- NC Voluntary Election For Withholding Of Individual Income Tax
- North Carolina Unemployment Rates
- QUALIFYING FOR UNEMPLOYMENT IN THE STATE OF NORTH CAROLINA
- NC Unemployment Law: Unemployment Eligibility and Reason for Separation
- North Carolina: Must I Declare Part-Time Income While Receiving Benefits?
- North Carolina Unemployment: Pension Funds and Unemployment Benefits
- North Carolina Unemployment Rules: UI Benefits and Pensions
- How to Claim Unemployment Benefits in North Carolina
- When the State of North Carolina Accepts Your Unemployment Claim When Can You Start Receiving Your Benefits?
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What happens if you are laid off from your job and you are eligible for a retirement fund annuity provided by your previous employer? How does it affect your eligibility for unemployment benefits? This is a question many of our readers ask. It is no surprise many employers are laying off their older (and better paid) workers and moving those jobs to less costly markets. This is the case of Lee Wilson
I am 57, i have been with my company for 25 years and can receive a pension type fund that was set up by my company thru a financial company. My job is being shifted to another country. I know i will be receiving unemployment insurance payments once my job ends. My wage earnings are $1000 per week.My question is how do i report the pension type fund that i will receive at the first of each month. The amount i will receive from the financial company will be $800 each month. Do i report this fund for the week i receive it when i call to file my unemployment claim.
I’m afraid Mr. Wilson does not understand well the unemployment law in North Carolina when it comes to unemployment benefits and company-set pensions. The news is not good. Mr. Wilson will have to deduct or offset the pension he receives from his unemployment benefits. Why? Well, according to the Federal Unemployment Tax Act states must offset or reduce unemployment benefites against pensions to avoid “double-dipping”. The Federal Unemployment Tax ACT” does not say by how much a state should offset benefit payments or if it still should occur if the pension fund is not paid but simply rolled on to another pension fund.
Most states do not count a pension rollover, where the funds of the pension are deposited into another pension without the beneficiary having access to them, as a payment and do not use it to offset benefits. However, a dozen states, including North Carolina, consider all company-set pensions as a pension payment and use it to offset unemployment benefits.
According to an article by the New York Times, the Labor Department holds the opinion that rollovers should not affect your unemployment benefits, but they maintain it is up to each state to decide how to apply this rule.
What does this mean for Mr. Wilson? Well, he should take his case the Department of Employment Security of North Carolina, and fight for unemployment benefits without a deduction. However, under current rules he should divide his annual pension amount, divide it by the number of weeks in the year and declare this weekly amount when filing for unemployment benefits. Sadly, in this case it will mean that most if not all of Mr. Wilson’s unemployment benefits will be offset by his pension.
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