Federal law provides for a program of unemployment compensation for unemployed former Federal civilian employees. The Unemployment Compensation for Federal Employees (UCFE ) program provides a weekly income for a limited period of time to unemployed former Federal civilian workers who meet eligibility requirements, to help them meet basic needs while searching for employment.

The program is administrated by the individual states (and the District of Columbia) as agents of the Federal government. The states determine eligibility for unemployment compensation benefits under the same terms and conditions that apply to State Unemployment Insurance. The rules vary from state to state. In some jurisdictions, receipt of any annuity makes a separated employee ineligible for state benefits. In other states, they may be eligible for benefits if their separation was involuntary. Benefits are paid by the states from funds provided by the Federal Government. Your agency will normally pay the cost of a former employees' UCFE claims.

When an individual applies for unemployment compensation, the reason for the unemployment is very important in determining whether the compensation is payable. In order to safeguard its funds, each Federal agency is responsible for appealing determinations which it believes are erroneous. The Agency has contracted for the processing of claims for unemployment compensation. In addition, the contractor represents management at administrative hearings to appeal a state's determination that a former employee is eligible for unemployment compensation although their separation was voluntary or for cause. Management may be asked to attend such hearings and testify by providing first-hand knowledge of the nature of the employee's separation

For more information visit the UCFE web site at the Department of Labor.