13 Jul Can I get unemployment if I have a lump sum pension?
Q. Can I still get unemployment benefits in New Jersey if I am 62 and receiving a lump sum pension from my employer who fired me?
A. We’re sorry to hear about the loss of your job.
When you receive pension income, it is possible that your unemployment claim will be affected.
Your claim may be reduced by either 50% or 100% depending on who made the contributions to the pension plan from the employer your claim is based on, said Joseph Sarnecki, a certified financial planner with U.S. Financial Services in Fairfield.
“If your employer contributed the entire amount toward your pension, your benefits may be reduced by 100%,” he said. “If it is a combination of your employer and your own contributions, your benefits may be reduced by only 50%.”
If you contributed the entire amount, there may be no reduction, he said.
“Regarding a lump sum, assuming you roll this over to an IRA to avoid tax on the total amount, no distribution will have been made and this will not affect your ability to receive unemployment,” Sarnecki said.
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This story was originally published on July 13, 2022.
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