McCain calls for new reforms throughout the Federal Government. It is one of his many priorities. Thus, it is not strange for him to want to reform the Unemployment Insurance (UI) System. In his economic plan, McCain proposes the following reforms to bolster job security and assist displayed workers in America:
John McCain Believes We Should Have A Single, Seamless Approach To Job Transition Assistance. The UI system must be more effective in helping those who have lost a job. John McCain will modernize and transform our current programs by consolidating redundant federal programs, strengthening community colleges and technical training and giving displaced workers more choices to find their way back to productive and prosperous lives.
John McCain Will Reform The UI System So That A Portion Of Each Worker’s Unemployment Insurance Tax Is Deposited Into A Lost Earnings Buffer Account (LEB). If an individual becomes unemployed, the LEB may be used to cover needed expenses, with a backstop of traditional UI if the account is exhausted before 26 weeks. Workers will have an incentive to preserve their LEB by getting back to work quickly, and may be eligible for a re-employment bonus if they get a new job quickly. The LEB will be portable, and upon retirement, the property of the worker.
John McCain Will Reform Training Programs To Provide Quick Assistance To Workers Seeking New Skills. Workers will have access to a flexible training account that permits them to pay for training at a community college and use leftover funds to keep their health insurance.
John McCain Will Provide Special, Targeted Assistance For Older Workers. Because training is often inefficient for older workers, those 55 years of age and older who have built up an LEB will be eligible for a Lost Earnings Supplement. The supplement of up to 50 percent of their earnings loss (up to a maximum of $10,000) for two years will be rewarded for those who find work inside 26 weeks.
These reforms seem very ground breaking. However, the only part that might not fit very well with people is the latter. People, 55 and older, should not be looking for jobs or taking on new trainings at that stage in their lives. They should be thinking about their retirements and the government should be helping them accomplish just that.
Read McCain’s full economic plan here.
