If you've been following the news about the compromise brewing between President Obama and Republicans on extending the Bush-era tax cuts, then you know the President demanded an extension of emergency unemployment benefits. Yet, there's some misunderstanding about what this 13-month extension actually does. For those who have been collecting unemployment insurance for the maximum amount possible of time -- 99 weeks -- it won't help. They'll still be cut off, while the program that allows extended benefits will be renewed, with the cap remaining at 99. Calculated Risk explains:
Emergency Unemployment Compensation (EUC) comes in four tiers:
Tier I is for 20 additional weeks;
Tier II is for up to 14 weeks;
Tier III is for up to 13 weeks;
Tier IV is for up to 6 weeks.
As an example, if a worker was receiving Tier I benefits, they will be able to move to Tier II benefits with this proposed extension. Without the extension of the qualifying dates, workers would not be able to move to the next tier.
So while this helps those who have been unemployed for fewer than 99 weeks for the next 13 months, it doesn't help those who hit the limit.
Read the full story at Calculated Risk.