Can I Get Unemployment If I Accept Early Retirement in Washington?
When a worker chooses early retirement or receives strong encouragement from an employer to accept early retirement, the arrangement might require financial adjustment on the part of the worker. If the worker hasn't planned adequately for full retirement or wants to continue receiving income, additional financial support may become necessary. While Washington state sets aside unemployment compensation for eligible workers, individuals who choose early retirement should research their legal options under state law carefully. In some situations, early retirement might complicate a claim for unemployment benefits.
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Purpose of Unemployment Compensation in Washington State
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The Washington State Employment Security Department administers the state's unemployment compensation program. The department reviews the claim filed by each worker and decides whether to allow unemployment benefits. The state uses the ESD to give temporary financial support to workers who have lost their jobs. In general, the program requires that recipients actively apply for jobs while collecting employment. State law also requires that workers be available and physically able to accept new employment opportunities as they arise. An individual who takes early retirement without plans for future employment may have trouble meeting the department's requirements; however, each individual's personal circumstances may vary.
Review Process for Unemployment Claim
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When an individual applies for benefits through the ESD, state law requires information regarding the reason why the worker has become unemployed. According to the ESD, an applicant who becomes unemployed due to layoffs or lack of work might have a strong claim. An applicant who voluntarily leaves a job or is fired, however, must establish her eligibility for benefits with the ESD. An individual who voluntarily gives up a position or elects to take early retirement might need to show more about the circumstances around the decision to collect unemployment compensation in Washington state.
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Good Cause for Quitting a Job
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If an individual volunteers to leave a job, he has the burden of proof to show "good cause" for the decision. State law includes a list of circumstances that may qualify as good cause. For example, if the worker's employer reduced his hours or pay by at least 25 percent, the worker may be able to show good cause for the decision to quit and take early retirement. Other reasons include illness of the worker or an immediate family member and relocation due to a spouse or domestic partner's new job.
Retirement Benefits and Unemployment Compensation
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If the worker's early retirement incentives include separation-incentive payments, the worker generally must report those incentives to the ESD when applying for or collecting benefits. Severance pay as part of early retirement likely doesn't affect an individual's eligibility for unemployment compensation. Continuation pay with full benefits, however, might affect the worker's eligibility. When early retirement includes ongoing payments or other compensation from an employer, the retiree might need to seek guidance from the ESD or a Washington lawyer who practices labor and employment law.
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References
- Lawyers.com: Employment Law in Washington State
- Washington State Employment Security Department: Are You Eligible to Claim Unemployment Benefits?
- Washington State Office of Administrative Hearings: Unemployment
- Washington State Employment Security Department: Frequently Asked Questions About Unemployment Benefits
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