- Connecticut reduces weekly unemployment payments by the amount of income a person generates. This can come from part-time work, a temporary job or pension payments. However, Connecticut takes the view that only employer contributions to a pension count as income. An employee's own pension contributions are considered their own money, or in essence, savings -- which does not affect unemployment benefits.
- The Connecticut Department of Labor uses a formula to determine how pension income will affect unemployment benefits. Officials use the percentage of employer contribution multiplied by the weekly pension withdrawal. For example, if an employer contributed 25 percent of an employee's pension or retirement fund, then only 25 percent of the weekly pension withdrawal will count against unemployment benefits. Thus, if a claimant receives $400 a week from his pension, the state will deduct $100 from the claimant's weekly unemployment benefits.
- When employer-contributed pension benefits exceed the weekly maximum of $555 per week, a claimant can no longer receive unemployment benefits. However, if the claimant runs out of pension benefits, he may again become eligible for assistance.
- Just because a person has a pension doesn't mean he is required to use it. Connecticut residents can elect to allow their pensions continue to vest and claim full unemployment benefits. Issues with unemployment eligibility and payment amounts only occur when people tap their pension benefits.
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