Tier 5 Unemployment Extension Simplified

Unemployment benefits can be difficult to understand in the beginning and the tier 5 unemployment extension is no different. To be able to seriously understand what this sort of unemployment extension could mean for many people we will have to take a glance at a few of the fundamentals with regards to unemployment insurance.

Unemployment benefits typically differ slightly depending on which state you live in. However, normal unemployment insurance offers as much as 26 weeks of coverage for employees who have lost their work through no wrong doing of their own. For example, those who have been laid off by the company because of budget cuts.

The current unemployment extension offers additional financial help for those who have depleted their unemployment. The way it operates currently is that there are four tiers which are eligble for an extension, based on how long you have been accepting your benefits. The first tier extends for 20 weeks, the second tier goes for 14 weeks, and so on and so on (realize that these figures may vary from state to state).

When we discuss the tier 5 unemployment extension, then, it means extending unemployment benefits to those who have already used up their insurance and now have no alternatives for any kind of compensation. These people are commonly known as the “99’ers” and have been long term unemployed (the term “99’ers” originates from the fact that in many states 99 weeks of benefits is the maximum length you can be compensated for). At the time of this writing it is estimated that somewhere in the ball park of 3 million people fit this bill and are in need of further assistance.

At present tier 5 unemployment doesn't exist and the bill that would make it come to pass is in limbo. Backed by the democrats, the Americans Want to Work Act could create legislation allowing for a fifth tier of unemployment benefits for those who qualify. Nevertheless, the bill is projected to cost 33 billion dollars and is receiving virtually no support from the GOP, which makes it tough to say when and if a tier 5 unemployment extension will ever be available.

If you are a 99’er and in need of further unemployment compensation, you are encouraged to contact your state Representative and share your story. The tier 5 extension will not pass without more support and the best way to make that happen is to make your voice heard.