In this proposed plan, a state would not carry the liability or administrative responsibility in the case of employees laid off work, whatever the cause. Unemployment coverage would be determined by annual wages and/or the amount the employee wants/needs, equivalent to personal income and expense. The plan would apply to self-employed through multi-national; local, state and federal.
An employee earning $30K annually could opt for coverage of $30-36K or of greater value according to household income needs and affordability of coverage purchased. If laid off the employee would have income equal to prior salary meeting maintenance needs with continued deductions while pursuing other employment. Thus the unemployed program member would continue contributions through the original employer (laid off) or central office (plant closure) and transition to new employer without termination of vestment in program. Extended unemployment beyond the program/period of unemployment could realistically be partially covered by a reserve fund, based on % of savings accrued from public to private administration. Modifications, exclusions, changes per federal, state, local participation or requirements can be addressed as necessary, by oversight or operating units in conjunction with implementation.
In-state vendors, operational or capitalized start-ups, bonded and secured, would have preferential status in account acquisition. Thus, new expanded employment is an incentive for consideration. Governmental involvement would be reduced to non-partisan/independent oversight and assurance of liquidity and integrity of program operations. Employment Security personnel, as qualified, could transition to human resource units within vendor and employer operations. Their focus would be toward training, skills development and interface with manufacturing, sales, product development, and et.al. subsequently acquiring valued marketable skills within industries dealing with technological change and skill requirements. Coordinated transition of State Employment activities to private industry could be directed by the aforementioned oversight entity as an Employment Security Commission would be redundant. Job availability would be presented by the employers, in-house, publicly and in conjunction with State Commerce or responsible entity. Economic Developers and Chambers of Commerce should be current as to jobs availability within their service areas and could function as initial contact/screeners for member businesses.
Should the 1-year plus employee need funds while experiencing financial hardship or necessary purchase for home or transportation, provision could be developed for short-term borrowing from the benefit fund. Amount based on percentage of benefits paid/value and time as contributor. Re-investment as proportionate to ability of employee to re-vest and continuation of employment. In the case of lay-off, repayment would be preset for deduction during the interim with deductions based on a 12 month period. Re-employment or new job would only require transition of the account if within the state of origin. If relocated to a state with similar program transition should be no problem. If no plan existed, the recipient could cash-out/rollover the vested funds into a personal investment/retirement fund.