Just checked my EOI for R3, and the severance payout date is very tight to push until 2021.
Beside playing with date of submission during the 60 days of signing the release, is there any other options to delay the process?
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Correct but you need to leave payroll this month to get RRP in 2021.
Highest tax bracket for 2020 MFJ starts at $613,000.
If you are already in the highest tax bracket it won’t really matter. Your taxes could be higher next year.
Just note if RRP>salary+bonus you may be better off taking severance in 2020 when your income is lower.
Just be sure your RRP payout in 2021 is not larger than your 2020 W2. If so, severance would accrue less tax in 2020.
Severance and lump sum are independent.
Pushing for severance further out (Q1 2021) could effect your final total pension lump sum payout. All depends on interest rates. It's a gamble either way.
Per email fromTR HR the redeployment period is fixed: September 14-October 23.
Sounds like you answered your own question. There could be a number of reasons.
I read somewhere that HR has the option of allowing you to work a bit longer instead of some or all of your vacation payout. Why would anyone do this? Well I might to give an external presentation at a professional society meeting using release-approved company data and the bonus would be then I can be completely sure severance will come in 2021.
Indeed according to TR HR website:
Employee Notification: Sept 9-12
Redeployment period: Sept 14 - Oct 23
Last day on Payroll: Oct 23
However, not sure the redeployment period is fixed as such or the clock will start right away upon notification?
@xeq, you are right and wrong. Check the TR HR website. Last day on payroll is October 23, i.e., you get it in 20121 100%!
R4 folks have nothing to worry about, they will get severance in 2021. As many have calculated, an R3 2021 severance payout is close but should work out as long as you delay each step as long as possible. HR/payroll get little done in December in a normal year due to all their EOY closeouts and if everyone R3 holds their papers as long as possible (and R4 folks speed their paperwork up to get payment ASAP in 2021) then the pipe should be good and clogged so it will all work out I suspect.
Hurricanes.
Round 3
- Notification starting from Sept 7
- 6 weeks redeployment Oct 19 (termination of employment)
- 60 days to sign release Dec 18
- 7 days revocation period 25 Dec
- Severance payment for 2020 (Dec 16)
- next available payroll cycle (2021)
According to the website, the paperwork must be processed by 16 December to be paid in 2020. Since the notifications for R4 come out the week of 19 October and you have 60 days to complete them it is easy to stretch it into 2021.
October 23 is last day on payroll + 60 + 7 = December 29, i.e., the severance payout is January.
I think they still have to give 4 or 6 weeks notice from when they tell you to leave. So here's hoping for the middle of September notification. Also they pay it out on at the next regularly scheduled pay period after they receive your forms... so it could be another 14 days depending on on how you time it.