New Law Rolls Back Restrictions for Older Residents Seeking Jobless Benefits

(KNSI) — A new law taking effect in Minnesota on Sunday removes requirements restricting Social Security recipients from receiving full jobless benefits.

State lawmakers have repealed the requirement, paving the way for individuals living on tight budgets to have an extra cushion if they lose their “post-retirement” job.
It reduced by 50% unemployment aid for laid-off workers who, within the first year, either received or started to apply for Social Security.

Kate Schaefers of A-A-R-P Minnesota says without the offset obligation, it had a profound effect on older workers as the pandemic began to take shape. She points to testimony from a man who had worked part-time in retail and lost his job but had no unemployment benefits to supplement his income.

“He told us that he cut back on expenses, including his medication, because he couldn’t afford them living just off of his Social Security check,” Schaefers recounted.

Schaefers says the rollback will benefit the growing number of older adults who can’t afford to solely rely on their pension in the face of rising consumer costs.

“This is a key part of their retirement … continued work,” Schaefers explained. “This is going to benefit them if they get laid off; that they can access those unemployment benefits.”

The benefits amount to nearly $1,600 a month. Sixteen percent of Minnesotans 62 and older receiving Social Security are still in the labor force.

Minnesota was the last state to have the offset requirement.