Am I eligible for unemployment benefits if I accept a severance package?

Answer:
As a general rule, the Federal-State Unemployment Program provides

temporary financial assistance to unemployed workers who have lost their jobs through no fault of their own.

Eligibility for unemployment benefits stays within federal guidelines, but varies from state to state, with each state administering its own separate unemployment insurance program. Reduction or denial of benefits after receiving dismissal pay, retirement pay, severance packages or other employer-paid compensation depends on each state. The amount and what period of time the additional compensation covers are also factored into each state’s decision. To learn the status of a severance package in addition to unemployment benefits in each state, workers should contact their local unemployment office or visit the Web site of the U.S. Department of Labor.

Unemployed workers usually must indicate they have received a severance package or other employer-paid compensation when filing for unemployment benefits and are expected to list the amount of compensation..

Workers must also meet the state’s criteria for employment that usually includes a measure of time known as the “base period.” This generally includes the first four of the last five calendar quarters prior to filing and earned the minimum amount of wages as determined by state guidelines.
For more information, contact the U.S. Department of Labor at http://www.dol.gov ..


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