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Not all pensions affect unemployment claims, but some do. If you are receiving a pension from an employer you worked for during your Base Year Period, your unemployment benefits may be reduced by either 50% or 100% of your weekly pension amount, as follows:

  • If your Base Year Period employer contributed the entire amount towards your pension and you contributed nothing, your unemployment benefits may be reduced by 100% of your weekly pension amount.

    For example, if your monthly pension amount is $1,000, your weekly pension amount is calculated to be $231.  If your unemployment weekly benefit amount is $400, your weekly pension amount, $231, is subtracted from that, leaving you with $169.

  • If both you and your employer contributed towards the pension, your unemployment benefits may be reduced by 50% of your weekly pension amount.

    For example, if your monthly pension amount is $1,000, your weekly pension amount is calculated to be $231.  Since you contributed towards your pension, only half of your weekly pension amount ($116) is subtracted from your weekly benefit amount.  If your unemployment weekly benefit amount is $400, half of your weekly pension amount, $116, is subtracted from that, leaving you with $284.

  • If you contributed the entire amount towards the pension, and your employer contributed nothing, no reduction will be made to your unemployment benefits.

  • If you were involuntarily separated from work prior to the age of 59.5 years, a lump sum payment of retirement pension will reduce your unemployment benefits, either for the week in which the payment was received or, at your option, prorated to a weekly deduction using actuarial tables.

Note:  The receipt of Social Security benefits does not reduce unemployment benefits.



 

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