Wealth Management

What do Prisoners & Millionaires Have in Common?

First, a warm up question: Who takes longer to find work after filing for unemployment compensation, Millionaires or Prisoners? This is actually a trick question because prisoners don’t qualify for unemployment.  Prisoners, by being incarcerated, fail to meet the standard of “ready for work” or “actively looking for work.” Yet, unemployment has been paid to prisoners, sparking a nation-wide crackdown on such fraudulent payments.  Millionaires are another story.  Hey, who isn’t ready or actively looking to be hired as a Millionaire?   How many Millionaires “qualified” for unemployment benefits when the financial markets hit the skids during the recent Great Recession?  Even in the face of separation packages in the millions of dollars, many institutions paid out unemployment benefits to very high wage earners.  Despite the clamor over the unemployment  insurance expenses for these two groups, the slowest legal group of claimants to return to work, and the receivers of the largest proportion of overpayments in the unemployment system constitute a third group; the Average Claimants whose household made under $50,000 per year. The majority of unemployment insurance payments – around 70 percent — go to these households, a figure recently reported by Bloomberg. Here’s a math test: If in any given year there happen to be 1,000,000 Average Claimants  (households earning under $50k) who happen to misfile beneficially and are consequently overpaid by $1,000 each, then how much systemic overpayment is that? That’s right. One billion dollars. Indeed, Department of Labor Statistics estimates that in 2012 overpayments nationally topped $4.8 billion. The waste basket was already full.

By |Blog|Comments Off on What do Prisoners & Millionaires Have in Common?

Marsh & McLennan Agency

Marsh & McLennan Agency is the leading insurance adviser for innovative solutions that empower businesses and individuals to succeed. The strength of our solutions lies in the quality of our team. Our 360° approach means we look at your company holistically, and create a custom plan that aligns with your business strategies, core values and culture. We believe collaboration and teamwork are the key to success and enjoy working with our clients to build personal and professional security.

 

Contact Information:
Marsh and McLennan Agency

500 Boylston Street, Suite 300
Boston, MA 02116
617-587-2300
 http://www.mma-newengland.com/

logo

By |Employer Resources|Comments Off on Marsh & McLennan Agency