Can I collect both a small pension and PA UC benefits if laid off seasonally?
Hi everyone, I'm in a bit of a situation and really need advice. I'm semi-retired working part-time at a landscaping company, and they just laid me off for the winter season (typical in our industry). I'm eligible for a small pension from my previous full-time employer that I worked at for 25 years, but I haven't started collecting it yet. Could collecting this pension disqualify me from getting unemployment benefits during my seasonal layoff? I really need both incomes to make ends meet. Has anyone dealt with this pension + UC situation before? I'm not sure if I should apply for the pension now or wait until spring when I'm back working. Thanks for any help!
17 comments
Lorenzo McCormick
ya i think ur pension might affect ur benefits but it depends how much it is. my uncle got like $600 pension and they just reduced his UC by some % not eliminated it completely
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Ayla Kumar
•Thanks for responding! Do you know roughly what percentage they reduced it by? I'm trying to figure out if it's even worth applying for both.
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Carmella Popescu
PA UC does have what's called a "pension deduction" rule. If you receive a pension from an employer that contributed to your base year wages (the wages used to calculate your UC benefit), then your weekly UC benefit amount will be reduced. The reduction is calculated by taking your weekly pension amount and subtracting it from your weekly UC benefit. However, if your former employer (the one paying the pension) is NOT the same employer that laid you off, and they didn't contribute to your base year wages, then your pension might not affect your benefits at all. You should definitely disclose the pension when you apply for UC though.
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Ayla Kumar
•This is incredibly helpful! My pension would be from a completely different employer than the landscaping company that laid me off. I worked for them years ago, well before my base year. So it sounds like I might be able to collect both without a reduction? I'll definitely disclose everything when I apply.
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Kai Santiago
I was in almost the exact same situation last year. I'm also semi-retired and work seasonally in construction. I get a pension from my old job at the steel mill that I worked at for 30 years. When I applied for UC after my seasonal layoff, I had to report my pension amount during the application process. Since my pension was from a different employer than the one who laid me off (and outside my base year period), it did NOT reduce my UC benefits at all! I was able to collect my full pension and my full UC payment each week. The key is that they were different employers. But be warned - you MUST report the pension when you apply. If you don't and they find out later, they'll hit you with an overpayment notice and possibly penalties for misrepresentation.
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Ayla Kumar
•Thank you so much for sharing your experience! This gives me a lot of hope. Our situations sound remarkably similar. I'll definitely report everything correctly when I apply. Did you have to provide any documentation about your pension when you applied for UC?
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Lim Wong
BE CAREFUL!!! i didnt report my 401k withdrawals when i got UC last year and they found out somehow and now i owe them $4,800 in overpayments plus theyre charging me a penalty!!!! PA UC doesnt mess around with this stuff. they look at EVERYTHING so dont try to hide ur pension!!!
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Carmella Popescu
•Just to clarify - 401k withdrawals and pensions are treated differently under PA UC rules. A 401k withdrawal is considered income in the week received, while a pension is subject to the pension deduction rule I mentioned above. But yes, always report everything accurately to avoid overpayments and penalties.
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Dananyl Lear
Have you tried calling the UC service center to ask about your specific situation? I struggled for weeks to get through to them when I had a pension question. Eventually I found a service called Claimyr (claimyr.com) that helped me get through to a PA UC agent without waiting for hours. They have a video showing how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 It was definitely worth it because the UC agent walked me through exactly how my pension affected my benefits. Every situation is a bit different based on when you worked, who paid into the pension, etc. Getting an official answer from them saved me a lot of stress.
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Noah huntAce420
•does that claimyr thing actually work? i've been trying to reach someone at UC for over a week about my open issue...
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Dananyl Lear
Yes, it worked for me! Got through to a UC rep in about 20 minutes when I'd been trying for days on my own. They don't guarantee an immediate resolution of your issue, but at least you can talk to a human who can check your claim.
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Ayla Kumar
•Thanks for the tip! I've been trying to call them all morning with no luck. I'll check out that service if I can't get through in the next day or two. I really need to get clear information about my specific situation.
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Ana Rusula
Hi there, I work seasonally too (construction) and collect UC every winter. The most important thing with seasonal work is to make sure you select "YES" to the question asking if you expect to return to work with your employer. This classifies you correctly as a seasonal worker rather than permanently laid off. As for the pension, my coworker gets both his pension and UC with no issues, but his pension is from his military service, not a previous employer. The rules are complicated so definitely get an official answer.
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Ayla Kumar
•That's really good to know about selecting "YES" for returning to my employer! I definitely plan to go back in the spring when they start hiring again. I'll make sure to indicate that on my application.
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Fidel Carson
pension rules r so complicated!!! my brother had his UC reduced cause of pension but my neighbor didnt idk why the difference honestly PA UC system seems like it just does whatever it wants sometimes lol but definitely report everything or theyll come after you
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Kai Santiago
•The difference is likely because your brother's pension was from an employer that contributed to his base year wages, while your neighbor's pension was from an employer outside the base year period. The rules are actually consistent, but they depend on specific details of each person's work history.
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Ayla Kumar
Thank you all for the helpful information! I'm going to apply for UC this week and make sure I disclose my pension situation completely. Based on what everyone has shared, it sounds like I might be able to collect both without a reduction since my pension would be from a completely different employer than the one who laid me off seasonally. I'll update this thread after I speak with someone at the UC office to let you all know how it turned out. Thanks again for all your help!
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