550 Unemployment Compensation

551 Overview

551.1 Legal Guidelines

551.11 Administration

The Unemployment Compensation for Federal Employees Program (UCFE) is administered by the states under separate agreements with the U.S. Secretary of Labor. Under these agreements, the states are agents of the United States and take, adjust, pay, or deny claims for unemployment compensation. Based on wage and separation information supplied by the Postal Service, the state agency determines under its state employment security law the postal employee’s entitlement to unemployment compensation.

551.12 Liability

Benefit payments are made to former postal employees by the states under the agreements between the states and the U.S. Department of Labor. The Postal Service then reimburses the states through the Department of Labor.

551.13 Illegal Claims

Federal law provides criminal penalties for anyone who knowingly makes a false statement or representation of a material fact, or knowingly fails to disclose a material fact, to obtain or increase for self or for any other individual unemployment compensation benefits for federal employees.

551.2 Qualification Factors

Requirements for unemployment compensation benefits vary from state to state in accordance with each state’s employment security law. However, each state law requires that a claimant:

  1. Be unemployed or be employed less than full–time as defined by the state employment security law with earnings less than an amount specified in the state law.
  2. Register for work and file an unemployment compensation claim at a local state employment security office.
  3. Have worked a specified amount of time or have earned a specified amount of wages, or both, within a certain period.
  4. Be able to work.
  5. Be available for work.
  6. Be actively seeking work.
  7. Report periodically to the local state employment security office.

551.3 Disqualification Factors

Disqualification provisions vary from state to state. In the majority of states, employment security laws provide for a period of total disqualification or for a penalty period of temporary disqualification for certain types of separations. A former postal employee is not disqualified if the separation was an involuntary termination of employment for other than misconduct, or if the separation was a voluntary termination or resignation based on good cause. The most common reasons for disqualification are:

  1. The claimant was discharged for misconduct.
  2. The claimant quit the job voluntarily without good cause.
  3. The claimant refused a suitable job without good cause.

551.4 Information to State Employment Security Agencies

551.41 Information Required

The Postal Service furnishes state employment security agencies certain salary and separation information concerning claimants who are or have been employed by the Postal Service. This information is processed and returned to the state agency by the Eagan ASC within 4 workdays after receipt of the request. The information includes:

  1. Periods of Postal Service employment.
  2. Amount of remuneration for service.
  3. Amount of lump sum terminal leave payments and periods of time for which the lump sum payment was made.
  4. Reason(s) for separation.
551.42 Privacy Act Requirements
551.421 Authority to Disclose

Release of wage and separation information to a state employment security agency can be made without written authorization from the former Postal Service employee.

551.422 Accountability of Disclosure

To meet the Privacy Act disclosure accounting requirements, the state coordinators described in 552.3 receive from the Eagan ASC copies of Unemployment Compensation for Federal Employees Form ES 931, Request for Wage Separation Information; Form ES 934, Request for Information or Reconsideration of Federal Findings; Form ES 936, Request for Verification of UCFE Wage and Separation Information Furnished on Form ES 931; and PS Form 2342, Request: Unemployment Compensation Data, and PS Form 6803, Wage and Separation Information (ES 931) (3–part continuous). These forms are to be retained by the state coordinator for a period of 3 years. The Eagan ASC maintains the PS Form 6803 Issue Report (Program No. PHE100) on microfiche for a period of 5 years. State coordinators are to maintain hearings and appeals case files for 5 years. Official Postal Service records control schedules should be consulted to determine retention requirements by state coordinators and installation heads.