Score one for Rhode Island seniors.

That legislation to change the way the state’s unemployment system works is now law.

As a result, the state will no longer count your Social Security benefits against you when calculating how much unemployment compensation you should receive.

In other words, you’ll get the full amount of unemployment benefits to which you’re entitled; your benefits won’t be reduced based on how much in Social Security you’re collecting.

Many MoneyLine readers have been watching this issue closely in recent months, especially those who keep working while collecting Social Security benefits:

Q: I am calling about the [article] about seniors that are working and not able to collect [unemployment] from the state. I hope you keep on top of it . . . to get this nonsense corrected, because it hurts many people and [it’s] been going on way too long . . . .

— E.S., Cranston

A: Well, it’s over now. And although the General Assembly and Governor Carcieri locked horns over the state budget, they saw eye to eye on this one.

There was one bill in the Senate (S 0161), sponsored chiefly by state Sen. Frank A. Ciccone III, D-Providence, and an identical bill in the House (H 5296), sponsored mainly by state Rep. Thomas Slater, D-Providence.

The General Assembly recently approved both bills overwhelmingly, then sent them to the Governor Carcieri for his consideration.

On Friday evening, amid the General Assembly’s marathon meeting, Governor Carcieri signed both measures into law, his spokesman, Jeff Neal, said yesterday.

Both measures, which took effect upon passage, forbid the state Department of Labor and Training to count your Social Security benefits when calculating the amount of your unemployment compensation.

The new law mainly affects seniors who collect Social Security but continue working to supplement their income.

A number of seniors came forward to testify in favor of the legislation.

There was Angela Hogan, 80, who was laid off about a year ago from her job as an office clerk in Providence. When she applied for unemployment benefits, she qualified for $186 a week. But because of the Social Security offset, she wound up receiving $16 a week instead, she testified.

There was Constance Alger, 69, of North Kingstown, who was laid off from her job as a tour guide in Newport. When she applied for unemployment benefits, she qualified for $129 a week, but ended up receiving just $6 a week instead, because of the Social Security offset, she said.

And there was Anne Callan, 71, of Barrington, who retired in 1998, but was forced back to work, in a part-time job, to help pay for local property taxes. When she was laid off from her job as a tour guide, her unemployment benefits were cut, too, simply because she was also receiving Social Security benefits.

So now it’s over. There’ll no longer be a Social Security offset. That’s especially good news for seniors who return to the work force to help pay for health insurance premiums, property taxes and other expenses.

If they lose their jobs, they won’t be penalized just because they’re drawing Social Security benefits, too.

Ciccone put it this way: “Individuals receiving Social Security have earned it from years of work. They are entitled to it and should not be penalized for it. They deserve to receive full unemployment benefits while they look for another job.”

And it’s not just seniors who are affected. The new law will also help younger people when they reach retirement age, Slater pointed out. “Sooner or later, we’re all going to be up there in age,” he said.

In a statement issued late yesterday through his spokesman, Governor Carcieri said, “This legislation will encourage Rhode Island seniors to remain in the work force [for] as long as they can continue making a positive contribution to the economy.” Carcieri added, “We should be promoting work, not discouraging it.”

So thank your legislators, and the governor, too. And don’t forget to credit the AARP, a membership organization for people 50 and older, which had also worked to get the law fixed.

At long last, the campaign is over. Take some time to celebrate. You deserve it.

Neil Downing is a Journal staff writer and author of The New IRAs and How to Make Them Work for You. Questions about your money matters? Call us at 1-401-277-7484 and leave a message, or e-mail:

moneyline@projo.com

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