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Congressional Research Service
informing the legislative debate since 1914
February 7, 2025
Unemployment Compensation for Former Federal Employees
and Military Servicemembers
Background
Unemployment Insurance (UI) is a joint federal-state
system that provides income support through weekly
benefit payments. The UI system's two main objectives are
to provide temporary and partial wage replacement to
involuntarily unemployed workers and to stabilize the
economy during recessions (i.e., by providing income
support to unemployed workers, who spend this income,
maintaining a certain level of economic activity).
The Unemployment Compensation (UC) program provides
unemployment benefits to eligible individuals who become
involuntarily unemployed for economic reasons and meet
state-established eligibility rules. This In Focus provides
information specifically about UC benefits for former
federal employees (Unemployment Compensation for
Federal Employees [UCFE]) and former military
servicemembers (Unemployment Compensation for Ex-
Servicemembers [UCX]), which are authorized under
federal law to provide income replacement similar to UC to
these particular populations. Below is a brief discussion of
the UC, UCFE, and UCX programs and benefit eligibility.
This In Focus also provides summary information on
selected policy considerations related to UCFE and UCX.
Unemployment Compensation
The Social Security Act of 1935 (P.L. 74-271) authorizes
the joint federal-state UC program to provide
unemployment benefits. The UC program provides income
support through weekly UC benefit payments. Federal laws
and regulations provide broad guidelines on UC benefit
coverage, eligibility, and benefit determination, but the
specifics are determined by the 50 states, the District of
Columbia, Puerto Rico, and the U.S. Virgin Islands. Most
states provide up to a maximum of 26 weeks of UC
benefits. The U.S. Department of Labor (DOL) provides
oversight of state UC programs and state administration of
all UI benefits. DOL provides contact information for each
state UC agency.
The UC program generally provides benefits to both
eligible individuals who are on temporary layoff (furlough)
as well as those who experience a permanent job loss.
Among other requirements, to receive UC benefits
claimants must be able, available, and actively searching for
work. UC claimants generally may not refuse suitable work,
as defined under state laws, in order to maintain their UC
eligibility.
UC for Former Federal Employees
A federal employee who is furloughed or laid off may be
eligible for UCFE (U.S.C. §§8501-8509). States are
required to operate the UCFE program under the same
terms and conditions that apply to regular state UC. UCFE
eligibility, like regular UC eligibility, is determined under
the laws of the state in which an individual's official
workplace is located. Thus, two former federal employees
with the same earnings and work history may qualify for
different amounts of benefits if they file for UCFE based on
employment in different states. Employees in a
probationary period who are separated from federal service
may be eligible for UCFE and/or UC if their earnings
history meets the state's minimum earnings requirements
and other state eligibility requirements.
UC for Former Mltary Servicemembers
Individuals who served on active duty in the U.S. Armed
Forces or the Commissioned Corps of the National Oceanic
and Atmospheric Administration (NOAA) may be eligible
for unemployment benefits through the UCX program (5
U.S.C. §§8521-8525) after they voluntarily separate from
service. The Emergency Unemployment Compensation Act
of 1991 (P.L. 102-164) provides that ex-servicemembers be
treated the same as other unemployed workers with respect
to benefit levels, waiting periods for benefits, and benefit
durations. If a former servicemember was serving in the
active component, in order to be eligible for UCX he or she
must have left military service under honorable conditions
and either have completed a full term of service or have
been released early under a qualifying reason. If the former
servicemember was a reservist, he or she must have been on
active duty (or Space Force active status) for at least 180
continuous days.
Unlike the regular UC program, the state laws that
determine the UCX benefit are based on where the
applicant is physically present when filing the claim (rather
than the last duty station). Therefore, UCX applicants
would contact the state where they are physically located
when filing for UCX benefits. UC eligibility criteria and
benefits vary by state. Former servicemembers must meet
the same criteria that civilian workers are required to meet
for their UC benefit eligibility. Thus, two former
servicemembers with the same earnings and work history
may qualify for different amounts of benefits if they file for
UCX in different states. The equivalent military
measurement of wages and time in service are used to
determine eligibility and benefit levels.
Policy Consideratons
Congress may be interested in several policy issues related
to UCFE and UCX benefits, including Extended Benefits
(EB), financing, combined claims, the effect of any
retirement payments, the availability of these
unemployment benefits for affected employees during a
government shutdown, and UCX and the role of training.](ViewImageLocal?handle=hein.crs/goveskc0001&div=1&collection=&method=preview&ext=.png&size=3)
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