unemployment and pension roll over

[Dznypal]

I started a thread about unemployment a few weeks ago someone sent me a very informative link which I read through

in reading this I have another question--it asks about getting pension payments or a lump sum or roll over

I am getting a rollover amount of my pension--now I m hoping I wont denied unemployment because of this

this money is to be used for when Im old enough to retirement and get SS not to live off of since on my papers it says I was let go due to job elimanation/re organization not retiring


Im getting to the point Ill probably get denied this for some loop hole but just wondering if anyone had any experience with this (getting a roll over) and unemployment I dont know what getting a pension roll over has to do with getting laid off from a job

just like a few yrs ago my DH company closed --he was working full time during the day and went to school at night--when he went for unploy he was denied since he wasnt available full time first shift-(since the com closed he went to school full time just to get it done) which was a bunch of horse pucky--he could still have worked at night--that is if anyone would hire him!!!--now thats all been changed nice

thanks for any other help or tips on this

 

[afan]

You should probably ask the unemployment office for your state. They should have a number to call and better able to answer your question.

 

[starry_solo]

Agreed with PP. Also, it might be a good idea to delay taking the pension until unemployment runs out.

Unemployment won't be more than $200-400/week, depending on want OP makes.

 

[QueenIsabella]

If the pension is a rollover, shouldn't it be rolling into an IRA? If so, you wouldn't actually touch the money--the check has to be written a certain way, so it goes directly into the IRA. You don't want a check made out directly to you--that would be a distribution, and subject you to taxes, on top of potential problems with your unemployment.

Honestly, though, you really need to talk to a financial planner or someone more familiar with the workings in your particular state. While people here are well-meaning, it's no substitute for professional advice. Especially because you seem to be in a tricky position--laid off, thisclose to retirement.

 

[Mackenzie Click-Mickelson]

When I was laid off (no fault of my own) I had two choices since the pension amount was under $5,000 (in my case just under)..I could either get a large check or have them automatically roll it over to an IRA for me. If I didn't respond within X number of days they assumed I wanted a roll over and that's what I did. The pension was different at our company because it was actually something they set up when you were hired and was not something you could touch because they had already started using 401k's in place of pensions. It really was never even discussed.

Because I took the pension as a roll over the presence of it had no bearing on the amount wasn't actually given to me. Had I taken it as a large payment they would have calculated that amount into my unemployement payments since I had received outside money.

ETA: Technically I have a 401k (which has some IRA and RothIRA in it) through my past company AND a pension that was rolled over to an IRA.

 

[Mackenzie Click-Mickelson]

Unemployment won't be more than $200-400/week, depending on want OP makes.

eh..I wouldn't say any amounts like that because it really depends on how your state calculates your unemployment and factors that go into it. For my state it was a set percentage based on my pay however if you were receiving money from pensions, stocks, money from a job, etc that was taken into account.

 

[starry_solo]

eh..I wouldn't say any amounts like that because it really depends on how your state calculates your unemployment and factors that go into it. For my state it was a set percentage based on my pay however if you were receiving money from pensions, stocks, money from a job, etc that was taken into account.

Except OP's state (which OP told us in her prior post) is WI and that was based on that state's unemployment website:
https://dwd.wisconsin.gov/uiben/computing_benefit_entitlement.htm#wbr

WEEKLY BENEFIT RATE (WBR):
Weekly Benefit Rate Calculator

The weekly amount of unemployment benefits you are paid when you have no wages or other income during the week. It is 4% of the total high quarter wages from all covered employment. The maximum and minimum benefit rates are determined by UI law. The minimum WBR is $54, requiring high quarter earnings of $1,350; and the maximum WBR is $370, requiring high quarter earnings of $9,250.

The "Weekly Benefit Rate Chart" is a listing of all the weekly benefit rates and the amount of high quarter wages needed for each rate. This chart is available on-line at http://dwd.wisconsin.gov/uiben/handbook/pdf/wbrchart.pdf or by calling one of the information/assistance numbers on the back of this handbook.

I was on my phone when I originally responded so couldn't copy & paste like I can on a computer. But I remembered the max being less than $400

 

[Mackenzie Click-Mickelson]

Except OP's state (which OP told us in her prior post) is WI and that was based on that state's unemployment website:
https://dwd.wisconsin.gov/uiben/computing_benefit_entitlement.htm#wbr

WEEKLY BENEFIT RATE (WBR):
Weekly Benefit Rate Calculator

The weekly amount of unemployment benefits you are paid when you have no wages or other income during the week. It is 4% of the total high quarter wages from all covered employment. The maximum and minimum benefit rates are determined by UI law. The minimum WBR is $54, requiring high quarter earnings of $1,350; and the maximum WBR is $370, requiring high quarter earnings of $9,250.

The "Weekly Benefit Rate Chart" is a listing of all the weekly benefit rates and the amount of high quarter wages needed for each rate. This chart is available on-line at http://dwd.wisconsin.gov/uiben/handbook/pdf/wbrchart.pdf or by calling one of the information/assistance numbers on the back of this handbook.

I was on my phone when I originally responded so couldn't copy & paste like I can on a computer. But I remembered the max being less than $400

That's really good information. But like others had pointed out it would depend on the OP's state. In your comment it wasn't specific if the $200-$400 was based specifically on the OP's state rules or a general estimate so it was left open. A lot of DISers pull from their own experience, myself included, which is why I responded with it depends on how your state calculates though I'm glad you posted more of the information available.

 

[SMD]

That's really good information. But like others had pointed out it would depend on the OP's state. In your comment it wasn't specific if the $200-$400 was based specifically on the OP's state rules or a general estimate so it was left open. A lot of DISers pull from their own experience, myself included, which is why I responded with it depends on how your state calculates though I'm glad you posted more of the information available.

She says the state is Wisconsin, or WI. But this is the 3rd thread the OP has started about this, and at this point she really needs to contact the state UI agency to ask these questions. No one online will know the answer to anyone's specific situation.

 

[PlutoPony]

Your pension shouldn't have any bearing on unemployment unless it's paid out to you directly. I assume you're rolling it into something like an IRA or some qualifying account as opposed to just having the check made to you and putting into savings....Obviously check with authorities in your state though, unemployment is very state specific

 

[starry_solo]

She says the state is Wisconsin, or WI. But this is the 3rd thread the OP has started about this, and at this point she really needs to contact the state UI agency to ask these questions. No one online will know the answer to anyone's specific situation.

^^This exactly. I'm not sure why OP doesn't just start the unemployment claim process and then answer whatever questions the UI office asks regarding severance pay, pension, etc.

 

[laceltris3]

Another thing to consider is that it may not be best to roll the pension over at all, if it is a choice. It depends on the terms of your plan. I have left money in a pension plan because it was guaranteed 4% annual return, and was guaranteed by the PBGC. While in theory I could have made more in equities, you cannot make 4% risk free guaranteed in any other investment. I consider that money to be a part of my bond allocation, which means that my other accounts may have a higher % of equities than I would otherwise. The Great Recession greatly changed the risk analysis, as before that the advice was generally that of course you can do better investing in the market on your own.

 

[Mackenzie Click-Mickelson]

She says the state is Wisconsin, or WI. But this is the 3rd thread the OP has started about this, and at this point she really needs to contact the state UI agency to ask these questions. No one online will know the answer to anyone's specific situation.

That I do agree with. The paperwork,if the process has already been started, should state everything the OP needs to know and if anything is still unknown I'm sure the answer could be found by calling.

 

[tvguy]

I can't see how rolling over into an IRA could impact unemployment.

 

[Anthony1971]

you should have been given several choices with your pension however depending on the rules of your company-- you can usually roll it over to your companies 401K, roll it over to an IRA, Leave it alone or be sent a check minus taxes plus you will likely owe a 10% penalty for early withdrawal. Roll over to your company 401K and leaving it alone are based on company rules and usually have a limit set as in if under say 5,000. This is something you need to ask your HR department about... Rolling it over means it will go into another retirement account and will have no effect on your income... A distribution partial or full will be counted as income how or if it will effect unemployment benefits? but your HR Dept. will have answers to that.

 

[Dznypal]

thanks for all the great advice I feel alittle more at ease with this

I have an IRA set up--and Im having both the pension and 403B checks directly to them--

I was worried with unemploy that when they find out I was entitled to all this money ( well its not all the much)

that they would expect me to live off of that until either I find another job or SS starts

thanks again this is all so new to me

 

[manning]

thanks for all the great advice I feel alittle more at ease with this

I have an IRA set up--and Im having both the pension and 403B checks directly to them--

I was worried with unemploy that when they find out I was entitled to all this money ( well its not all the much)

that they would expect me to live off of that until either I find another job or SS starts

thanks again this is all so new to me

Smart move on setting up IRA and directly having it deposited

 

[Dznypal]

thanks for the great link to the PP for the link it was very helpful

the only thing that concerns me while reading through it is when I mentioned about getting a monthly pension or a roll over

Im just afraid that UE will expect me to live on that until SS kicks in next yr--

any yet it mentioned something about SS not being used for income so

Im just wondering now if Ill be able to collect SS next yr when I turn 62--I know it wont be much

so my SS will be lower then UE so would I qualify for UE and SS

sorry if Im over thinking this but both my husband and daughter got "screwed" out of UE when the com they worked for closed and because they were in school part time and worked part time they werent entitaled to any UE which is a crock of do but whatever

so I like to know what Im heading into before hand--

thanks all