Does unemployment affect Social Security benefits? California EDD question

Wait so I DO have to report Social Security payments to EDD on my weekly certifications? I didn't know that. Will reporting that income reduce my unemployment amount?

Yes and no - pension-type income CAN affect UI benefits depending on the specific situation, but Social Security retirement isn't automatically deducted. It's a nuanced area actually. I'd strongly recommend calling California EDD directly to confirm your specific situation before you make any decisions about claiming Social Security early.

This is actually one of the more complicated areas where people get tripped up. The interaction between Social Security and California EDD unemployment isn't always straightforward and depends on whether you contributed to Social Security through your employer during your base period. Definitely get clarification from EDD directly.

Oh wow I didn't realize different states had different rules about this. That's actually really helpful context. So California specifically removed that penalty?

Correct. California EDD does not apply the Social Security offset that some other states use. You should be fine collecting both simultaneously.

can confirm this, my dad did exactly this a couple years ago in California and had no issues with either payment being reduced

The phone situation at EDD sounds like a nightmare. Did Claimyr actually get you through to a live person? I've been scared to even try calling because of everything I've heard about getting disconnected.

Yeah I actually got through to a live agent. Was pretty surprised honestly. The hold time was still there but I didn't get the busy signal runaround. For something this important it was worth it to me.

seconding this, edd phone lines are absolutely brutal to deal with especially for questions that aren't just standard claim stuff

This is really helpful - so collecting unemployment definitely won't change the calculation of what I'll eventually get from Social Security based on my work history, right? That's what I was most worried about.

Correct. Your Social Security retirement benefit is calculated from your earnings record from actual employment, not from unemployment benefits received. EDD payments are completely irrelevant to that calculation.

also worth noting - the fact that you were laid off doesn't affect social security either. your employer still paid into social security on your behalf during all those years you worked, that record doesn't go anywhere

This is actually the real issue I should probably be focusing on lol. You're right that I got distracted by the neighbor's worry about whether they interact, but the bigger decision is whether early Social Security makes sense at all given my situation.

exactly!! the California EDD unemployment benefit question is actually the easier part. the financial planning question of WHEN to take SS is way harder and more consequential. talk to your financial advisor about that piece.

this happened to my uncle, took SS at 62 while on unemployment, regretted it for years because his monthly check was so much lower than it would have been if he waited

This distinction between Social Security vs pension from a former employer is super important and something I hadn't even thought about. I do have a small pension from a previous job from 10 years ago. Does that one count?

If you're currently receiving pension payments from a former employer whose work is included in your base period, that CAN affect your California EDD weekly benefit amount. This is definitely something to verify with EDD directly because the specific rules depend on when you started receiving it and your base period dates.

Yes this is the correct distinction. Social Security ≠ pension for EDD purposes. They're treated differently. The pension offset rule is still in effect for employer pensions in California while the Social Security offset was eliminated.

Two weeks trying to get through sounds absolutely exhausting. I might have to look into that Claimyr thing because you're right, I want an official answer not just forum posts (even though this has all been really helpful).

The forum posts will point you in the right direction but for a decision about your retirement timing you really do want official confirmation. Good luck with everything - the situation is more manageable than it initially seems.

Oh this is another thing I hadn't even thought about - the earnings test! So if I took Social Security early and then somehow went back to work part time, the UI payments wouldn't count against the SS earnings limit?

Right - the earnings test only counts actual wages and self-employment income. UI benefits are excluded. But WAGES from going back to work while collecting early SS before full retirement age WOULD count toward the limit, so be careful there if you go back to part time work.

This is accurate. The Social Security earnings test applies to wages, not unemployment compensation. OP should be aware of this distinction if they go back to any part time work.

This is genuinely reassuring to hear a real world example! Did she have to do anything special when she started collecting both at the same time?

nope just started reporting the SS income on the weekly EDD cert under other income. thats it. nothing complicated at all

real world examples like this are actually so helpful on these forums. way better than just abstract rules

Oh this is actually really important. So even at 63 collecting Social Security, I'd still be required to do the full 3 employer contacts per week for my California EDD claim?

Yes, unless you're on approved standby status or have some other exemption, the job search requirements apply regardless of age or other income sources. California EDD expects full compliance.

Correct. Job search requirements are tied to UI eligibility, not to your age or other income. The only exemptions are specific situations like standby status with a definite return to work date, or certain union hiring hall situations.

Yes absolutely. Already receiving Social Security retirement does NOT disqualify you from filing for California EDD unemployment benefits if you lose a job. As long as you meet the standard eligibility requirements (worked enough, lost job through no fault of your own, able and available to work) you can collect UI even if you're already drawing SS.

oh thats actually good to know, i wasnt sure about that

This is correct and actually a fairly common situation. Plenty of people work part time or full time while on Social Security and if they get laid off they can file a California EDD UI claim just like anyone else.

My financial advisor said something similar. The math on delaying Social Security is pretty compelling in a lot of scenarios. I think I got distracted by the neighbor's fear-based question and need to refocus on the actual decision.

yes this is the RIGHT framing. the answer to 'does unemployment affect social security' is basically no, so now the real question is just the financial planning question of when to claim SS which is a totally separate analysis

This summary is incredibly helpful, thank you. I feel like I have a much clearer picture now and know what questions to actually ask when I call EDD.

Good summary. The pension vs Social Security distinction point 4 is especially important and trips people up constantly.

Solid breakdown. The job search requirements point is one a lot of people overlook too when they're in this situation.

I will absolutely report back. Planning to call early next week. Fingers crossed I can get through!

yes please update us, questions like this where someone actually follows up are so much more useful than threads that just die

This is a really reassuring data point - the fact that UI payments don't appear on your Social Security earnings record confirms they're truly separate.

Correct. Your SSA My Social Security account online will show your annual earnings record and UI benefits will never appear there. Confirms they are entirely separate systems tracking entirely different things.

Yes - there used to be a rule in some states including California where if you were receiving Social Security retirement, your weekly UI benefit amount would be reduced by 50% of your weekly Social Security payment. California eliminated this offset, meaning they stopped applying that reduction. So now receiving SS has no effect on your California EDD weekly benefit amount.

ohhhh ok that makes total sense now. so other states might still do this reduction?

Some states still apply variations of the offset, yes. This is specifically a California EDD question and answer - if someone in another state is asking the same question they'd need to check their specific state's rules.

Yeah this is the earnings test someone mentioned earlier. My financial advisor walked me through this but it's good to have it confirmed here too. Basically another reason to think hard before taking SS early while still potentially entering the workforce.

Exactly. The unemployment/SS interaction question is simpler than people fear. The broader financial timing question of when to take SS is where the real complexity lives.

This is actually a really encouraging outcome to hear about. The idea of using EDD unemployment as a bridge while waiting for a better SS timing makes a lot of sense.

thats exactly how i thought about it. the edd benefit let me delay ss and get a bigger monthly check for the rest of my life. worth it.

this is such a smart way to use the system honestly. UI as a bridge to delay SS claiming. more people should think about it this way.

SSDI is actually different and more complex. If you're on SSDI and working, you're likely in a Ticket to Work situation or using a Trial Work Period. Getting laid off from that part time job could affect your SSDI status and the California EDD unemployment question becomes secondary to whether your SSDI continues. I'd strongly recommend contacting both SSA and California EDD about your specific situation - this is genuinely more complicated than the retirement SS question in this thread.

oh wow I had no idea it was that different. Guess I need to make some calls. Thanks for flagging this.

Yes please don't assume the answer in this thread applies to SSDI - it's a genuinely different situation with different rules and interactions with employment. Get official guidance from both agencies.

Great update and glad you got through! Confirms everything that was discussed. Good luck with the SS timing decision - sounds like you have a solid handle on it now.

Really glad you got official confirmation. That's the best possible outcome - forum advice pointing you in the right direction and then an official EDD agent confirming the details.

amazing update!! and yes now focus on that SS timing question with your financial advisor. you've got the EDD piece sorted.

love when threads have actual resolution updates. thanks for coming back to confirm!