received a severance-pay package had
    to wait until the end of their severance-pay period to collect
    unemployment.  I even heard of a new law saying that anyone who
    received severance pay since March of this year would be ineligible to
    collect unemployment at all.
    
    The rumor I heard today was that anyone who is TFSO'd from DEC will be
    able to collect unemployment after 7 weeks, no matter what type of
    severance pay you receive.
    
    Does anyone know if this is true?
    
1889.22Recent advicePLOUGH::OLSENMon May 17 1993 19:1822
    	A friend TFSO'd in late 1992 is presented by Mass. unemployment with
    the following scenario:
    
    	Applications (fed? state?) with a effective date (termination plus
    7 weeks) before ~Mar 15 1993 earn benefits from that date.  This
    interpretation originally expired in Nov/Dec 1992, but got extended
    thru the March 1993 date.  Current applications may be filed with an
    appeal to get this treatment, retroactively.  
    
    	Applications with a later date begin to earn benefits when
    severance-pay timing expires.  Current applications fall into this
    category if no appeal is filed, or if the 7 weeks ends after Mar ~15,
    1993.
    
    	Benefits expire 52? weeks from application effective date, not from
    benefit effective date.  Thus, people often wait for severance to expire
    before they apply.
    
    	This was advice at one office, last week.  Your office is your
    office, and next week is next week.  Your mileage may vary.
    
    /Rich
1889.23Mass. says: ask your employerLEVERS::PLOUFFStars reel in a rollicking crewTue May 18 1993 15:3810
    re: .last couple
    
    A TFSO'd colleague related to me the unemployment application
    experience... One office in Massachusetts stated very clearly that it
    was the employer's responsibility to answer questions regarding timing
    and eligibility, and referred this colleague back to DEC for specific
    answers.  The strong hint was to discuss this at the exit interview and
    not take "don't know" for an answer.
    
    Wes