What is a decent severance package in 2012?

[almost there]

Edison to lay off 730 workers at San Onofre - Los Angeles Times

What would you think these folks would end up with?
Have a couple friends that may be affected.
(Not sure on exact age & yrs)
45 with 20yrs.
50 with 25 yrs.

When asked I didnt have a clue..........

 

[OddGuy]

1-2 weeks per year of service is average for mid-level, up to 4 weeks for executive positions. Most (if not all) states have no mandatory amount, so it's entirely at the company's discretion...in the case of mass layoffs, a lower figure is expected, as the company has to bankroll a large amount, and wouldn't want to carry over the expense into the next fiscal year. If six months remain in the fiscal year, they'll limit the number of packages that exceed that, to stay off the following year's budget.

 

[photoguy]

When my entire group was cut at megacorp in 2010 we received 3 months notice before the layoffs. And then once people left, they received in terms of severance a fixed number of weeks per level (from 6-10 or so I think) + 1 / week per year (2weeks / year after 10 years).

I thought it was pretty generous.

 

[Midpack]

I don't think there's a norm...

 

[almost there]

Agree, just looking for an idea on what it might look like.
Will pass on the above info.
Thanks!

 

[67walkon]

What is this "severance package" you mention?

 

[Retire2013]

6 months of salary (no bonus) for VPs and above where I work. Below VP (also no bonus), it's 2 weeks for each year of service.

 

[Tyro]

DW's employer (former Fortune 500) filed for bankruptcy just after she left. Severence for those remaining is being amortized monthly over 30 years. Usually, anything is better than nothing, but in this case I'm not so sure. What's $20/month going to be worth 20-30 years from now?

 

[FIREd]

At DW's company, severance = one month pay for each year of service is standard.

 

[growing_older]

What happens to pension benefits that they were accruing? With 20-25 years in, these people will never be as close to earning a full pension as they were here.

 

[aaronc879]

What is this "severance package" you mention?

+1

Never worked for a company that gave a severence package to anyone.

 

[pb4uski]

What happens to pension benefits that they were accruing? With 20-25 years in, these people will never be as close to earning a full pension as they were here.

True. Typically pension benefits will be calculated based on years served as if the employee left voluntarily on their severance date - though sometimes the company might provide a small enhancement for employees who leave involuntarily (at the discretion of the company).

 

[slmckenney]

I was recently (Jan 2012) able to leave my former employer with a voluntary severance package - full salary, health, vision and dental continuation - for eighteen months. This after almost thirty years of service and having reached 64 1/2 at the beginning of the year. I count myself very lucky but the point is that they had NEVER in their history given any sort of incentive program to move people out "early" and their willingness to break that precedence was based on a corporate business need to reduce head count, higher salaried employe costs AND long term liabilities (pension projections and such). The 'standard' in this case was overlooked in order to fulfill the 'need.'

 

[Midpack]

6 months of salary (no bonus) for VPs and above where I work. Below VP (also no bonus), it's 2 weeks for each year of service.

The company I retired from it was 1 week for every 2 years of service for salaried employees. OTOH they gave "2 weeks in lieu of notice" and walked you out the door immediately no matter how many years of service to hourly employees. I never agreed with that approach BTW, but the company was owned by a bunch of good old boys...

 

[rodi]

My megacorp has varying packages based on pay grade.

Vast majority gets 1 week/year of service. Minimum 8 weeks (so 8 years or less, you get 8 weeks, at 9 years you get 9 weeks). Max of 26 weeks.

Management types get 2 weeks/year of service, minimum 14 weeks. Still maxes at 26 weeks.

Execs (sr. directors and up) - unpublished but rumored to be 6mo's to 1year, depending on level and years of service.

 

[Texas Proud]

1-2 weeks per year of service is average for mid-level, up to 4 weeks for executive positions. Most (if not all) states have no mandatory amount, so it's entirely at the company's discretion...in the case of mass layoffs, a lower figure is expected, as the company has to bankroll a large amount, and wouldn't want to carry over the expense into the next fiscal year. If six months remain in the fiscal year, they'll limit the number of packages that exceed that, to stay off the following year's budget.

Not correct on the accounting.... once the amount is known, it is all written off immediately.... even if paid over a couple of years...

Agree with the amounts mentioned...

 

[yakers]

AFAIK in the Federal Govt the most you can get, whether one is a secretary or an executive, is $25K.

 

[SumDay]

Where I work, we get 2 weeks per year of service, up to a maximum of 6 months. I've been there 28 years.

 

[KM]

Rumor is DH's employer will be offering a voluntary package next month for an October termination. Historically, it has been 55 and over, 1 week per year of service....he turned 55 this year and has been there 32 years.

He was already planning on retiring in Jan, so he needless to stay he's pretty excited at the possibility of being paid into May instead.

My company also offers 1 weeks per year - but almost always releases based on performance. Nothing is ever offered to the masses.

 

[JakeBrake]

At my Megacorp the severance package I left under was 7% of your annual management base salary for each year of service. The minimum payout was 50% of your annual salary. The maximum payout was 150% of your annual salary. The yearly bonus was prorated as of the day you retired. I forget the minimum number of years service required to qualify for the package.

The retirement pension or lumpsum payment, and health insurance were figured separately per the standard rules in effect at the time.

 

[bssc]

My megacorp has 2 weeks / year of service or 4 week / year for management. My director was displaced last year and got the maximum of 60 weeks.

 

[skyvue]

Edison to lay off 730 workers at San Onofre - Los Angeles Times

What would you think these folks would end up with?
Have a couple friends that may be affected.
(Not sure on exact age & yrs)
45 with 20yrs.
50 with 25 yrs.

When asked I didnt have a clue..........

At my current company I have seen severance packages being offered that were one week of pay for every year of service.