Can I Collect New York State Unemployment if I Am Getting a Monthly Pension?
Pension plans have numerous benefits but one of the downsides is that it can have an adverse affect on your eligible unemployment plans. The New York State Department of Labor adjusts your unemployment benefits when it believes you’re earning income and certain types of pension plan payouts fall into this category. Depending on the type of pension plan, the NYSDOL will deduct all, half or none of your weekly pension amount from your payments.
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Pensions
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Pensions are funds you pay into through your salary that you then receive back after you’re past working age. It’s a retirement plan that many companies offer to their employees as an added benefit of employment. Pension plans are managed and distributed by your employer, who often contributes to it in addition to your own money from each paycheck.
No Contributions
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There are three types of pension categories by the NYSDOL. The first is the one where you don’t contribute any money at all to the pension fund and your employer pays the entire amount. While rare, this type of pension payout affects your weekly benefit amount the most. The NYSDOL reduces your weekly benefit amount by the amount of pension payment you receive per week.
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Less Than 50 Percent
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The next type of pension payment the NYSDOL considers when you’re collecting unemployment is one in which you contributed less than 50 percent of the money in the fund. These types of pension arrangements are far more common than the ones where you don’t contribute anything. In that case, the state deduct half of the weekly equivalent of your pension payout from each week of unemployment payments.
More Than 50 Percent
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Pensions where you contributed more than half of the money in the fund and your employer contributes less than half take the least effect on your unemployment benefits. As long as your salary was the main contribution to the pension plan, the NYSDOL won’t deduct any money from your weekly benefit amount.
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