Retired From Military 5 Years, Working for USPS Now -Will I Be Eligible for UC?

by John H
(Pennsylvania Unemployment)

Retired From Military 5 Years, Working for USPS Now -Will I Be Eligible for UC?



As the title says, 5 years retired (receiving pension), working for Post Office part time 4 yrs (may lose this job soon). Will I be eligible for Unemployment Compensation in Pennsylvania based on current employment and will there be an offset?




Hi John,

Whether a pension will cancel out any unemployment compensation is something that state rules may vary on.

You should find the effects of retirement payments on unemployment benefits (Table 5-16) helpful.

The United States Department of Labor / Employment and Training Administration prefaces the chart with the following:

Retirement Payments—FUTA requires states to reduce the weekly benefit amount of any individual by the amount, allocated weekly, of any “....governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment which is based on the previous work of such individual....” This requirement applies only to payments made under a plan maintained or contributed to by a base-period or chargeable employer which affected eligibility for or increased the amount of the retirement pay. States are permitted to reduce benefits on less than a dollar-for-dollar basis by taking into account the
contributions made by the worker to the plan in question. (This effectively means the FUTA requirement is limited to 100% employer-financed pensions.) Also, the requirement applies only to those payments made on a periodic (as opposed to lump-sum) basis. As a result, the states may choose from a variety of options in creating a retirement pay provision. In
2008, FUTA was amended to prohibit reductions for pensions, retirement or retired pay, annuity, or other similar payment which is not includible in the gross income of the individual because it was a part of a rollover distribution.


That's the wide federal guideline.

The chart then addresses some of the primary ways states can vary on the subject.

The primary concern is whether your military pension is an excluded pension because your service in the military is no longer included in your base period (BP far right column).

I do not think that just because both of your most recent employments have been with the federal government that your military retirement could be considered coming from the same BP employer.

In fact, that was my only concern for you, so if you find out differently, I'd appreciate it if you'd let me know.

Chris



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