Colorado Eligibility

• According to Colorado's Department of Labor & Employment, the state's unemployment insurance program is only for workers who lose their jobs "through no fault of their own." This is similar to unemployment insurance regulations in most other states. It means that Colorado retirees, whether they retire as planned or voluntarily accept early retirement packages or buyouts from their employers, do not become eligible for unemployment benefits as a direct result of retirement. Colorado's unemployment insurance program receives all of its funding from employers, who also pay into the retirement savings plans and pension funds that retired workers can use for income during retirement.
  
  

Becoming Eligible

• Only workers who lose their jobs due to layoffs or business closures will be able to receive Colorado unemployment benefits. This means that retirees who take on new jobs after retiring from one company may still become eligible for unemployment benefits if they first receive new jobs, then lose those jobs through no fault of their own. However, if you lose a full- or part-time job that you began after retirement, your Colorado unemployment benefits will only be based on your income level from the new job, not the job you retired from. In addition, to receive benefits you must continue to seek work and accept any reasonable job offer. Permanent retirement with no plans to work again disqualifies you from any Colorado unemployment benefit.
  
  

Retirees as Contractors

• Retirees in Colorado can also accept jobs as independent contractors, which makes them eligible for unemployment benefits if they form LLCs, or limited liability companies, and pay unemployment taxes as employers. For example, the Denver Public Schools district has a program for contracting with retirees who have LLC status, contingent on the retiree submitting state unemployment taxes, along with state worker's compensation taxes and federal taxes. Retirees who serve as independent contractors and lose their jobs must meet the same eligibility guidelines as other workers to receive state unemployment benefits.
  
  

Options for Retirees

• Since retirement often means that a worker stops seeking work, the majority or retirees in Colorado are ineligible for unemployment benefits. Even someone who loses his job through no fault of his own prior to planning to retire, but later decides to stop seeking work, becomes ineligible for benefits. For retirees, Colorado participates in federal Medicare to provide health insurance. The state also offers PERA, or the Public Employees Retirement Association, to supply state-funded benefits to retired public employees.