Pension Defined

• The New Jersey Department of Labor and Workforce Development specifies what it counts as a pension. The department regards pensions as any traditional pension you receive from an employer, a 401k plan or some other employer-sponsored retirement plan. If you receive payments from Social Security, this is counted differently. The department does not use Social Security payments to determine eligibility for unemployment insurance and your benefit isn't reduced when receiving these payments.
  
  

No Contribution

• When your employer makes no contribution to your pension, then the New Jersey Department of Labor and Workforce Development does not reduce your unemployment benefit payments. Because these payments are ignored when determining eligibility, you'll have the most success cashing in your retirement to supplement your unemployment payments in paying your monthly expenses.
  
  

Employer Contribution

• When employers are making contributions to your pension, things get tricky. If you and your employer both contribute to your pension, then your benefits are reduced by 50 percent of your weekly unemployment benefit amount when you cash in your retirement plan. If your employer contributed 100 percent to your pension, your unemployment are reduced by 100 percent of your weekly pension benefit amount.
  
  

Overpayment

• If you receive unemployment insurance benefits when you're not supposed to, then the state will make you repay the benefits. If you try to claim weekly benefits, for example, when your employer has made contributions to your pension, and you're successful in getting your full benefit payment, don't accept this money. It may be tempting to take the full benefit amount. However, when the state discovers its error, it will notify you and expect you to return the money.