Pennsylvania Code › Title 34 - LABOR AND INDUSTRY › Part II - Bureau of Employment Security › Subpart A - Unemployment Compensation › Chapter 65 - EMPLOYEE PROVISIONS › Subchapter E - ELIGIBILITY IN CONJUNCTION WITH OTHER PAYMENTS › RETIREMENT PENSIONS AND ANNUITIES › Section 65.102 - Application of the deduction

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
						Unless otherwise excluded from deductibility under this chapter, any pension
						payment received by a claimant with respect to a week for which the claimant
						receives unemployment compensation (UC) benefits shall be deducted from the
						weekly benefit amount otherwise payable to the claimant for that
						week.
(b) Deductible pensions
						include a governmental or other pension, retirement or retired pay, annuity or
						any other similar periodic payment which is made under a plan maintained or
						contributed to by the claimant's base period or chargeable employer and is
						based on the claimant's previous work.
(c) Similar periodic payments shall include
						all deductible pension payments made on other than a weekly basis which shall
						be prorated into a weekly amount before being deducted from the weekly benefit
						amount payable to the claimant.
(d)
						The Department will not deduct pensions paid under the Social Security Act
						(42 U.S.C.A. §§
													301-1397jj) or the Railroad Retirement
						Act of 1974 (45 U.S.C.A.
						§§
													231-231u), if the
						claimant contributed to the pension in any amount, and will not deduct Social
						Security payments that are not based on the claimant's previous work, such as
						Suppplemental Security Income.
(e)
						If the pension is entirely contributed to by the employer, 100% of the prorated
						weekly amount of the pension will be deducted from the weekly benefit amount
						payable to the claimant.
(f) If the
						pension is contributed to by the individual, in any amount, 50% of the prorated
						weekly amount of the pension will be deducted from the weekly benefit amount
						payable to the claimant.
(g) The
						weekly benefit amount payable to the claimant will not be reduced below zero by
						the prorated weekly amount of the pension.
(h) For any week with respect to which the
						claimant is not receiving but is eligible for a pension, the Department will
						not deduct the prorated weekly amount of the pension from the weekly benefit
						amount payable to the claimant.
(i)
						If, as a result of the claimant's ineligibility to receive a pension payment
						under a pension plan, the claimant receives a payment which represents only a
						return of the claimant's own contributions to the plan and does not include any
						contribution from a base period or chargeable employer, the payment is not a
						pension and will not be deducted from the weekly benefit amount payable to the
						claimant.
(j) The Department will
						not deduct pension payments if the services performed by the individual during
						the base period or the remuneration received for those services from a base
						period or chargeable employer did not affect the individual's eligibility for,
						or increase the amount of, the pension.
(k) The Department will not deduct periodic
						payments which are made under severance agreements, profit sharing arrangements
						or disability plans administered by a union, employer, workers' compensation
						carrier, insurance company or the Veterans Administration, unless the payments
						are based on retirement and fulfill all other prerequisites specified in this
						chapter.
(l) The Department will
						not deduct lump sum pension payments which represent the transfer of "eligible
						rollover distributions" from a "qualified trust" to an "eligible retirement
						plan," as those terms are defined in section 402(c) of the Internal Revenue
						Code (IRC) (26 U.S.C.A.
						§
													402(c)).
(1) If all of the requirements of section
						402(c) of the IRC are met, including the transfer of the payments into an
						"eligible retirement plan" within 60 days of receipt by the individual, those
						payments do not represent a payment to the individual for the purposes of
						retirement and are not received by the individual under section 404(d) of the
						law (43 P. S. §
														804(d)) and section
						3304(a)(15) of the Federal Unemployment Tax Act (26 U.S.C.A. §
														3304(a)(15))
						(FUTA).
(2) If a distribution, or
						any part thereof, does not meet the requirements of section 402(c) of the IRC,
						the Department will deduct the prorated weekly amount of that portion of the
						lump sum payment which is received by the claimant in accordance with §
													65.108 (relating to rules of
						attribution).
(3) If a claimant
						does not roll over the entire lump sum into an eligible retirement plan, as set
						forth in paragraph (1), the Department will determine the amount to be deducted
						from the claimant's weekly benefit amount by dividing the amount of the lump
						sum payment that is received by the claimant by the total amount the claimant
						could have received had the claimant opted to take the entire lump sum
						available to the claimant. That quotient represents the deductible share of the
						lump sum pension amount received by the claimant. The claimant's unreduced
						monthly pension is the amount the claimant could have received each month had
						the claimant opted to take periodic payments in lieu of a lump sum. The
						Department will calculate the deductible portion of that unreduced monthly
						amount by multiplying it by the quotient representing the deductible share of
						the lump sum which is received by the claimant. Using the deductible amount of
						that monthly pension, the Department will compute the prorated weekly
						deductible amount in accordance with § 65.108.
(4) If a claimant presents documented proof
						to the Department that the claimant has rolled over a portion of a deductible
						lump sum payment into an eligible retirement plan within 60 days, so that all
						or some of that lump sum payment is not subject to Federal Income Tax, the
						Department will credit the claimant for any amount deducted from the claimant's
						UC benefits which is properly exempt from deduction because it is attributable
						to the transfer of the funds into an eligible retirement
						plan.