To answer your question: yes you can collect unemployment if you are retired. If you are collecting DOD retirement, that is considered income and will offset your unemployment rate (won't be very much money... if any), but you are correct, VA disability compensation is not considered as reportable income when it pertains to unemployment. Just provide the office with your VA info and let them know you collect VA compensation vice DOD retirement, and you should receive the full amount. I know this because i am doing it myself in North Carolina. Now, every state has their own rules and maximum pay rate, but I believe the VA disability compensation rule applies to most. Talk to a represenative from your state unemployment office and they will guide you through the process. Good luck!