EXCERPTS FROM ELM 16.1,
February 8, 2001
ELM 16.1, February 8, 2001 535
550 Unemployment Compensation
551 Overview
551.1 Legal Guidelines
551.11 Administration
The Unemployment Compensation for Federal Employees Program
(UCFE) is administered by the states under separate agreements with the
U.S. Secretary of Labor. Under these agreements, the states are agents
of the United States and take, adjust, pay, or deny claims for unemployment
compensation. Based on wage and separation information supplied by the
Postal Service, the state agency determines under its state employment
security law the postal employee’s entitlement to unemployment compensation.
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551.12 Liability
Benefit payments are made to former postal employees by the
states under the agreements between the states and the U.S. Department
of Labor. The Postal Service then reimburses the states through the Department
of Labor.
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551.13 Illegal Claims
Federal law provides criminal penalties for anyone who knowingly
makes a false statement or representation of a material fact, or knowingly
fails to disclose a material fact, to obtain or increase for self or for
any other individual unemployment compensation benefits for federal employees.
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551.2 Qualification
Factors
Requirements for unemployment compensation benefits vary from
state to state in accordance with each state’s employment security law.
However, each state law requires that a claimant:
a. Be unemployed or be employed less than full-time as defined by the
state employment security law with earnings less than an amount specified
in the state law.
b. Register for work and file an unemployment compensation claim at a
local state employment security office.
c. Have worked a specified amount of time or have earned a specified amount
of wages, or both, within a certain period.
d. Be able to work.
e. Be available for work.
f. Be actively seeking work.
g. Report periodically to the local state employment security office.
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551.3 Disqualification
Factors
Disqualification provisions vary from state to state. In the
majority of states,
employment security laws provide for a period of total disqualification
or for a
penalty period of temporary disqualification for certain types of separations.
A
former postal employee is not disqualified if the separation was an involuntary
termination of employment for other than misconduct, or if the separation
was a voluntary termination or resignation based on good cause.
The most common reasons for disqualification are:
a. The claimant was discharged for misconduct.
b. The claimant quit the job voluntarily without good cause.
c. The claimant refused a suitable job without good cause.
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551.4 Information to State Employment Security
Agencies
551.41 Information Required
The Postal Service furnishes state employment security agencies certain
salary and separation information concerning claimants who are or have
been employed by the Postal Service. This information is processed and
returned to the state agency by the Eagan Accounting Service Center (ASC)
within 4 workdays after receipt of the request. The information includes:
a. Periods of Postal Service employment.
b. Amount of remuneration for service.
c. Amount of lump sum terminal leave payments and periods of time for
which the lump sum payment was made.
d. Reason(s) for separation.
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551.42 Privacy Act Requirements
551.421 Authority to Disclose
Release of wage and separation information to a state employment security
agency can be made without written authorization from the former Postal
Service employee.
551.422 Accountability of Disclosure
To meet the Privacy Act disclosure accounting requirements, the state
coordinators described in 552.3 receive from the Eagan ASC copies of Unemployment
Compensation for Federal Employees Form ES 931, Request for Wage Separation
Information; Form ES 934, Request for Information or Reconsideration of
Federal Findings; Form ES 936, Request for Verification of UCFE Wage and
Separation Information Furnished on Form ES 931; and Postal Service Form
2342, Request: Unemployment Compensation Data, and Form 6803, Wage and
Separation Information (ES 931) (3-part continuous). These forms are to
be retained by the state coordinator for a period of 3 years. The Eagan
ASC maintains the Form 6803 Issue Report (Program No. PHE100) on microfiche
for a period of 5 years. State
coordinators are to maintain hearings and appeals case files for 5 years.
Official Postal Service records control schedules should be consulted
to determine retention requirements by state coordinators and installation
heads.
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552.4 Installation Heads
552.41 Completion of Form 50, Notification of Personnel Action Installation
heads:
a. Ensure the accurate and timely completion of Form 50 and SF 8, Notice
to Federal Employees About Unemployment Insurance, when initiating separation
actions (see 553.11 and 553.12).
b. Submit Form 50 as expeditiously as possible for processing.
552.42 Cooperation With Postal and State Authorities Installation heads:
a. Provide full cooperation to Postal Service state coordinators when
supplemental information is required.
b. Cooperate with Postal Service state coordinator requests for witnesses
to appear before state appeal hearings to testify about the reason(s)
a former employee was separated.
c. Give direct responses to state employment security agency requests
for
additional separation information (Form ES 934, Request for Information
or Reconsideration of Federal Findings) (see 553.22).
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552.5 Eagan Accounting Service Center
552.51 Initial Response
The Eagan ASC:
a. Completes Form 6803 (see 553.13) in response to state agency requests
for wage and separation information (Form ES 931) within 4 working days
after receipt of the request.
b. Retains a copy of each Form 6803 submitted to state agencies (Privacy
Act accounting requirements) on microfiche and distributes a copy of Form
6803 to the appropriate Postal Service state coordinator.
c. If separation or wage information is unavailable at the Eagan ASC,
forwards Form 6803 (and Form ES 931) to the appropriate Postal Service
state coordinator requesting that Form 6803 be completed and returned
to the state agency.
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552.52 Additional Information
The Eagan ASC responds to state agency requests for additional
information on Form ES 934 and verifies Form ES 931 on Form ES 936 within
4 working days after receipt (see 553.22 and 553.23).
553 Explanation of Forms and Procedures
553.1 Postal Service Procedures
553.11 Form 50
Personnel offices:
a. Complete Form 50 in an accurate and timely manner when separating an
employee.
b. Enter the three-digit unemployment compensation code that most accurately
describes what the Postal Service believes to be the reason(s) that the
employee was separated in the appropriate block on Form 50.
c. Ensure that all additional information relating to the reason(s) for
separation is incorporated into the remarks section of Form 50. (In those
instances when the employee’s reason(s) for separation differ from the
Postal Service’s reason(s), personnel offices enter the standard remarks
message (Standard Code 542) on Form 50.) This standard remark states that
a difference in separation reason(s) does
exist and will be furnished upon request.
d. State the fact of the issuance of SF 8 in the remarks section of Form
50.
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553.12 SF 8, Notice to Former
Employee About Unemployment Insurance
SF 8 explains an employee’s eligibility for unemployment compensation
and
describes the steps to be taken in filing a claim. Personnel offices complete
SF 8 by entering at top of form the employee’s name, Social Security number,
and pay location. In item 3 personnel offices enter #732 on the extreme
right
side and then enter the address of the Eagan ASC:
PAYROLL PROCESSING/UNEMPLOYMENT
USPS EAGAN ASC
2825 LONE OAK PKWY
EAGAN MN 55121-9635
SF 8 is issued promptly to the employee by the separating personnel office
so that he or she does not lose unemployment compensation benefits to
which he or she may be entitled. An individual whose work or tours of
duty are on an intermittent basis is issued an SF 8 only the first time
in each calendar year that he or she is placed in a nonpay status. However,
a completed SF 8 is issued to an employee each time the employee:
a. Separates from the Postal Service for any reason.
b. Transfers to another federal agency.
c. Is (or will be) placed in a nonpay status for 7 or more consecutive
calendar days.
SF 8 is issued on the employee’s last workday. The date is to be noted
in the
remarks section of Form 50.
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553.2 State Agency Forms and Procedures
553.21 Form ES 931
When a former Postal Service employee (or an employee who works less
than full-time as defined in the state employment security law with earnings
less than an amount specified in the state law) applies for unemployment
compensation at a state employment security office, the state agency sends
Form ES 931 to the Eagan ASC (see 553.13) as indicated on the claimant’s
SF 8.The Eagan ASC responds to the state agency by extracting the requested
wage and separation information from the automated ES 931 system on Form
6803 (see 553.13).
553.222 Request for Wage Information
The Eagan ASC completes the form and returns it directly to the state
agency
within 4 workdays after receipt. A copy of Form ES 934 is sent to the
respective Postal Service state coordinator by the stage agency. The Eagan
ASC retains a copy of the completed Form ES 934 for Privacy Act accounting
requirements.
553.223 Request for Separation Information
If the state agency sends Form ES 934 directly to the employee’s separating
installation, the installation completes the form and returns it to the
state agency within 4 workdays after receipt of the request. A copy of
Form ES 934 is sent to the appropriate Postal Service state coordinator
by the state agency. A copy of Form ES 934 is retained by the postal installation
and one is forwarded to the Eagan ASC for Privacy Act accounting requirements.
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554 Appeals
554.1 State Law Requirements
State employment security laws provide for (a) administrative appeals
at two
levels in state agency proceedings and (b) appeals to state courts. Appeals
may be initiated by the claimant or by the Postal Service. The state agency’s
notice of determination of a claimant’s benefit rights includes (a) the
determination and the basis for it and (b) information concerning appeal
rights and the time within which an appeal may be filed.
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554.2 Initial Level Appeals by Claimants
All claimants, including former probationary employees, have the right
to request additional information (see 553.22) for clarification of Postal
Service findings or to correct errors and omissions in their records.
If a claimant is not satisfied with a state agency’s determination, the
claimant has the right to appeal the determination. Notices of such appeals
received by postal managers are referred to their respective Postal Service
state coordinators (see 554.414).
554.3 Initial Level Appeals by the Postal Service
554.31 Cause to Appeal
If the Postal Service believes that a state agency’s determination
in awarding
unemployment compensation is incorrect, the Postal Service may appeal
the
determination under the applicable state employment security law.
554.32 Initiation of Appeal
The Postal Service state coordinator files an appeal whenever:
a. The state agency appears to have misinterpreted or disregarded the
Postal Service’s findings.
b. The Postal Service believes the determination is not in accordance
with the provisions of the state employment security law.
554.42 New Evidence by Claimant
In those appeal hearings in which a claimant introduces new evidence,
the
Postal Service representative either replies with Postal Service evidence
and
arguments or requests a continuation of the case in order to prepare a
response to the new evidence.
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554.43 Disclosure of Information
554.431 Routine
During a state unemployment compensation appeal hearing, the Postal
Service has the legal authority to disclose all relevant information from
any of the systems of records appearing in the list in Chapter 3 of the
Administrative Support Manual (ASM). All postal records presented as evidence
during state appeal hearings are excised of all irrelevant information
not pertaining to the claimant’s reason(s) for separation and for the
appeal or the Postal Service’s reason(s) for separation of the claimant
and for the appeal.
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554.432 Medical Records
Only medical information that directly relates to the reason(s) the
claimant was separated can be presented as evidence during a state appeal
hearing. However, in those instances in which the relevant information
contains a reference to a malignancy or mental condition, a medical officer
is contacted for the purpose of determining whether the claimant previously
has been made aware of its existence. If the claimant has not been made
aware of the condition, the information is not to be disclosed. If such
evidence is essential to the Postal Service case, a cautionary statement
is sent to the state referee prior to the hearing, indicating the importance
of such evidence and the possible psychological effect it may have on
the claimant if released during the hearing.
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554.5 Appeals (Second Level) to State Appellate
Board
Either the claimant or the Postal Service may appeal a determination
made by the initial level state appeal authority to the second level state
appellate authority, which is usually the State Appeals Board. The initial
level appeal determination indicates the basis for such a determination,
as well as the time frame in which an appeal can be filed. When a Postal
Service state coordinator receives an initial level appeal determination
that continues to contradict the Postal Service findings based on either
of the reasons outlined in 554.32, the Postal Service state coordinator
files an appeal based on such arguments. Participation by the Postal Service
in second level state appeals are conducted in the same manner as in the
initial level appeal process (see 554.4).
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