Benefits Practice 8

 

Unemployment Compensation

Contents

WHAT

Unemployment compensation benefits are available to employees who are terminated, satisfy eligibility requirements and are not otherwise disqualified from receiving such benefits under the laws of the state in which they last worked. These benefits are provided through a program established for federal employees, which is administered by the Employment Security Agency in each state.



WHO

All employees (excludes contractors)



WHY

TVA recognizes that employees who have been terminated through no fault of their own and are able and willing to work must have some form of compensation to maintain themselves during periods of unemployment.

TVA is required by law to provide unemployment benefits for its former employees through a federally mandated unemployment program.



HOW

ELIGIBILITY

To be eligible for unemployment compensation benefits, person must meet all of the following requirements:

  • Be unemployed through no fault of their own, able to work and available for suitable work.
  • File a claim and register for work at a local state employment office and continue to report to that office as directed.
  • Meet earning requirements as specified by state laws.


WHEN BENEFITS CAN BE DENIED

Unemployment benefits may be denied to any employee who:

  • Quits a job voluntarily without good cause connected to the work.
  • Has been discharged for job-related misconduct.
  • Has refused a suitable job without good cause.

TVA does not determine who is eligible for unemployment benefits; this determination is made by the state Employment Security Agency. However, TVA may contest the decision to award benefits when there is justification for doing so. Former employees who are determined to be ineligible for benefits may also appeal the state Employment Security Agency's decision.


APPLYING FOR UNEMPLOYMENT BENEFITS

All employees terminated by TVA who may be eligible for unemployment benefits receive a termination package that includes Standard Form 8. This form explains how to apply for the unemployment benefits available to former federal employees.


RECEIVING UNEMPLOYMENT BENEFITS

Former employees who are eligible for unemployment benefits will be paid weekly by their state Employment Security Agency. The amount of weekly benefits and the period for which benefits will be paid are generally determined by the laws of the state where the former employee last worked. In most states, former employees are asked to fill out forms detailing their job-search efforts on a regular basis, and unemployment benefit checks are mailed to the former employee's home.


HOW THE UNEMPLOYMENT COMPENSATION PROGRAM IS ADMINISTERED

The federal Department of Labor enters into agreements with individual states to administer unemployment compensation for eligible former federal employees. The way the Department of Labor administers the program depends on each state's unemployment compensation laws. TVA pays the entire cost of this unemployment compensation program by making direct, quarterly payments to the Department of Labor through an inter-agency transfer of funds.



ROLES

Employees Facing Termination

  • Must meet the eligibility requirements for unemployment compensation and not be otherwise disqualified under the laws of the state in which they last worked.
  • Must file claims for unemployment compensation with their state Employment Security Agency.


Disbursement Services

  • Serves as the contact between state Employment Security Agencies and TVA.
  • Handles all correspondence dealing with unemployment compensation and wage and termination information.

Human Resource Representatives

  • Provide employees with the appropriate forms to file for unemployment compensation.
  • Determine which claims for unemployment compensation should be contested.
  • Represent TVA or arrange for its representation at all unemployment compensation hearings.
  • Answer employees' questions about unemployment benefits.


Office of the General Counsel

  • Assists human resource representatives, when necessary, in preparing cases for hearings, but generally does not serve as *TVA's representative at the hearing.


Controller

  • Develops, maintains and interprets TVA accounting procedures concerning unemployment compensation.


Cash Management

  • Administers interagency transfers of funds to the Department of Labor.



RESOURCES

  • Human Resource Representatives
  • Payroll Officers
  • TVA Practices list
  • TVA Procedures list



REVISION HISTORY

November, 1998