Senate Approves Further Extensions to Jobless Benefits
July 27, 2010 - NORTON, MA - For the fourth time in seven months, new legislation from Washington DC continues to assist those individuals who are unemployed and have exhausted (or facing exhaustion of) their original 26 weeks of state unemployment insurance (“UI”) benefits.
On July 21, 2010 the Senate approved the “Unemployment Compensation Extension Act of 2010” and extend UI provisions. The bill was signed into law by President Obama the following day.
The primary extension features of the bill include:
- Application to the Emergency Unemployment Compensation (“EUC”) program, which provides up to 53 weeks of federally-funded extended UI benefits is extended from June 2, 2010 to November 30, 2010. The period during which individuals may claim and be paid EUC is extended from ending November 6, 2010 to April 30, 2011;
- 100 percent federal funding for the Extended Benefits (“EB”) program, which provides up to an additional 13 to 20 weeks of UI benefits in certain states. The state option to continue EB payments is extended from November 6, 2010 to April 30, 2011.
The bill does not provide additional unemployment beyond the 99 weeks an individual could receive in total state and federal UI in certain states; an extension to the period an individual may qualify for Federal Additional Compensation (the extra $25.00 per weekly benefit amount on state and federal UI); and the extension to the eligibility for, and the duration of, the federal COBRA health coverage subsidy.
About Total Management Solutions
For 23 years, Total Management Solutions has set the standard for Supplemental Unemployment Benefit (“SUB-Pay”) Plan development and administration for Fortune 500 companies. Introduced by organized labor and the Department of Labor in the early 1950's, and first issued in a Revenue Ruling by the IRS in 1956, SUB-Pay Plans enable corporations to utilize its paid-in asset of state unemployment insurance taxes to supplement state unemployment insurance benefits with separation pay. When combined, these two benefits reduce a corporation's severance costs by 7.65%-45% while providing their separated or furloughed employees with up to 100% of their pre-layoff wage, plus a 7.65% tax savings, while they transition to reemployment.