Things to know about the bill to increase the unemployment benefit, the first installment.

The Legislature is considering bills — supported by Governor Chris Gregoire — to temporarily increase unemployment benefits by $45 per week from May 3 to Jan. 3, 2010. It would also bump the minimum benefit to $155 — from $129 — for good.

Those are the basics, but there are so many more details. And these are, at this point, proposals: The bills have passed the House and are headed to the Senate. With that in mind, here is a good Q&A about current claims. And here are a few things to note about the proposal:

- If you are already receiving unemployment benefits, your checks will automatically increase after May 3, provided that you have state benefits left. The state pays for the first 26 weeks of unemployment, followed by 33 weeks paid by the federal government — even though the checks keep coming from the same place. The federal rate paid is determined by the state rate you received.

So, if your first 26 weeks run out on May 2, you will not receive an increase in benefits on May 3, when the program starts — but you will continue to receive federal benefits. If your first 26 weeks run out on May 3, you will receive the increase when it switches to federal money (the next day, in this example).

At the other end of the calendar-, if you file for unemployment on Jan. 2, 2010, you will receive the $45 benefit for the duration of your claim. If you file two days later, you will not.

- If you are one of the 8.2 percent of people who receive the very lowest amount of benefits — $129 per week — you will get two bumps: An increase to $155 — the new, permanent minimum — plus the $45 bump that everyone gets. Anyone who now receives less than $155 will get the same treatment.

- The formula to determine the rate of unemployment caps the amount you receive at the smaller of: 1) 26 times your weekly benefit OR 2) 1/3 of your total wages for the base year. The $45 increase will not affect how quickly you reach the maximum. The minimum increase could.

To use an example from the ESD Web site (prepare for a lot of math): Let’s say your gross wages from the base year were $11,200 (or the average of the last two quarters was $2,800, if your wages vary). Then you lose your job through no fault of your own.

The formula says you’ll get $108 per week in benefits, but the minimum is $129 — and would increase to $155 plus a $45 May-Jan. bonus. That’s $200 total. The state will pay for 26 weeks, which would equal $4,030 (again, the $45 bonus doesn’t count in this calculation). A third of your base year earnings, however, equals $3,733. That means you’d hit the maximum after 24 weeks.

Note: In the above scenario, you’d be getting $200 per week in unemployment benefits. At your old job, you brought home $215 per week.

oneSo, at what point would one be “making more” in unemployment than employment? If the job you lost paid less than $10,399 per year, you could briefly take home more per week in unemployment benefits ($200) than you did while working ($199 at $10,399). In this case, you’d reach your max — 1/3 of your base income — after 20 weeks. Few people are in this category.

The bigger point: The less money you made, the more you’ll feel a boost — so long as you don’t run out of benefits. (But the more money you made, the less you’ll have to worry about hitting the maximum: If you lose your $60,000-a-year job, you won’t reach the maximum — because the maximum weekly payment is $541, and at that rate, you aren’t going to hit 30 percent — or $20,000 — in 26 weeks.)

- The proposal also includes an increase in “training benefits,” which amounts to getting paid to go back to school. The fine print: Training benefits are for those who have exhausted regular benefits. While you receive the first 59 weeks (26 paid by the state, 33 by the federal government) of benefits, you are required to look for a job full-time. After that, you are eligible for training money — if you are re-training for a high-demand career.

These are only part of the ins and outs of the proposed changes. I’ll post more as it arises, so check back.

Tags: unemployment