Call EDD
Back to California Unemployment

CosmicCruiser

Can you collect unemployment and retirement at the same time in California?

So I just got laid off from my job at a logistics company where I'd been working for 11 years. I'm 63 and I've been drawing a small monthly pension from a previous employer for about 4 years now. My current company gave me a severance package and I'm trying to figure out all my options while I look for new work. My main question is - can you collect unemployment and retirement at the same time in California? I filed my UI claim last week and it went through but now I'm second-guessing whether I was even supposed to do that. My neighbor told me you can't get both but my son said that's wrong. I called California EDD twice but couldn't get anyone on the phone. The automated system just loops me around. I really need to know if I have to report my pension income on my weekly claims or if that could affect my benefit amount. I don't want to accidentally commit fraud or get hit with an overpayment notice down the line.

Good news - in California you generally CAN collect both unemployment benefits and retirement/pension income at the same time, but there's an important catch. If your pension comes from a base period employer (meaning the employer you worked for during the 12-18 months before filing your UI claim), California EDD will reduce your weekly benefit amount by the pension amount, prorated if you contributed to it yourself. Since you said your pension is from a previous employer from years ago, and your current job was the one you just lost, your pension likely won't reduce your benefits at all. But you still need to report it honestly on your weekly certifications. The key question California EDD asks is whether the pension is from a base period employer - your claim rep will make that determination.

0 coins

Oh thank you, that's really helpful. So the pension from my old employer years back probably won't count against me? That's a relief. I'll definitely report it anyway just to be safe.

0 coins

this is correct, i went through the exact same situation. had a pension from a job i left 8 years before filing and EDD didn't touch my benefits at all. just make sure you report it every week without fail

0 coins

One thing to add - Social Security retirement benefits are handled a bit differently than pensions under California EDD rules. If you're drawing SS retirement benefits, those also need to be reported but they're treated under a separate offset calculation. Worth noting in case that becomes relevant for you down the road.

0 coins

Your neighbor is thinking of the old rules or maybe mixing up states. California doesn't have a blanket prohibition on collecting both. What DOES matter is the source and timing of the pension. The base period employer offset rule is the main thing to understand here.

0 coins

Yeah I think my neighbor might have been thinking of some other situation. Thanks for clearing that up.

0 coins

every state is different too so advice from people in other states doesn't really apply

0 coins

I was in almost the exact same boat last year - retired early but still working part time, then got laid off. Spent forever trying to get EDD on the phone to ask about my pension situation. Honestly the phone system is a nightmare. I ended up using a service called Claimyr (claimyr.com) to actually get through to an EDD agent. There's a video demo at https://youtu.be/JmuwXR7HA10 that shows how it works. I was able to talk to someone who confirmed exactly how my pension would be treated and whether it would offset my weekly benefits. Saved me from a ton of guessing. For something like this where the answer really depends on YOUR specific situation, talking to an actual EDD rep is worth it.

0 coins

I've never heard of Claimyr before, I'll check out that video. At this point I've been trying to get someone on the phone for days so anything that actually works sounds good to me.

0 coins

does that actually work?? I've been trying to reach EDD for two weeks straight

0 coins

The pension offset question really does depend on specifics that an EDD agent would need to look at in your file. For general rules the forum is great but for the actual calculation on your claim, getting an agent on the phone is the right move.

0 coins

wait so if you're already getting social security AND a pension AND unemployment that's like three income streams at once?? asking for myself lol

0 coins

Technically yes, though SS and pension may offset unemployment depending on source. UI benefits are generally taxable income too so the government gets their cut regardless.

0 coins

each one has its own rules and thresholds. not as much free money as it sounds when you look at offsets and taxes

0 coins

To be really specific about the California EDD pension offset rule since there's some confusion in threads like this: 1. Pension from a BASE PERIOD employer = your weekly UI benefit is reduced dollar for dollar (or 50% if you contributed to the pension yourself) 2. Pension from a NON-base period employer = no offset, no reduction to your UI benefits 3. You must report ALL pension income on every weekly certification regardless The base period is the first four of the last five completed calendar quarters before you filed your claim. If your old pension employer falls outside that window, you should be fine with full benefits.

0 coins

Okay this actually really clarifies it. My pension employer - I left that company back in 2018. So they're definitely outside my base period. So I should get full UI benefits?

0 coins

Based on what you're describing, yes - leaving in 2018 puts that employer well outside any possible base period for a 2025 claim. But do still report the pension on your weekly cert when asked. EDD will make the official determination.

0 coins

this is the clearest explanation i've seen of this rule. saving this comment

0 coins

I'm freaking out reading this thread because I just filed for unemployment and I'm ALSO getting a small pension and nobody told me I had to report it on my weekly claims!! Did I make a big mistake by not reporting it the first two weeks?? Am I going to get an overpayment notice??

0 coins

Don't panic - contact EDD as soon as you can and explain the situation. If you simply didn't know to report it, they typically have a process to correct certifications. The key is being proactive rather than waiting for them to find it.

0 coins

Definitely reach out to EDD quickly. I'd suggest using Claimyr to get through since waiting on hold for hours is the norm. The sooner you address it the better - EDD does look more favorably on self-reported issues vs ones they discover later.

0 coins

oh god okay I'll try to contact them right away. This is so stressful I had no idea

0 coins

the weekly certification questions literally ask about any pension or retirement income you received that week. its one of the yes/no questions. just answer honestly every week and you'll be fine

0 coins

Good to know, I haven't done my first weekly cert yet - this is helpful so I know what to expect

0 coins

yeah they ask specifically about retirement income in the certification questionnaire

0 coins

Something nobody's mentioned yet - if you're actively looking for work (which you have to be to collect UI), and you're 63 with a pension already coming in, California EDD could potentially question whether you're genuinely available for work. Make sure your job search log is solid and you're documenting your three employer contacts per week. They can ask to verify your work search activities at any time during your claim period.

0 coins

That's a good point I hadn't thought about. I am absolutely looking for work - I'm not ready to fully retire at all. I'll make sure to keep very detailed job search records.

0 coins

Correct on the job search requirements. Age and retirement income don't exempt you from the standard able, available, and actively seeking work requirements. As long as you're genuinely looking, you should be fine.

0 coins

had a coworker who had to do a phone interview with EDD specifically about this - they wanted to verify she was genuinely available for work and not just collecting benefits while retired. she passed no problem because she was actually job hunting but good to be prepared

0 coins

EDD is such a mess honestly. I've been dealing with them for months over a WAY simpler question than this and still haven't gotten a straight answer. The phone system is designed to prevent you from ever reaching a human being I swear

0 coins

the hold times are genuinely insane. I've sat on hold for 3+ hours multiple times

0 coins

This is exactly why I started using Claimyr - claimyr.com - when I need to actually reach a live EDD agent. Took the misery out of the whole process. Check out the demo video https://youtu.be/JmuwXR7HA10 if you want to see how it works before trying it

0 coins

I'm going to look into that claimyr thing seriously. At this point I'm desperate

0 coins

also worth knowing - your unemployment benefits themselves might be reduced if you're receiving severance payments depending on how your employer structured it. severance that's paid as a lump sum vs. salary continuation are treated differently by California EDD. if yours was a lump sum you might be fine but if it's salary continuation that could delay when your benefits start

0 coins

Oh wow I didn't know that distinction existed. Mine was a lump sum payment so hopefully that's the better scenario?

0 coins

Lump sum severance generally doesn't affect UI eligibility or benefit amounts in California. Salary continuation where your employer keeps paying your regular wages for a set period is what can cause issues. Sounds like you're in the better situation.

0 coins

yeah lump sum is the standard situation and EDD typically doesn't have an issue with it. you should be good

0 coins

can retired people even file for unemployment?? i always thought you had to be working to qualify

0 coins

You have to have earned wages during your base period - which means you need to have actually worked and been paid. If someone retired completely years ago and never worked since, they wouldn't have enough recent wage credits to qualify. But OP was actively working up until getting laid off, so they definitely qualify.

0 coins

ohh okay that makes sense. so it's about recent work history not your current status

0 coins

Exactly - UI is based on your work history and wages during the base period, not whether you currently consider yourself retired or not

0 coins

I went through something similar - laid off at 61 while getting a pension from an old employer. My California EDD claim went through with zero offset on the pension. The thing that DID trip me up was that I didn't realize I needed to register with CalJOBS and complete a certain number of job contacts each week. My claim got flagged for a while until I got that sorted out. Don't overlook the job search requirements - they catch a lot of people off guard.

0 coins

CalJOBS - I should look that up. Do I need to register there before I can certify for benefits?

0 coins

Yes you typically need to register with CalJOBS as part of the unemployment process in California. EDD will usually prompt you to do this but sometimes people miss it. You just go to caljobs.ca.gov and create an account, upload your resume, etc. It's their job matching system.

0 coins

CalJOBS registration is required for most claimants, yes. Some people on standby status or in approved training are exempt but standard claimants need to register and actively use it.

0 coins

my mom was in this exact situation and she had NO issues collecting unemployment and her pension at the same time. her pension was from like 15 years ago though so that probably made it easy

0 coins

That's reassuring to hear! My situation sounds similar to your mom's.

0 coins

One more important thing about retirement and unemployment that I haven't seen mentioned - if you decide to start drawing Social Security retirement benefits WHILE you're collecting California EDD unemployment, that is something you'd need to report and it IS subject to the offset calculation. SS retirement is different from a private pension. Some people delay SS to avoid this issue during their unemployment claim period. Worth thinking about strategically if you haven't started SS yet.

0 coins

I'm not taking Social Security yet - I'm waiting until 67 for the larger amount. So this doesn't affect me currently but very good to know for future planning.

0 coins

Good strategic move. The SS offset under California EDD is 50% of the weekly SS benefit amount, so it's not total elimination but it does reduce your UI payments. Delaying SS while claiming UI if you're able to is often the smarter play.

0 coins

Exactly - the 50% offset on SS for California UI is the general rule (since you contributed to SS yourself). Worth factoring into when to start claiming SS if you have flexibility.

0 coins

just want to say this thread has been super helpful. I'm about to turn 62 and my industry has been doing layoffs and I've been worried about this exact question. bookmarking this whole thread

0 coins

Glad it's helping others too! This community has been really informative.

0 coins

The rules can shift so always double-check current California EDD guidelines when you actually need to file, but the core pension offset rules have been pretty stable.

0 coins

I've been trying to figure out if a 401k distribution would count as pension income for EDD purposes. Like if I take money out of my 401k while unemployed does that affect my benefits?

0 coins

Generally 401k distributions are treated differently from pension income for California EDD purposes. A voluntary withdrawal from your own 401k typically doesn't affect UI benefits the same way an employer-funded pension does. However, if your employer contributed to your 401k and you receive a distribution related to separation, it could be different. This is genuinely one of those edge cases where calling EDD directly is the right move.

0 coins

Ugh more complicated than I hoped. I'll try to get EDD on the phone about this.

0 coins

For these kinds of nuanced questions that really depend on your specific account structure, Claimyr (claimyr.com) is honestly the fastest way to get an actual EDD agent to answer. Demo at https://youtu.be/JmuwXR7HA10 - the 401k vs pension question has too many variables for a forum to give you a definitive answer.

0 coins

UPDATE for anyone who finds this thread later - I called EDD (eventually got through after many attempts) and confirmed: private pension from a non-base-period employer does NOT reduce your California unemployment benefits. You report it on your weekly cert, they note it, and your full benefit amount is preserved. Exactly what the people in this thread said. Wanted to leave this here for future searchers.

0 coins

Thank you for posting this!! This is exactly the confirmation I needed. Did they give you any issues about having both?

0 coins

None at all. The EDD rep was actually pretty nice about it. She just confirmed the base period employer question, I said no, and she said my benefits wouldn't be affected. Took about 2 minutes once I got through to someone.

0 coins

this is super helpful, saving this comment for reference

0 coins

For what it's worth I'm a paralegal and help people with EDD issues sometimes. The pension offset rule in California is codified in UI Code Section 1255.3. The key definitions are: (1) pension from base period employer = offset, (2) pension from non-base period employer = no offset, (3) your own contributions to a plan reduce the offset by 50%. The rule applies to pensions, annuities, and retirement pay. Actual Social Security old age benefits fall under a separate but similar provision. If anyone gets an incorrect determination on their pension offset, this code section is what you'd cite in an appeal.

0 coins

Wow thank you for citing the actual code. I hope I won't need to appeal anything but good to have this info.

0 coins

Great reference point. The UI Code section is super useful if someone does end up needing to formally dispute a pension offset determination.

0 coins

this is exactly the kind of concrete info I needed. thank you

0 coins

final update from OP - just did my first weekly certification and answered yes to receiving pension income, entered the amount, and the system processed it without any issues. My full benefit amount was approved. For anyone in the same situation: yes you can collect unemployment and retirement pension at the same time in California, just report everything honestly and make sure the pension isn't from a base period employer. Thanks everyone in this thread for the help!

0 coins

Great outcome! Thanks for coming back to update - these closure posts really help people who find the thread later searching for the same question.

0 coins

congrats!! glad it worked out

0 coins

perfect ending to this thread. bookmarking for future reference

0 coins

Related posts

EDD Phone Number Live Person: Fastest Way to Bypass Menu

California Unemployment AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
43,680 users helped today