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 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! 😅