The American Recovery and Reinvestment Act (ARRA) provisions assist the jobless employees in many ways. State offerings vary, so confirm with your local unemployment office to find your suitability.
The Major ARRA Benefits for the Unemployed:
The ARRA funds a new provisional Federal Additional Compensation program that recommends an increase by states in unemployment benefit $25 per week for the period commencing February 22, 2009. Also, numbers of week benefits are available are also asked to be increased from 13 to 20, as per the states intention.
Major COBRA Updates
A new COBRA subsidy is now available to individuals’ who were covered under their previous employer’s health insurance plan and were unwillingly terminated from service during September 1, 2008 and May 31, 2010.
This makes eligible individuals to pay 35 per cent of the COBRA premium according to their previous employer’s health plan, however the subsidy will stand terminated when the individual turns eligible under another group health plan or at the culmination of the nine-month subsidy period.
Moreover, an additional amendment permit qualified beneficiaries to decide on coverage under a second special election period, thus those suffering from a chronic medical condition are benefitted.
Aid for Elderly Employee
There is some good news for the unemployed older, low-income workers aged 55-plus, as they may also gain from an additional $120 million allocated for the Senior Community Service Employment Program. The additional funding is expected to create more training possibilities for these workers, thus helping them be eligible for among the 3.5 million jobs anticipated to be created over the next two years pursuant to ARRA.
Part-Time Employment
Nationally, 8.6 million workers reported working less than full-time for economic reasons, according to the Bureau of Labor Statistics. Yet prior to the ARRA’s passage, unemployed workers in 28 states who were looking for part-time work were not eligible for unemployment benefits.
States may now qualify for federal dollars under the ARRA provided they modernize their unemployment compensation systems, thus many states are reforming their part-time eligibility requirements now.
A Tax Relief
The first component of workers benefits is tax-free now, as the Act brings a tax break for unemployed workers, freeing their initial $2,400 of 2009 unemployment benefits from taxation.
