Can state employee acquire unemployment and a pension on the identical time?
Q. I’m about to retire and begin taking my New Jersey state pension. Can I obtain unemployment advantages?
— State employee
A. Congratulations in your retirement.
In the event you’re interested in unemployment advantages, we surprise in case you’re getting pushed out of your job relatively than voluntarily retiring.
In any case, to be eligible for advantages in New Jersey in 2019, you have to have labored a minimum of 20 base weeks in coated employment or you have to have earned $8,600, mentioned Charles Pawlik, a licensed monetary planner and chartered monetary analyst with Beacon Belief in Morristown.
He mentioned for claims filed in 2019, the minimal base week quantity is $172. Wages will need to have been earned throughout a 52-week interval known as a “base 12 months,” which varies relying on the date of your declare – alternate base 12 months intervals could also be thought of.
“Usually talking, you have to be capable of work, be out there for work, be actively looking for work, and never refuse a proposal of appropriate work to be eligible for unemployment advantages,” he mentioned.
The Division of Labor and Workforce Improvement web site is an effective useful resource to make the most of to get extra detailed data surrounding your eligibility for unemployment advantages. You possibly can entry the web site right here.
Assuming you meet the eligibility standards to gather unemployment advantages, the quantity that you just might be able to acquire might be affected by your pension.
“In case you are receiving a pension from an employer whom your declare is predicated on, your unemployment advantages could also be lowered,” Pawlik mentioned. “The quantity that your advantages could also be lowered is decided by whether or not your employer contributed your entire quantity in the direction of your pension, you contributed your entire quantity, or each you and your employer contributed in the direction of the pension.”
He mentioned in case your employer contributed your entire quantity in the direction of your pension, your unemployment advantages could also be lowered by 100 p.c of your weekly pension quantity.
Pawlik provided this instance:
In case your weekly pension quantity is $300 and your weekly unemployment profit quantity is $400, 100 p.c of your weekly pension quantity could be subtracted out of your weekly unemployment profit, leaving you with $100 per week in unemployment advantages.
If each you and your employer contributed in the direction of the pension, your unemployment advantages could also be lowered by 50 p.c of your weekly pension quantity. Taking the identical instance, Pawlik mentioned, the $400 weekly unemployment profit could be lowered by $150 – 50 p.c of the $300 weekly pension quantity – leaving you with $250 per week in unemployment advantages.
“In the event you contributed your entire quantity in the direction of your pension and your employer contributed nothing, no discount could be made to your unemployment advantages,” he mentioned. “It might be a good suggestion so that you can make an appointment along with your native unemployment workplace and communicate to a consultant to make clear your eligibility for unemployment advantages primarily based in your private circumstances.”
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Karin Worth Mueller writes the Bamboozled column for NJ Advance Media and is the founding father of NJMoneyHelp.com. Comply with NJMoneyHelp on Twitter @NJMoneyHelp. Discover NJMoneyHelp on Fb. Join NJMoneyHelp.com’s weekly e-newsletter.