600 - Effect of retirement payments.
§ 600. Effect of retirement payments. 1. Reduction of benefit rate. If a claimant retires or is retired from employment by an employer and, due to such retirement, is receiving a pension or retirement payment under a plan financed in whole or in part by such employer, such claimant's benefit rate for four effective days otherwise applicable under subdivision seven of section five hundred ninety shall be reduced as hereinafter provided. 2. Application. The reduction shall apply only to benefits which when paid will be chargeable to the account of the employer who provided the pension or retirement benefit. 3. Amount of reduction. If the pension or retirement payment is made under a plan to which the employer is the sole contributor, the claimant's benefit rate shall be reduced by the largest number of whole dollars which is not more than the prorated weekly amount of his pension or retirement payment under such plan. If the pension or retirement payment is made under a plan to which the employer is not the sole contributor, the claimant's benefit rate shall be reduced by the largest number of whole dollars which is not more than one-half of the prorated weekly amount of his pension or retirement payments under such plan, but no reduction shall apply if the claimant demonstrates that the employer contributed less than fifty per centum to the plan. 4. Reduction equal to benefit rate. If the amount to be deducted from a claimant's benefit rate equals or exceeds such rate, he shall be ineligible to receive any benefits which if paid would be chargeable to the employer involved in the pension or retirement plan, but any benefits which would in the absence of this section be chargeable to the accounts of other employers shall be payable to the claimant. 5. Reduction not established. If, at the time benefits are payable, it has not been established that the claimant will be receiving such pension or retirement payment, benefits due shall be paid without a reduction, subject to review within the period and under the conditions as provided in subdivisions three and four of section five hundred ninety-seven with respect to retroactive payment of remuneration. 6. Limitation. For the purposes of this section, the terms "pension or retirement payment" and "governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment which is based on previous work" shall not include payments made from a qualified trust to an eligible retirement plan under the terms and conditions specified in section four hundred two of the internal revenue code for federal income tax purposes, such payments commonly known as eligible rollover distributions. 7. Alternative condition. (a) When a reduction for retirement payments is required by the federal unemployment tax act as a condition for full tax credit, in which event the provisions of subdivisions one, two, three, four and five of this section shall not be operative, the benefit rate of a claimant who is receiving a governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment which is based on his previous work, shall be reduced as hereinafter provided, if such payment is made under a plan maintained or contributed to by his base period employer and, except for payments made under the social security act or the railroad retirement act of 1974, the claimant's employment with, or remuneration from, such employer after the beginning of the base period affected his eligibility for, or increased the amount of, such pension, retirement or retired pay, annuity, or other similar periodic payment. (b) If the claimant made no contribution for the pension, retirement or retired pay, annuity, or other similar periodic payment, his benefit rate shall be reduced by the largest number of whole dollars which isnot more than the pro-rated weekly amount of such payment. If the claimant was the sole contributor for the pension, retirement or retired pay, annuity, or other similar periodic payment, no reduction shall apply. If the claimant's contributions for the pension, retirement or retired pay, annuity, or other similar periodic payment were less than one hundred per centum, the commissioner shall determine the amount of the reduction by taking into account the claimant's contributions in a manner consistent with the federal unemployment tax act. (c) If, at the time benefits are payable, it has not been established that the claimant will be receiving such pension, retirement or retired pay, annuity or other payment, benefits due shall be paid without a reduction, subject to review within the period and under the conditions as provided in subdivisions three and four of section five hundred ninety-seven with respect to retroactive payment of remuneration.