One thought on “How Do Supplemental Unemployment Benefits Plans Work?

  1. Arti says:

    Under a SUB plan, in the event of a Reduction in Force (RIF) or temporary unemployment due to training, illness or injury, laid-off employees maintain their previous salary, with their former employer supplementing their states’ unemployment benefits. The standard plan is entirely employer funded, with individual funds for each worker. Employee-funded SUB plans are alternative, contributions being shared into a collective fund for all employees. SUBs were often fought for in collective bargaining agreements. They’re growing in popularity again across industries. SUBs got popular in the ‘50s as a way to help workers in industries with cyclical employment patterns get a more steady income. SUB plans can be funded entirely by an employer or by employees, or by a few mix. These replace normal severance payments.

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