FileUnemployment

How Retirement and Pension Affect Unemployment Benefits?

Updated : February 24th, 2020

Does pension affect unemployment benefits

With rising productivity at an advanced age, common concerns for older people facing job losses revolve around their pension and unemployment benefits. Senior citizens can avail UI benefits as there is no age limit to claiming them. This is as long as you have not withdrawn from the labor market, and you meet the other eligibility criteria.

Unemployment Insurance is a government initiative that is funded by collections from employers and not taxpayers. It helps workers financially while they are unemployed and looking actively for work. You can claim UI benefits while drawing social security benefits and pension payments, though it would be subject to deductions as per the pension plan.

When Can I Retire and Claim Unemployment Insurance?

As per the Social Security Administration of the US, the earliest retirement age is 65, for people who were born in 1937 or earlier. For each year after 1937 until 1943, the age increases successively by two months, culminating in 66 for those born between 1943-1954. From 1955, the age increases similarly by two months each successive year to 67 for those born in 1960 and later.

Thus, if you were born in 1957, you would retire at 66 years and six months.

Can I Collect Unemployment Benefits if I Retire Early?

If you have taken early retirement, unemployment benefits could be claimed by you. However, this only applies if you were laid off for no fault of your own and/or compelled to accept an early retirement package by your employer to reduce the workforce. 

You may also be able to claim UI benefits if you had to retire due to health and safety reasons, and your employer failed to provide you with suitable alternative work. The exact conditions vary from state to state, so refer to your state’s website for details.

Does Pension Affect Unemployment Benefits?

Pension refers to any periodic payment which may be employer-contributed, governmental, union, from sharing profits, annuity, etc. Most states such as Georgia, California, etc. reduce the unemployment compensation of those who receive pension payments. This is not to be confused with social security benefits, which are not affected by pension or UI benefits. If you live in Florida or Michigan you should check out how you can file for unemployment benefits. 

Typically the weekly benefit amount is reduced by the amount contributed by your base period employer towards your pension (if they contributed 50% or more). If you draw upon your retirement plans like a 401(k) that too is subject to deduction, based on those amounts, the weekly benefit amount payable to you could drop to zero, thus disqualifying you.

The other requirements you would have to satisfy to claim unemployment insurance include:

  • Meeting all the reporting requirements
  • Registering for work with the state portal and proving that you are actively looking for work
  • Drawing the threshold wage during your base period (which may vary across states)
  • Being unemployed through no fault of your own

Older workers who get laid off have a tougher time finding new jobs compared to younger workers. As the unemployment compensation is not considered as income under the social security earnings, it is an added advantage for senior citizens and retirees who can also draw social security benefits.

Applicants should remember to file their claims as quickly as they can, regardless of whether they have been served the unemployment notice by their employer.

Related Tags : , , ,

Did you find this article helpful?   YES | NO   image

  1. I work for a church pre school program and I have lost my job due to coronavirus. When I applied for unemployment in Texas it says that two does not except this employer as my last employer. I’ve been working there for 13 years. What do I do?

  2. Chad ….. how do I get thru when it wont accept my ID or my password. I change it 5 times and it still wont work. Calling is not working at any time when I spend and whole day calling back to back to get thru. why don’t they just help or force the employers ( company) to place they claims in for their workers like GM did……I NEED HELP…PLEASE.

    1. Chad,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

  3. i live in ga…all the day cares have shut down my wife and i have full time jobs,,,but i have to leave my company which i have been there for over two years,to take care of our child….can i still collect unemployment…this covid virus is why i have to leave my job…

    1. Gary,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

  4. are you kidding me my son lost his job on 10/17/2020 hes mentally challenged and cant file on his own because he doesn’t know how so I started going to sites trying to file for him and the residence inn Marriott promised to help him and have done zip . ive tried 10 different sites and I keep getting dropped wen I complete forms and push submit. 12 days now n still cant file a claim.

    1. Martin,

      There’s only one website you should be trying from. Please let us know your state and we’ll share the website information.

  5. I have submitted my forms EXACTLY as I was instructed too on line. Even though I have filled out the paperwork correctly I keep getting emails asking for me to fill out the form that I have done multiple times already. Remuneration – Claimant Questionnaire is the issue. I got online and requested a phone call. 3 days ago. I just need to know that you guys received everything and I don’t owe any more information.
    Nobody answers the 617-626-6800 number. Just get directed to the internet. Well, you can’t speak with the internet. I am getting mixed messages and I fret that this will delay any benefits.
    Could someone please give me a call.

    1. James,

      Please try finding answers online since there might be limited phone support due to the shortage of staffing. This is a private forum and we’ll not be able to arrange a callback.

  6. I work for a church that has grown it’s congregation over almost 40 years and we now have 26 mostly full time employees, most being here many years. Will our employees be able to file and receive benefits since we are an EXEMPT from paying unemployment industry? State of Florida

  7. My unemployment benefits ran out 3/1/2020 am I able to file for extended benefits ? I live in California and am 62 years old.

    1. Ariana,

      We understand this might be a difficult time for you. We’re anticipating a shortage of staff across unemployment offices due to the massive surge in UI applications considering the pandemic. We advise against calling or visiting the office, as you may not get a response instantly.

      Your state may have activated “Extended Benefits (EB)” authorized by the federal government. We recommend you apply for UI benefits online. For more information, please visit your state’s official Unemployment website.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please answer a simple Math question: *

https://fileunemployment.org