How will EI deduct my pension earning?
The pension amount before deductions is allocated to the period for which it is paid or payable, no matter when or how it is paid. How the pension amount will be allocated varies according to whether it is paid on a periodic basis or as a lump sum. To find out more detail, you may consult Service Canada EI earning chart.
The way EI earning deduction calculates is a much complicated calculation. Briefly speaking, if your total monthly private pension amount is $800, then the earning deduction (50 cents per dollar received) is roughly $400 per month. EI will then use this amount to divide into a weekly amount (roughly divided by 4 weeks) so that’s $100. If your regular EI is $300/week, it will subtract $100 = 200/week regular EI. So the total money you receive in your pocket will be $800 + $200.
Exception to the pension income deduction rule
The only exception when EI processing will not deduct your pension earning is when you have accumulated enough EI insurable hours that occur after your receive your first pension payment while at work. In other word, if you have already been collecting pension while working for about 1 year and then you got laid off, in this case, your pension will not be considered as income for EI benefits deduction.