Two issues: Correct – she cannot get unemployment from from a job at a company where she is receiving a pension. Also correct: She COULD get unemployment based on loss of that second job. If they call you for an interview, remind them of this. She should NOT have to pay back the benefits she received. But they are all uninformed idiots there! So you may need to threaten either the media or a lawsuit. I’m willing to be the “media”!