Issue Date: March 8, 2009
MoneySmart |
SHARON EPPERSON |
|
How to survive a job loss
If you're laid off, act fast to secure benefits and establish new networks.
|
Nearly 3 million jobs were lost in 2008, and heavy cuts are forecasted at least through June. Severance isn't a sure bet, and unemployment benefits may not go far, so if you're laid off, act fast and take these steps:
Before leaving your employer, nail down benefits, unused vacation and/or personal days, and retirement savings options.
File for unemployment benefits immediately. This fall, emergency unemployment compensation was extended from 13 weeks to 20 weeks (or 33 weeks in states with unemployment of more than 6%). Find the link to your state's unemployment insurance program at servicelocator.org/OWSLinks.asp.
Secure health coverage. Find out, under the new stimulus plan, if you can continue benefits under COBRA or if you are eligible for Medicaid. Check your spouse's plan, too: A job loss may qualify you to join the plan outside the annual enrollment period. Also, price an individual insurance policy.
Review retirement accounts. Make sure your employer rolls the 401(k) balance over to an IRA account, or if you get a job right away, to your new employer. The date that any pension will be available and distribution options depend on provisions in your plan documents, so talk to the plan's administrator.
Launch a job search. But try to find a part-time job while you do. Network through alumni and professional groups and the Web (Facebook, LinkedIn). The last two put you in touch with more people than you could meet on your own and allow you to brand yourself to potential employers.
CNBC correspondent Sharon Epperson is the author of "The Big Payoff."
Want to know more about rollover of a 401k? Click here.
|
