Will my military retirement pay offset unemployment compensation? Will my military retirement pay offset unemployment compensation? I can’t tell you without knowing when you retired, when you worked and when you stopped working .. and what state you live in. I use the USDOL’s resource for determining whether it will or won’t. USDOL Comments for Will my military retirement pay offset unemployment compensation? Average Rating Mar 09, 2011Rating UC for retired military in PA by: Keith P UC for retired military in PA I have been retired from the military for over two years and I’ve been working for a company for over two years. I receive a military pension. Am I eligible for unemployment compensation from the state of PA? Will my UC payments be reduced due to my military pension? It is a state specific question. And whenever asked .. I direct everyone to the chartbooks located at the USDOL so they can see for themselves. You could use the search bar and try plugging in the terms military pension or military retirement and I’m sure you would come across the resource link. The issue is relative to the base period which is attached to every unemployment claim. I took a peek and PA has an X in the column which say “Excludes Pensions Not Affected By BP Work” .. as deductible income from UC.