43. Persons Receiving Social Security Disability or Retirement Benefits, or a Pension

In order to qualify for UI benefits, an individual must be “capable of, available and actively seeking work.” G.L. c. 151A, § 24(b). (See Question 8).

Social Security Disability Payments

The Social Security Administration has made clear that the mere fact that a person is receiving Social Security Disability benefits (as distinguished from Retirement benefits) does not automatically result in disqualification for UI benefits. Social Security Forum, V. 20, No. 11, Memorandum to Regional Chief Justices from Chief Judge F. Cristaudo, Receipt of Unemployment Insurance Benefits by Claimant Applying for Disability Benefits, 11/15/2006, available at https://www.masslegalservices.org/node/37847. A DUA memorandum implementing this SSA guidance is available at https://www.masslegalservices.org/node/30888.

A claimant receiving SSI and SSDI who provides medical documentation that the claimant can work will not be disqualified. AH c. 4, 2C.5&6. (See Appendix Q for the information DUA requests in order to make this determination). Only if the documentation indicates that the claimant is unable to work on even a part-time basis with a reasonable accommodation should DUA issue the Notice of Disqualification.

Claimants receiving SSI or SSDI while working part time must document the number of hours worked and the number of hours that they are capable of working. A claimant who works at least 15 hours per week would not be considered unemployed and would be subject to disqualification under §§ 1(r) and 29(b) of G.L. c. 151A.

In all instances, no presumption should be made that a claimant is disqualified without determining whether or not she can work full time or part time, with or without reasonable accommodation, or without giving the claimant a reasonable opportunity to provide medical documentation. 

Social Security Retirement Benefits

Receipt of Social Security Retirement benefits does not cause any financial offset in UI benefits. St. 2006, c. 123, §§ 67, 68, amending G.L. c. 151A, § 29(d)(6) to eliminate financial offset. Other nondeductible benefits include those from IRA Plans, Keough Plans, Railroad Retirement, and any withdrawal of Pension Contributions.

Pension and Other Retirement Benefits

Receipt of pension or other retirement benefits from a base-period employer may affect the amount of UI benefits but does not affect UI eligibility as long as the individual is able, available, and actively seeking work. A claimant who receives a pension or retirement benefit that is financed wholly by a base-period employer will have her weekly UI benefits reduced by 100 percent; whereas, if the employee makes any contribution, the UI benefits are reduced by 50 percent of the weekly retirement benefit. Lynch v. Dir. of the Div. of Emp't Sec., 372 Mass. 864 (1977); BR-2015465 (5/19/14). No deduction is made if the pension is from a source other than the base-period employer, the lump-sum payment was made prior to the base period, or the pension is solely funded by the employee. G.L. c. 151A, § 29(d).