Older Workers Need Legislative Fix
By: Source: AARP.org Date Posted: 2007-04-10 12:13:14.050125-04:00
Many older Minnesotans remain in the workforce long past the traditional retirement age. That's because reductions in pension and retiree health care benefits and drastic increases in health care costs have made continued employment a necessity for many.
Each year in Minnesota, about 4,000 older workers get a rude awakening when they file for unemployment insurance benefits. Although these workers have contributed to Social Security during their entire working years, and are seemingly eligible for unemployment insurance benefits like their fellow workers, they soon find out that Minnesota's law prevents them from collecting much-needed unemployment compensation—at a time when they are already financially strained.
That's because Minnesota is one of only eight states that subtracts $1 of unemployment benefits for every $2 that a worker receives in Social Security.
Minnesota's law dates from a time when it was believed that workers over the age of 65 only worked primarily because they didn't want to retire. The reality of employment for older workers is very different today. Employment is an economic necessity for many who have reached traditional retirement age.
Around the state, Minnesotans have found themselves caught in the offset, creating a financial burden on these older workers and their families. AARP is urging passage of legislation to fix this problem. House File 2310 would remedy this situation, and the State Senate will hopefully act soon on this issue as well.
As AARP urges legislators to repeal Minnesota's Unemployment Insurance Social Security Offset, tell us your story. Have you been affected? Send us an email.
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