Laid off, in 60 day period (still employed). Should I proceed w/taking severance or turn in my resignation to get WF medical benefits under retirment plan? (I meet the age + 10 yrs. tenure requirement.)
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What is the number to retire with years of service plus age?
What is ACA? Is that the Marketplace?
Post ID: @saf+1kVsijmf
Same here - $1027.00 per month until the day before I turn 65 when they kick me off. Not sure how it's considered a benefit other than you save the 2% admin fee that you'd pay for Cobra - on the other hand, you get a reasonable part of that back when you do your tax return because it's all out of pocket expense. I would have preferred to be laid off but I got sick of waiting.
@nbf. Retiree coverage removes any WF contribution so you are paying the whole WF group rack rate for coverage.
hmmmmmmmm....
I was under the impression that you had 60 days after severance period to still 'retire'.
ACA is not (and could not be, due to GOP gutting) the same quality as WF offering. The devil is in the details. You might very well be better off w/WF retirement plan vs ACA.
Post ID: @kht+1kVsijmf
Glad to have had a positive outcome from a conversation out here! Good luck!
@ytl, Thank you! I was trying to wait for ten years of service, but it is not worth it from what you have said. You just made my day! :-) I am so thankful I saw your post.
Post ID: @nbf+1kVsijmf.
It’s because WFC no longer supplements part of your premium, once you retire, like they do when you are an employee. WFC shouldn’t really call it a “benefit”. It’s more of an “option”.
ACA doesn’t cover you out of state except for “emergencies”. If you need to go to an urgent care while on vacation, it may or may not pay. Also, on ACA you have to keep your income at a certain level to get subsidies. If you have to sell assets for some reason like to cover an unforeseen expense, it may push you above the subsidized rate and then you would have to pay more for an inferior insurance. I didn’t know all the issues with ACA until I was layed off and had to consider it. Subsidies are based on income and not assets. My income would have been too high so I wasn’t eligible for subsidies. It doesn’t take much to make it too high either.
@ozn, why was the retiree coverage of > $1K so high? I thought it would be what you are paying a month as an employee. Thanks in advance for any help.
Wells Fargo retiree medical IS NOT better than ACA coverage nor is it cheaper. My coverage was $1,088 a month as retiree coverage and $522 a month for the same coverage under COBRA. In this situation I would suggest you keep the severance and it's cheaper (same as you pay now) medical coverage for the full severance period. Then retire at the end of the severance period to get your pension money out or don't retire. Either way this strategy works. You then buy COBRA coverage for 18 months. You can pay for the COBRA coverage with HSA dollars also while still contributing to the HSA to get the tax deduction. After that depending on the number of months to Medicare you can buy ACA coverage or jump on a partner's plan. If you have taxable (IRA, 401K, etc) dollars and non-taxable investments you can use only the already taxed money for living purposes creating an artificially low taxable income for the year you need ACA. You can get significant premium reductions due to your artificially low taxable income that year. ACA doesn't use assets in its calculation of subsidies just taxable income. I am paying $147 a month for the seven months I have until Medicare after using this strategy. Easy peezy.
If you have 10+ years service, even if medical care is expensive I would have to think your displacement salary would more than offset? This is essentially just an algebra question, but you’re the only one who knows enough of the values to replace the letters with numbers.
Isn't medical insurance through WF retirement plan better coverage than ACA? I though I'd heard that. It's not just the premiums, but the quality of coverage
I asked because when I checked into it the cost was over $1000 a month for the UHC plan I currently have.
Post ID: @vvn+1kVsijmf
WFC Retirement Medical cost depends on your state and which Insurance WFC uses for that state. I have United Health Care and it is approx $1150 per month with a $3000 annual deductible.
Seems to me you would be better off to take your Severance Pkg and medical insurance that comes with it, then ACA until you turn 65.
@ffz+1kVsijmf
You can't be laid off AND retire. It's one or the other.
Hope you have other options for health insurance.
Can you negotiate both? Meaning get your severance AND at the end of the severance get the retiree benefit? Or does let letter you received exclude that as an option?