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Judges: early retirement ends unemployment benefits

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The Indiana Court of Appeals affirmed the termination of unemployment benefits for an auto worker who accepted an early retirement package after she was laid off.

S.A. worked at Daimler Chrysler from 1999 until February 2008 when she was laid off. Chrysler still paid her some wages and she also received unemployment benefits. S.A. eventually accepted an early retirement package and no longer was an employee in May 2009.

Shortly thereafter, her unemployment benefits were suspended because a claims deputy determined she voluntarily left Chrysler without good cause in connection with the work. An administrative law judge and the Board of Review of the Indiana Department of Workforce Development also concluded that S.A. was ineligible to continue receiving benefits.

In S.A. v. Review Board, No. 93A02-1004-EX-568, S.A. argued that the board erred in determining she left her job without good cause in connection to the work. She claimed she felt pressure to retire because her benefits were running out and she was told there was no chance of her getting back to work and she needed the insurance the retirement would offer.

She also argued that she had been receiving unemployment benefits for 15 months before she took the retirement package and she was already unemployed at the time and accepting the package didn’t change her status.

The appellate court affirmed the board’s decision, finding it properly cited Indiana Code Section 22-4-14-1(c). That section says it does not apply “to a person who elects to retire in connection with a layoff or plant closure and receive pension, retirement, or annuity payments.”

The judges found her case to be similar to York v. Review Board of the Indiana Employment Security Division, 425 N.E.2d 707, 711 (Ind. Ct. App. 1981), in which the appellate court held an employee who accepted an early retirement package left his job without good cause in connection with the work. York argued he was forced to retire and by taking the retirement agreement, he had merely mitigated his economic losses.

“Although York predates the addition of subsection (c), we agree with its reasoning; therefore, we affirm the Board’s decision,” wrote Judge Terry Crone.

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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