Gov. Patrick targets unemployment insurance loopholes

The governor Wednesday proposed changes in unemployment insurance laws to close loopholes that have allowed some public employees — including teachers on summer break, municipal retirees who return to work and some call firefighters — to qualify for unemployment compensation.

Gov. Deval L. Patrick said a review begun last year over reports of a Lynn police officer on a pension returning to work and then getting unemployment benefits, and other reports of people abusing what he called “loopholes” in the law, led to the recommendations.

“The legislation would eliminate the eligibility for unemployment benefits for municipal school employees who expect to return to their jobs after summer break,” the governor said, detailing the intent of the legislation. It would also limit a municipal retiree’s ability to collect unemployment benefits while also collecting a pension, he said.

“The bill would prevent municipalities for being responsible for unemployment insurance benefits for election workers that make less than $1,000 a year,” the governor said. In addition, the legislation would authorize the Department of Unemployment Assistance to intercept federal tax refunds to recoup improperly paid unemployment benefits.

State Labor and Workforce Development Secretary Joanne F. Goldstein, who led a task force assigned to the loophole problems, said the changes would not impact private-sector employees, who in some cases can receive unemployment benefits while earning a pension. She commended representatives of municipalities who worked on the recommendations.

“A problem was raised. The state recognized it and created a forum to address it,” she said.

“We have addressed unemployment insurance issues within municipal school departments for public employee retirees, seasonal workers and on-call firefighters and several small categories of police,” Ms. Goldstein said.

She said the practices targeted by the task force were viewed as abusive and have been allowed under state law.