State Unemployment Inquiries

[jharcombe]

Has anyone had a state unemployment agency ask whether a past employee has taken a distribution? Are we required to disclose? 

[Bri]

What part of "we" are you?  The TPA, the sponsor, etc.?

[jharcombe]

@Bri The Sponsor/Employer. 

[EPCRSGuru]

On a related topic, a former employee who worked for us for 10 months from 1993 to 1994 needed a letter from me (a sponsor in the non-profit world) saying that he is not now and has never been eligible for a pension or a lump sum.  The ex-employee said under the "Windfall Elimination Provision" the SSA cut his Social Security in half (with no proof of anything), and he needed verification from me that his 10 months of service did not entitle him to a benefit.  Is this legit?  It sounds really weird and I thought I had seen it all. 

[Nate S]

On 9/21/2022 at 3:01 PM, jharcombe said:

Has anyone had a state unemployment agency ask whether a past employee has taken a distribution? Are we required to disclose? 

Only to the extent that your Plan is providing an ongoing income stream.  Lump sum distributions should not be considered.

[Luke Bailey]

3 hours ago, EPCRSGuru said:

under the "Windfall Elimination Provision"

This applies only to a governmental employer that doesn't have a 218 agreement with SSA to pay and withhold FICA. Should not have applied to employment by a Tax Exempt. 

[EPCRSGuru]

Thank you Mr. Bailey, sir!