Does unemployment affect retirement benefits? California EDD questions answered

This is really helpful, thank you. So I don't need to worry about Social Security being impacted at all? That's the big one for me. My pension hasn't started yet - I'm deferring it until 65 - so maybe the pension offset thing doesn't apply to me right now.

yeah the SS thing is totally separate i collected unemployment for like 8 months a few years back and my SS estimate on the SSA website literally did not change at all

To add to what was said about the pension offset - California EDD does have rules about pension income. If you're not currently receiving pension payments, you're likely in the clear for now. But once you start drawing that pension, you'd need to report it if you were still on UI at that point. Since you said you're deferring to 65, just make sure you're not on UI when that kicks in, or if you are, report it immediately on your weekly certifications.

It depends on the type of retirement income. If you're receiving a pension that was funded in part by your former employer, California EDD may offset your weekly benefit amount by a portion of that pension. But Social Security retirement benefits - California EDD handles those differently. You can generally collect both, subject to the pension offset rules. The key is always disclosing everything on your weekly certifications.

ohh ok that makes more sense. i was thinking about going back to work part time while collecting too and wasn't sure how that worked either

Oh wow, I hadn't even thought about the job search requirements being a potential issue. I've been doing them but kind of half-heartedly. Good wake up call, thank you.

This!!! The job search requirement is NOT optional even if you're older or took a retirement package. California EDD does audit claims and if your job search activities don't hold up they can disqualify you and ask for money back. Keep records of everything - dates, company names, contact method, position applied for.

I actually used Claimyr to get through to a California EDD agent when I had questions about my claim situation after retiring. I'd been trying to call EDD for days and couldn't get anyone on the phone - Claimyr basically holds your place in line and calls you back when an agent is available. Got my questions answered in one shot. Their site is claimyr.com and there's a demo video at https://youtu.be/JmuwXR7HA10 if you want to see how it works. For something as specific as your situation, talking directly to an EDD rep is really the safest bet.

Okay this is actually something I hadn't considered at all - the tax interaction. So it won't affect the AMOUNT of my Social Security I receive eventually, but it could affect how much of it gets taxed in a given year if my income is higher?

exactly right. social security taxation is based on your 'combined income' formula which includes half your SS plus all other income including unemployment. so collecting UI could push you into a higher SS taxation bracket for that year. not a reason to NOT collect UI, just something to plan for

good point on the taxes. i had no idea unemployment was taxable when i first filed and got hit with a decent tax bill. california edd lets you opt in to have federal taxes withheld from your payments so you're not blindsided at tax time

The pension offset rule for California EDD works like this: if you're receiving a pension from a BASE PERIOD employer (meaning the employer whose wages are being used to calculate your UI claim), then your weekly benefit amount can be reduced by the weekly equivalent of that pension. However, if the pension is from a DIFFERENT employer than the one you're claiming UI from, and that employer didn't contribute to your current UI claim, the offset typically doesn't apply. Since your pension is from a previous unrelated employer, you're likely fine - but you should still report it on your claim application to be safe and let EDD make the official determination.

That's a relief, thank you! I did report it on my initial application but hadn't heard anything back about it affecting my benefits, so maybe EDD already reviewed it and it wasn't an issue.

I got a lump sum payment so hopefully that's the better scenario. My claim did get approved and benefits started, so I think I'm okay on that front.

lump sum is definitely the better one for UI purposes. my coworker took continuous severance payments and had to wait until they ended before EDD would pay him anything

this is such a good point that a lot of people miss. the type of separation package you get really matters for EDD timing

SSDI and unemployment are actually in tension with each other in a complicated way. To receive unemployment, you must certify that you are able to work, available for work, and actively seeking work. To receive SSDI, you've certified that your disability prevents you from working. Claiming both at the same time can create a conflict that could put both benefits at risk. Your dad really should consult with a benefits counselor or attorney before filing for UI - this is a situation where getting the wrong advice could have serious consequences for his SSDI.

oh wow okay i had no idea. i'll tell him to talk to someone before filing anything. thank you for the warning

Wait really? So I could take some part-time consulting work and still keep some of my unemployment? That's actually really useful to know. Do I need to pre-approve it with EDD or just report it on my weekly certification?

Just report it on your weekly certification - you report gross wages for the week they were EARNED (not when you were paid), and EDD calculates your partial benefit automatically. No pre-approval needed. Just be honest and accurate on the reporting.

This is correct. The partial benefit calculation can actually make UI really valuable for people doing some freelance or consulting while job searching. Just report everything accurately or you risk an overpayment notice later

There is NO age limit for California EDD unemployment. As long as you worked enough to establish a valid base period claim and you meet the eligibility requirements (able and available to work, actively seeking employment), you can file regardless of age. The fact that you're receiving Social Security retirement does NOT automatically disqualify you - Social Security retirement income is generally not subject to the pension offset rules in California (unlike employer pensions). You should absolutely file if you have qualifying wages.

That's great news, I wasn't sure if they'd just reject me outright because of my age or SS status. Filing this week then.

good luck! make sure you have your employment records from the last 18 months ready when you file

I totally understand that frustration - I went through the exact same thing. What finally worked for me was using Claimyr. It's a service that essentially navigates the EDD phone system for you and calls you back when an actual agent is available - you don't have to sit on hold yourself. I was skeptical at first but it actually got me connected to a live EDD rep the same day I signed up. You can check it out at claimyr.com and they have a video showing how it works at https://youtu.be/JmuwXR7HA10. For a pension-specific question like yours, you really do need to talk to an actual agent rather than hoping EDD's website answers it.

okay i literally just watched that video and signing up right now because i cannot keep doing what i'm doing. three weeks of this is insane

claimyr worked for me too when i had an adjudication issue that i couldn't resolve online. the hold time thing is absolutely the worst part of dealing with edd

Each unemployment claim in California is evaluated independently based on your base period wages for that specific claim. There's no 'credit' system or priority for having claimed before. What does matter is your earnings history - every time you work and pay into the UI system through payroll taxes, those wages can potentially be used to establish a future claim. So in a sense, working builds your future UI eligibility, but collecting UI doesn't give you any direct advantage or disadvantage for future claims.

makes sense, thanks. i was thinking of it kind of like airline miles which obviously doesn't make sense lol

California EDD generally does NOT count 401k distributions as wages or pension income for UI purposes - they're treated as asset withdrawals rather than ongoing income. This is different from a pension, which is a continuing periodic payment. So taking a 401k distribution typically doesn't reduce your UI weekly benefit amount. However, you should still mention it when you file your claim if asked, and it definitely has tax implications even if it doesn't affect your UI amount directly.

Huge relief to hear that. I was worried I'd accidentally reduced my own benefits by touching the 401k. The tax thing I'm already dealing with but at least it won't mess up my unemployment checks.

yeah 401k is totally different from a pension in edd's eyes. pension is ongoing income, 401k withdrawal is just liquidating your own savings essentially

Noted and agreed. I'm being very careful about that. Right now I have no income to report other than the UI benefits themselves, but once I start any consulting work I'll make sure to report it to the cent.

and keep records!! screenshot your certifications, note down the dates and amounts. if anything ever goes sideways you'll want that paper trail

this advice is gold. i had an overpayment claim against me once because EDD's records didn't match mine and having my own documentation saved me

Social Security retirement benefits in the US are NOT means-tested - there is no income or asset limit that reduces your SS retirement benefit amount. What some people confuse this with is the Social Security earnings test, which applies ONLY to people who claim Social Security benefits BEFORE their full retirement age while still working. In that specific scenario, if you earn above a certain threshold from WAGES, SS can temporarily withhold some benefits. But unemployment is not wages, so it doesn't trigger the earnings test, and after full retirement age the earnings test doesn't apply at all anyway. So no, collecting UI will not reduce your actual SS monthly benefit.

ohhhh okay i see i was definitely confused about what means testing even means in this context. thanks for breaking that down

Yes, absolutely must report it. If for any reason OP is still on UI when the pension begins at 65, they would need to report the pension on their weekly certification and EDD would apply the pension offset calculation at that point. In practice most people's UI claim would have expired before 2 years passes, since a benefit year is only 52 weeks. But if they filed a new claim later and were also drawing the pension, same rules apply - report the pension and let EDD determine the offset.

I'll be long off UI before 65 I think - my benefit year runs out before then. But good to know for future reference in case I ever find myself in this situation again.

wait is this why my claim might be sitting in adjudication?? i have a small pension and i filed for unemployment after getting laid off and my claim has been in adjudication for going on 5 weeks with no explanation

Very possibly yes. Pension income can trigger an adjudication review because EDD has to manually calculate the offset amount. Five weeks is on the longer side though - if you haven't been able to reach anyone by phone, that's where getting through to an actual agent becomes critical. The Claimyr service someone mentioned earlier in this thread would be worth trying - I've heard multiple people in similar situations say it helped them actually reach EDD to get answers on their adjudication status.

i already signed up for claimyr after someone mentioned it above, waiting for my callback. fingers crossed this finally gets me some answers

Yeah that warning from earlier in this thread really stuck with me too. I've been doing my three contacts per week and keeping actual records. I have a spreadsheet with dates, company names, job titles, and how I applied. Not worth the risk of messing around with it.

spreadsheet is exactly the right move. i do the same thing. also make sure you're not counting the same company twice in a short period - EDD can flag that

i use a google sheet too and take screenshots of every job application confirmation email. extra paranoid maybe but i sleep better at night lol

honestly being paranoid about documentation is the right call with edd. the system has so many ways things can go wrong that your own records are the only protection you have