Significance

• Pennsylvania limits your unemployment compensation to $573 per week. You must call the state's unemployment office or visit their website (see Resources) to determine your weekly benefit amount as no pre-determined calculation exists to determine weekly benefits. You must report any and all pension income you receive. Pennsylvania requires that you report any annuity income and any other income you receive from other retirement accounts.
  
  

Disadvantage

• Any income you receive from any retirement plan reduces your unemployment benefit. If your employer contributed all of the money to your retirement plan, then your unemployment benefits are reduced by 100 percent of the retirement income benefit. If you contributed any money to the retirement account, then your unemployment compensation is reduced by only 50 percent. This results in less income for you.
  
  

Benefit

• Your benefits are not reduced if you take a lump sum payment from your pension or retirement account. This exception is valid if you aren't given the opportunity to receive monthly payments. The benefit to you is that you may keep your retirement savings and still collect unemployment benefits.
  
  

Consideration

• Social Security payments are not counted against you. This means if you're close to retirement, and you need additional income after being laid off, consider filing for your Social Security benefits. You'll receive your full unemployment benefits in addition to your retirement benefits. When your unemployment benefit runs out, you may simply start drawing your retirement benefits.