1. (1) As used in this section, "retirement benefits" means any retirement benefits, Social Security, pension, or disability retirement pay.

2. (2) Except as provided in Subsection R994-401-203(3), a claimant's WBA will be reduced by 100% of any retirement benefits received by the claimant. The payment of retirement benefits must satisfy each of the following conditions.

   1. (a) Base Period Employer Plan.

      1. (i) Retirement benefits must be from a plan contributed to by a base period employer.
      2. (ii) Social Security payments are counted if a base period employer contributed to Social Security even if the Social Security payment is not based on employment during the base period.

   2. (b) Basis for Receipt of Retirement Benefits.

      1. (i) The claimant:

         1. (A) must receive retirement benefits based on prior employment; and
         2. (B) qualify for retirement benefits because of any combination of the following:
         3. (I) age;
         4. (II) length of service; or
         5. (III) disability, if the disability benefits are based, at least in part, on length of service.

      2. (ii) A claimant's WBA will not be reduced by the claimant's receipt of:

         1. (A) benefits from asavings plan, such as a 401(k) or IRA;
         2. (B) workers' compensation for:
         3. (I) temporary disability; or
         4. (II) black lung disability;
         5. (C) benefits from the Department of Veterans Affairs;
         6. (D) benefits received as a spouse or beneficiary; or
         7. (E) benefits payable to the claimant's former spouse if the paying entity pays:
         8. (I) the former spouse directly; and
         9. (II) pursuant to court order or a signed, stipulated agreement in accordance with the law.

   3. (c) Periodic Payments.

      Retirement benefits must be paid in periodic payments and not in a lump sum. Lump sum payments, even if drawn from the employer's contributions to a fund established for retirement payments, are not treated as severance pay under Subsection 35A-4-405(7).

   4. (d) Payable During the Benefit Year.

      1. (i) If the claimant subsequently receives a retroactive payment of retirement benefits which would have resulted in a reduction of unemployment insurance benefits, an overpayment will be established. The period of time the payment represents, not the time of the receipt, is the determining factor.
      2. (ii) An assumption that a claimant is entitled to receive retirement benefits, even if correct, is not a sufficient basis to recompute the WBA.

      3. (iii) A reduction of the claimant's WBA will be made if the claimant:

         1. (A) has applied for retirement benefits;
         2. (B) expects to be determined eligible for a specific amount attributable to weeks when unemployment insurance benefits are payable; and
         3. (C) is only awaiting receipt of retirement benefits.

      Retirement benefits must be payable during the benefit year. Except as provided in Subsection (iii), a claimant's WBA will not be reduced if the claimant is eligible for, but not receiving, retirement income.

3. (3) For claims with an effective date:

   1. (a) on or after July 4, 2004, and on or before December 11, 2010, the claimant's WBA will be reduced by 50% for Social Security retirement benefits received by the claimant; and
   2. (b) on or after December 12, 2010, the claimant's WBA will not be reduced for Social Security retirement benefits.
4. (4) A claimant who may be eligible for retirement benefits, but does not apply until after unemployment insurance benefits have been paid, will be at fault for any overpayment resulting from a retroactive payment of retirement benefits.
5. (5) The formula for recomputation of the MBA in the event a claimant begins receiving retirement income after the beginning of the benefit year is found in Subsection 35A-4-401(2)(d). The recomputation is effective with the first full calendar week in which the claimant is eligible to receive applicable retirement benefits or adjustments to those benefits.

KEY: unemployment compensation, benefits

Date of Last Change: April 21, 2022

Notice of Continuation: June 9, 2022

Authorizing, and Implemented or Interpreted Law: 35A-4-401(1); 35A-4-401(2); 35A-4-401(3); 35A-4-401(6)