In addition to the many questions surrounding benefits for unemployment, pension questions often arise when an individual is eligible for both. Generally speaking, if a person receives a pension that is included in their unemployment claim, regulations may stipulate that their payments must be reduced by the pro-rated amount of the pension that was paid by the employer. If an employer contributed nothing to a pension (i.e. it was fully funded by the employee), no deductions will be taken from unemployment payments. The treatment of unemployment and pensions can vary in every state. Some states may choose reduce the amount of the pension offset by the amount that the employee contributed towards the pension. In order to be eligible for unemployment benefits, a person must be willing and able to work and must be engaged in the process of actively looking for work. Social Security Retirement benefits have no effect on unemployment benefits.