Jobless benefits rules are tough to untangle

John W. Schoen Senior producer • Profile • E-mail

The recent move by Congress to extend unemployment benefits drew a heavy response from bewildered readers who have been hearing conflicting stories about who is eligible and who isn’t.

That’s not surprising. The current program involves multiple layers of extensions for 50 separate state-run programs. To make matters worse, the latest round of extensions took so long to approve, the program is now running up against a Dec. 31 expiration created by an earlier round of extensions.

The hope is that Congress will extend that deadline and keep benefit checks flowing to the millions of people. Here is what you need to consider if you’re trying to apply for an extension of your benefits.

My husband … has been laid off since Dec. 19, 2008.  He was told by the state that although his previous extension was set to expire this week, he will receive another 13-week extension.  I am confused between the state and federal extensions.  Could you tell me exactly when his benefits with all of the current extensions will expire? 
— Dina M., Tuscon, Ariz.

The simplest way to untangle how the programs work is to start at the beginning.

Unemployment insurance is just that: Workers and employers pay into state-managed funds that provide benefits to people when they lose their job. All workers get regular unemployment benefits for 26 weeks. Eligibility requirements may vary somewhat, but in general you need to show that you are available for work and actively looking for a job.

Returning to school to train for a new job, for example, may eliminate your eligibility if your schedule doesn't allow you take a full-time job.

Once you've exhausted the initial 26 weeks of payments, you can qualify for additional benefits under various extensions and programs enacted since the recession began. There are now four "tiers" of extra benefits that provide 34 to 53 weeks of benefits. There’s also a separate "extended benefits" program that provides another 13 to 20 weeks of benefits.

The original Emergency Unemployment Compensation extension was enacted in July 2008 and expanded in November 2008. Under this program, anyone who had exhausted their initial 26 weeks of benefits was able to get an extra 20 weeks of payments. Workers in all states are eligible for these so-called “Tier I” extended benefits.

The law also created a separate “tier" for workers in states where the unemployment rate was higher than 6 percent. That “Tier II” program provided up to another 13 weeks of benefits in those states.

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