Supplemental Unemployment Compensation Benefits

melissaj · October 2010

I was wondering if anyone had experience working with SUB pay plans? The recent ruling on February 23, 2010 (United States v. Quality Stores) has opened up a dialogue with my employer as to the qualifications of SUB pay. I believe that our "severance" payment plan does not qualify as SUB pay even if Revenue Ruling 90-72 is rejected. Does anyone have specifics on what qualifies as a SUB plan? Additionally, do individuals who were involuntarily terminated qualify for the plan?

Thank you!

Patrick Haggerty · October 2010

There were several conversations on this board where this was mentioned - The last one is at this location:

I'll post the other three in another response - they won't all fit here - those are mainly David Warren bringing up the possibility in posts about severance pay -

Patrick Haggerty · October 2010

Other discussions. There might be something more in these than was in the first link, but I did not see anything with a quick scan of the threads.

Patrick Haggerty · October 2010

Now, beyond that, my experience with SUB pay is with General Motors and the UAW - the UAW negotiated a benefit for its members and GM either paid into a plan administered by the Union or was to pay laid off workers an amount that was not wages but was to supplement unemployment benefits paid by the state. It was also not severance pay because the workers might be on temporary layoff rather than terminated. I suspect further that the benefits ceased when the employee became comparably employed.

That is, as I recall, the payments were intended to supplement unemployment benefits while the worker was receiving unemployment benefits.

Supplemental Unemployment Compensation Benefits

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