Certain types of other income may delay or reduce the weekly benefit amount; however, these types of other income do not reduce the maximum amount of benefits. If applicants have applied for, or are receiving, any of the following types of other income, it must be reported to the Minnesota Unemployment Insurance (UI) Program.

Holiday Pay: 55 percent is deducted from the weekly benefit payment during the week of the holiday.

Sick Pay: 100 percent is deducted from the weekly benefit payment.

Pension Pay:

• Base Period Employer: Pension payments from a fund, including a 401K, paid into by the applicant’s base period employer are 100 percent deductible, even if the employer made only a small contribution to the fund.
• Non-Base Period Employer: A pension payment from a past employer that is no longer in the applicant’s base period is not deductible.
• Military Employer: Military pensions are 100 percent deductible if the applicant has federal military or federal civilian employment in the base period. Veterans Administration benefits are not deductible.

A lump sum payment does not affect the unemployment benefit payment if the lump sum payment is immediately deposited (rolled over) into a qualified pension plan or account. Taking a lump sum payment makes the applicant ineligible for the number of weeks the amount represents.

Vacation Pay: 100 percent is deducted from the weekly benefit payment unless the applicant is permanently separated from the employment, in which case it does not affect benefits.

Severance Pay and Wages in Lieu of Notice: 100 percent is deducted from the weekly benefit payment. After separation from employment, applicants are ineligible for unemployment benefits for the number of weeks their severance payment represents.

Social Security Retirement: If the social security claim for old age benefits is effective:

• before the start of the base period, the social security payment does not affect unemployment benefit payments.
• after the start of the base period, 50 percent of the applicant’s weekly social security amount is deducted from the benefit payment.

Disability Benefits: If the social security disability claim is effective:

• before the applicant’s employment in the base period, the social security payment does not affect unemployment benefit payment.
• after the applicant’s employment in the base period, 50 percent of the current or potential social security disability benefit is deducted from the benefit payment. Applicants must provide medical evidence showing ability to work.

Loss of Wage Benefits under Workers’ Compensation or Other Disability Insurance: 100 percent is deducted. If there is a loss of wage claim pending, an unemployment benefit payment may be paid if the applicant is seeking some type of available work and able to do that work. However, if the applicant later receives loss of wage benefits as a result of the pending claim, there will be an overpayment of unemployment benefits.

Note: Applicants that are totally unable to work or not seeking suitable employment are not eligible to receive unemployment benefits.

Unemployment benefits from another state, railroad, or federal program must be reported.

The following types of income are not deducted:

• investment income (including personal IRAs)
• jury duty or election judge pay
• rental income from property you own
• spousal support payments
• supplemental social security income and survivor’s benefits
• child support payments paid to you
• income tax and property tax refunds