Man loses unemployment benefits after dipping into 401k
Lori Obert written by: Anastasiya Bolton
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LONGMONT – After 32 years at IBM, in August of 2009, Bob Jackson was laid off and looking for a job.
“I never dreamed I’d have to have unemployment some day,” he said.
Jackson has been looking everywhere, including retail and home improvement stores, for more than a year. He hasn’t gotten anywhere.
“We’re lucky to get half way through the month before we’re completely out of money. It’s been rough,” Jackson said. “It’s a hard market right now to find a job, especially at my age.”
In November, Jackson filed for unemployment and received two checks.
As part of the rules for receiving benefits, every two weeks, Jackson had to call into what is called a CUBLine (The Colorado Unemployment Benefits Line.) The automated line goes through a series of questions unemployment benefit recipients answer. During one of the calls, Jackson was asked if he’d taken out a distribution from his 401k. He said he did, $10,000 to pay for his son’s college.
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“Under our unemployment insurance program we’re following state law, which is if you touch even $5 dollars for your 401k it will impact your benefits,” said Cher Haavind, spokeswoman for the Colorado Department of Labor and Employment. “It’s an employer-funded program, whether it’s severance, pension or distribution of 401k, all those things, any other money you have received from the employer will play into your benefit amount.”
Haavind added, “The program is there to meet one’s needs again when they’re transitioning from job to job. Perhaps the perception is if you have other resources available to you that you should look at those first before receiving unemployment insurance benefits.”
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Perhaps, the perception is that it’s “unemployment insurance”.
Gooferment, and its bureaucrats, really drive me off the deep end.
So it’s not insurance; it’s welfare.
It’s “employer funded”. Sure it is. If they put it in your paycheck, you could save for your own “unemployment”! Argh!
So the politicians justifiy messing with people’s lives and money on the basis that they are too stupid to manage their own money?
This is welfare for the lucky few and for the goofermetn bureaucrats who run the program.
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