EDD benefits while receiving company pension - Am I eligible for unemployment?

Yes, you can collect unemployment while receiving a pension, BUT your weekly benefit amount will likely be reduced. California EDD uses something called "pension offset" - they deduct part of your pension payment from your weekly UI benefit. The formula depends on whether your employer contributed to your pension. If they paid 100% of it (which sounds like your case), EDD will reduce your weekly benefit by the prorated weekly amount of your pension. So your $2,100 monthly pension equals about $485 weekly, which would be subtracted from your UI benefit. For example, if you qualify for the maximum weekly benefit of $575, you'd receive about $90/week after the pension offset ($575 - $485 = $90). Make sure you accurately report your pension when you certify each period!

I went through this EXACT thing in 2023!!! Got laid off from Pacific Gas after 19 years and started collecting my pension right away. EDD is a NIGHTMARE about this!!! They made me wait almost 9 WEEKS before I got ANY money because they had to "calculate the pension offset" or whatever. And then they had the nerve to BACKDATE the reduction to my first payment so I got a notice saying I was overpaid for the first month!!! Had to pay back like $1800!!! RIDICULOUS!! My advice - CALL THEM IMMEDIATLY to tell them about the pension before your first certification!!! Don't wait for them to ask!!!

If you're having trouble getting through to EDD (who isn't lol), try using Claimyr. I was in a similar situation last year and couldn't get through to explain my pension situation. Used their service and got connected to an actual EDD rep in about 20 minutes instead of spending days calling. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Totally worth it to avoid the pension offset confusion. The rep I spoke with was able to note my account properly so I didn't have payment delays or overpayment issues.

wait do u have to report 401k too? i just started getting UI and didnt tell them about my 401k from old job

Here's what you need to know specifically for 2025 (rules updated this year): 1. Report your pension on question #2 during certification "Did you receive any other type of income?" 2. The current formula for company-funded pensions is: Weekly UI benefit - (Monthly pension ÷ 4.33) = Adjusted weekly benefit 3. You need to submit proof of your pension amount. Upload your pension award letter to UI Online under "Upload Documents" 4. You still need to meet all work search requirements despite getting a pension 5. If your adjusted benefit would be less than $40/week, you may be denied benefits entirely under the new minimum threshold rule The key is proactive reporting. If you wait for them to discover your pension later, you'll almost certainly face penalties and overpayment issues.

I know this doesn't directly answer your pension question, but since you mentioned you're only 58 and not ready to retire - make sure you're also registering with CalJOBS and checking out the EDD Workforce Services. They have special programs for 'older workers' (their term, not mine!) that can help with job placement. My husband was in a similar situation last year at 56, and they were surprisingly helpful with finding opportunities that valued his experience.

One more thing NO ONE told me - if you do get that partial UI payment after the pension deduction, you'll STILL qualify for the EDD UI Mastercard/Money Network card and you NEED to keep it even if the amount seems small!!! That card gives you access to your EDD account info and sometimes they send important notices ONLY to people with active cards!!

My situation wasnt exactly the same but kinda similar? I took early retirement from state job last year (im 62) and get pension but its small like $1500/month. Then i got part time job at Walmart but they cut my hours to nothing so i filed unemployment. EDD sent me SOOO many confusing questions about my pension! I had to have phone interview and everything. ended up getting benefits but took like 2 months. just be prepared for long wait and confusion!

One additional tip regarding your pension and UI benefits: Make sure you're very clear about the exact date you started receiving pension payments. If there's any gap between your last day of work and your first pension payment, that period might qualify for full UI benefits without the offset. Also, if you're able to get through to EDD, ask them about the "reasonable assurance of employment" rule. In some cases, if you can demonstrate that you're actively seeking work in a different industry than your previous employer, you might qualify for different offset calculations. Keep in mind that UI benefits, even reduced ones, extend your overall financial runway while job hunting. And don't forget that receiving ANY UI amount (even $1/week) qualifies you for other assistance programs if needed.

Just wanted to add something important that I learned the hard way - when you report your pension during certification, make sure you report the GROSS amount, not the net amount after taxes. I made that mistake initially and it caused a whole mess with my calculations. Also, if your pension includes any cost-of-living adjustments (COLA) throughout the year, you'll need to report those changes to EDD immediately. Mine went up by $47/month in July and I didn't think to report it right away - ended up with another overpayment notice. One last thing - if you're planning to look for work in Arizona (since that's where your company moved), make sure you understand how that affects your California UI claim. There are interstate agreements but the rules can get complicated if you're job searching out of state. Good luck with everything! The manufacturing industry has been brutal lately with all these relocations and "restructuring" moves.

I'm dealing with almost the exact same situation right now! Got laid off from a tech company after 18 years and they're offering early pension at 55. I've been so worried about the UI eligibility issue. Reading through all these responses has been incredibly helpful. The pension offset formula makes so much more sense now - I was completely confused about how it worked. One question though - has anyone had experience with how stock options or equity payouts are treated? My severance package includes some vested stock options that I can exercise, but I'm not sure if EDD considers that "income" that needs to be reported during certification. Don't want to make any mistakes that could cause problems later! Also want to echo what others said about calling EDD early. I've been putting it off because I know how hard it is to get through, but sounds like being proactive is way better than dealing with overpayment issues down the line.

I'm in a similar boat but with a twist - got laid off from a union job after 20 years and my pension is through the union, not directly from my employer. Does anyone know if the pension offset rules work differently for union pensions vs company pensions? Also seeing all the advice about calling EDD early - has anyone had luck with the online chat feature? I know it's usually useless but wondering if pension questions might get better responses there than trying to get through on the phone. Really appreciate everyone sharing their experiences here. It's scary enough being laid off at this age without having to worry about accidentally messing up your UI benefits because of pension complications!

Just want to add one more important consideration for everyone in similar situations - make sure you understand how your pension affects your taxes! I learned this the hard way last year. When you're receiving both pension income and UI benefits (even reduced ones), you might end up in a different tax bracket than expected. UI benefits are fully taxable, and pension income is usually taxable too. You can elect to have taxes withheld from your UI payments, but the default is no withholding. I ended up owing a lot more in taxes than I planned for because I didn't account for the combination of pension + UI income. Definitely recommend talking to a tax professional or at least using tax software that can handle multiple income sources. Also, don't forget that if you do find a new job later in the year, having received both pension and UI income earlier can make your tax situation pretty complicated. Just something to keep in mind for planning purposes! The silver lining is that job search expenses are sometimes deductible, so keep track of those receipts for networking events, resume services, etc.

I'm just starting to navigate this pension + unemployment situation myself, and wow, this thread has been incredibly eye-opening! I had no idea about so many of these details. I'm 61 and got laid off from my engineering job last month. My company is offering an early pension option that would give me about $1,800/month. I was hesitant to take it because I wasn't sure how it would affect unemployment benefits, but reading everyone's experiences here makes me feel more confident about moving forward. The tax implications that @Savannah brought up are particularly concerning - I definitely need to factor that into my decision. And the advice about calling EDD proactively rather than waiting for them to discover the pension later seems crucial based on all the horror stories about overpayments and delays. One thing I'm still unclear on - if I haven't started collecting the pension yet, should I wait to apply for it until after I see what my UI benefit amount would be? Or does it not matter timing-wise as long as I report everything accurately? Thanks to everyone who has shared their experiences. This is exactly the kind of real-world advice you can't get from official websites or generic guides!

I'm 54 and just went through this exact situation 6 months ago! Got laid off from a logistics company after 16 years and started collecting my pension right away ($1,950/month). Here's what I wish someone had told me upfront: YES you can collect both, but the pension offset means your UI benefits will be significantly reduced. In my case, I went from a potential $520/week UI benefit down to about $70/week after the pension deduction. The most important thing - and I cannot stress this enough - is to be completely transparent with EDD from day one. During your first certification, when they ask about "other income," report your pension immediately. Don't wait for them to ask follow-up questions or try to figure out if it "counts." It counts. I spent 3 weeks calling EDD before my first certification just to make sure they had all my pension details on file. It was frustrating but SO worth it because I never had any overpayment issues or delays. Some of my former coworkers who didn't report upfront are still dealing with EDD debt collectors 8 months later. Also keep every single piece of pension documentation - award letters, payment stubs, everything. EDD may ask for proof multiple times throughout your claim period. The reduced UI amount might seem small, but it still helps bridge the gap while job hunting. Plus you stay eligible for job training programs and other workforce services. At our age, every bit of support helps!

I'm currently dealing with a similar situation and this entire thread has been incredibly valuable! I'm 59, just got laid off from a telecommunications company after 21 years, and I'm facing the same pension + unemployment decision. What's been most helpful is seeing the actual numbers people have shared. The pension offset formula that @Elin provided (Monthly pension ÷ 4.33 subtracted from weekly UI benefit) finally makes sense of how this all works. I was getting so much conflicting information from HR and former colleagues. The unanimous advice about calling EDD proactively before the first certification is really striking - seems like every single person who waited or tried to figure it out later had major problems with overpayments and delays. That's definitely convinced me to spend whatever time it takes to get through to them first. I'm also really appreciating the practical tips about documentation, tax implications, and even things like keeping the EDD card for account access. These are the real-world details you just don't get from official sources. For anyone else just starting this process - this community discussion has been more informative than hours of searching EDD's website or calling their general help line. Thanks to everyone who shared their experiences, especially the specific numbers and timelines. It really helps to know what to actually expect rather than just generic policy descriptions. Now I just need to work up the courage to start calling EDD! 😅

As someone who works in HR and has helped many employees navigate this exact situation, I wanted to add a few procedural points that might help: 1. **Document Everything**: Keep a detailed log of every interaction with EDD - date, time, rep name/ID, and what was discussed. This becomes crucial if there are any discrepancies later. 2. **Weekly Certification Timing**: Your pension payment date vs. your UI certification week can affect calculations. If your pension comes mid-week, be prepared to explain the timing to avoid confusion. 3. **Appeal Process**: If EDD makes an error in your pension offset calculation (which happens more often than it should), you have 30 days to file an appeal. Don't assume their math is always correct - double-check using the formula others have shared. 4. **Work Search Requirements**: Even with reduced benefits due to pension offset, you still need to meet the same work search requirements. Keep detailed records of your job search activities. 5. **COBRA Considerations**: If you're on COBRA from your previous employer, budget for those premiums continuing even with reduced UI income. Many people forget this additional expense when calculating their monthly budget. The key takeaway from everyone's experiences is clear: proactive communication with EDD prevents 90% of the problems people encounter with pension offsets.

I'm 56 and went through this exact situation last year after being laid off from a defense contractor. Got my pension ($1,875/month) and was terrified about the UI implications after hearing conflicting advice from everyone. The pension offset is real, but manageable if you handle it right. My weekly UI benefit went from $485 to about $52/week after the offset. Not much, but it kept me connected to EDD services and helped with small expenses during my 4-month job search. Two critical things I learned: 1) Call EDD BEFORE your first certification - I spent 2 days calling but finally got through and had them note my pension details properly. This saved me from the overpayment nightmares others experienced. 2) Save every pension document in a dedicated folder. EDD asked for my pension verification letter THREE different times during my claim. Also want to mention - don't overlook CalJOBS registration even if your UI amount is small. The career counseling services were actually really helpful for someone in their 50s transitioning industries. They connected me with employers who valued experienced workers rather than just focusing on age. The whole process is stressful but definitely doable. Just be transparent, keep good records, and don't let the reduced benefit amount discourage you from applying. Every bit helps when you're job hunting at our age!