LOWER APPEALS DECISION
|DECISION DATE: 12/24/90
|CLAIMANT:Alan W. Puff Puffenberger
||APPEAL NO.: 9015701
|EMPLOYER: Hobby House Press, Inc.
||L. O. NO.: 003
Issue: Whether the claimant is receiving or has received a governmental
or other pension, retirement or retired pay, annuity or
other similar periodic payment which is based on any previous work of such individual, which is
equal to or in excess of his/her weekly benefit amount, within
the meaning of section 6(g) of the law.
- NOTICE OF RIGHT TO PETITION FOR REVIEW -
ANY INTERESTED PARTY TO THIS DECISION MAY REQUEST A FURTHER
APPEAL AND SUCH APPEAL MAY BE FILED IN ANY OFFICE OF THE
DEPARTMENT OF ECONOMIC AND EMPLOYMENT DEVELOPMENT, OR
WITH THE APPEALS DIVISION, ROOM 515, 1100 NORTH EUTAW
STREET, BALTIMORE. MARYLAND 21201, EITHER IN PERSON OR
THE PERIOD FOR FILING A FURTHER APPEAL EXPIRES AT MIDNIGHT
ON January 8, 1991.
|For the Claimant:
Alan W. Puffenberger - Present
|For the Employer:
Gary Ruddell, President and Jim Cook, General Manager
FINDINGS OF FACT
The claimant filed an original claim for unemployment insurance
benefits at Cumberland, effective October 21, 1990.
The claimant was discharged for a non-disqualifying reason
pursuant to the provisions of Section 6(c) of the Maryland
Unemployment Insurance Law. Concurrently, the Claims Examiner
determined that the claimant is entitled to the receipt
of a lump sum pension, based upon information presented
by the employer. As a result, the claimant was disqualified
from October 14, 1990 to August 17, 1991.
The claimant was employed by Hobby House Press, Inc. from
December 1979 until October 17, 1990 as Director of Operations
at a hi-weekly pay rate of $1,423.00.
At the time of separation from employment, the claimant became
eligible for two pensions. The first is designated as
Hobby House Press Segregated Trust and the second is designated
Hobby House Press Trust Plan. Each of these plans was
paid for in whole by the employer.
The claimant has a one hundred percent vested interest in
the segregated trust in the current amount of $16,643.25.
He also has an eight percent vested interest in the trust
plan with a current amount of $14,163.26.
Although the claimant is vested in these amounts, the employer
is required to wait until after December 31, 1990 to compute
the accumulated interest to which the claimant is otherwise
entitled. Disbursement of these monies will occur on or
after February 1, 1991.
The claimant contends that he should be allowed unemployment
insurance benefits pending receipt of these monies.
CONCLUSIONS OF LAW
Section 6(g)(1)(i) and 6(g)(3)(ii) of the Maryland Unemployment
Insurance Law sets forth the basis and criteria for determining
eligibility of an individual who is entitled to the receipt
of a pension from the base period employer.
The Statute provides disqualification where; "the entire amount
which an individual received or will receive with respect
to a week in the form of a retirement payment from the
base period employing unit for which he performs services
and which pays all of the cost of such retirement payment,
or from a trust, annuity, profit sharing plan or insurance
fund, or under annuity or insurance contract, to or under
which a base period employing unit for which her performs
services pays or has paid all the premiums or contributions.
. . ." Section 6(g)(3)(ii) provides as follows: "a lump
sum payment of a pension, annuity or retirement or retired
pay, or from a trust, profit sharing plan, or insurance
fund, or under an annuity or insurance contract shall
be allocated to insure a number of weeks following the
date of separation according to the number of weeks of
pay received at the individuals last pay rate."
Accordingly, pursuant to the requirements of the unemployment insurance
law, the claimant is not eligible for the receipt of benefits
with respect to the entire amount of the lump sum pension
payment which he "will receive with respect to a week"
and said amount must be allocated to a number of weeks
following the date of separation according to the number
of weeks of pay received at the individuals last pay rate.
Since the Statute is clear that there must be a disqualification
or a reduction from benefits to which the individual is
otherwise entitled for a pension payment which he will
receive with respect to a week must be allocated from
the date of separation, the claimant is not eligible for
benefits until the number of weeks required by the Statute has elapsed.
The method of determining the number of weeks should be as follows:
The claimant's gross hi-weekly pay rate shall be multiplied
by 26 and then divided by 52 to establish his weekly pay
rate. That amount shall then be divided into the sum of
the two lump sum pension amounts for which he is presently
eligible, subject to assessment for accrued interest which
will be calculated later.
The claimant will receive a lump sum pension payment which
is disqualifying pursuant to the provisions of Section
6(g)(l)(i) and 6(g)(3)(ii) of the Maryland unemployment
Insurance Law. Benefits are denied from October 18, 1990
and for a number of weeks thereafter in accordance with
the formula set forth above pursuant to the number of
weeks of pay received at the individuals last pay rate,
which shall be computed by the Claims Examiner or roughly 40.7 weeks.
Robin L. Brodinsky,
Date of Hearing: December 13, 1990
km/Specialist ID: 03252
Cassette No: 10166
Copies, mailed on December 24, 1990 to:
Unemployment Insurance - Cumberland (MABS)