Several weeks ago I posted a journal entry about the collection of Social Security retirement benefits and unemployment compensation at the same time. After a decade of legislative effort led by the National and State offices of AARP, 46 of 50 states have passed laws eliminating the "Social Security Offset" to unemployment compensation benefits. These changes allow (most of you) to collect full Social Security and unemployment compensation at the same time.
Unfortunately, the tide may be turning the other way. A number of states have laws that reinstitute the offset if the available state unemployment funds falls below a safe funding level. During 2009, the State of Virginia's unemployment funding fell far below their "triggering" level and The Virginia Employment Commission (VEC) reinstituted the Social Security offset as of January 9, 2010. Unemployment benefits paid to Social Security retirement income recipients will be reduced by $.50 for every $1.00 of Social Security income. In many cases, this will mean that unemployment payments will be fall dramatically or even to zero!
To make matters worse, until the VEC can implement new systems and procedures, the unemployment benefits to most Social Security receipients have been totally suspended. The state promises to act quickly to put new controls in place and restore unemployment payments less any offset. The bottom line is that those of you in Virginia receiving both Social Security and unemployment compensation got minimal notice of the suspension and future reduction of your unemployment benefits. This came as an unexpected shock to most people already slapped with job loss.
I will be compiling a list of other states with such funding "triggers" that could lead to the reinstitution of a Social Security offset so others may at least have the benefit of more notice. Be strong - Bob Skladany
(The original journal posting)
I can't get this message out often enough. You are permitted to collect both unemployment beneifts and Social Security retirement income in all states except LA, UT, IL and for now, SD. SD has approved simultaneous collection but has no funds available. As important and frequent a question as this is, its not always plainly explained on state unemployment website. Do you have any questions about unemployment benefits? Go to my article archive or cut and paste this lnk into your browser to get information for your state -http://www.servicelocator.org/OWSLinks.asp
Bob Skladany