In his first public appearance in at least a year, Sandusky wore an orange prison uniform as he spoke during a video conference before the State Employees Retirement System in Harrisburg, the Philadelphia Inquirer reported.
Sandusky's wife, Dottie, also attended the hearing.
The state stripped him of his pension -- reported to be $4,900 a month -- after he was convicted in 2012 of sex abuse charges.
The board wasn't expected to make a decision immediately, the Inquirer said. The hearing officer overseeing the case will take arguments and then make a recommendation to the pension board.
Sandusky is serving 30 to 60 years in prison. He was convicted last year of 45 counts of child sexual abuse.