Apologies if this has been covered before in a prior post. Do we know if severance HAS to be taken as a lump sum vs. having the option to get it in the form of continued regular payments every two weeks until the severance is exhausted? And if the latter IS an option, does medical/dental continue during that time if you don’t take a lump Doem not talking about COBRA, I mean your regular health/dental benefits during the period you’re getting your severance pay every two weeks in the “long haul” format. Is that even a possibility?
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You keep all benefits EXCEPT the ability to make a 401K contribution and have the disability insurance while on salary continuation. Since I am on through part of 2021 I can apply for the 2021 benefits but will be going to Medicaid and Medicaid advantage instead.
They call it "Salary continuation" for a reason. For the whole layoff period, you continue to get all of your salary and benefits, including health insurance.
If you get another job that offers health insurance and your other perks, you can call HR and they will distribute the remainder of your continuation amount in a lump sum.
I was laid off a while back, and can confirm:
- There is no lump sum payout option. (I think there was at one time, which is why some folks swear up and down that it's an option.)
- WF will only pay a lump sum when you tell them you've found another job that is benefits eligible. Note the "benefits eligible" part – you can take a temp gig after the WARN period, and keep getting benefits and regular paychecks from WF, as long as you aren't eligible for healthcare from your new employer. COBRA isn't cheap, so can't think of a reason you'd want to stay on it if your new job offers benefits anyway.
- You'll pay a lot more for COBRA than you are paying for healthcare now. Look at your benefits statement, and add what WF pays for your coverage + what you pay currently to see how much. Wells Fargo does not "cover" your healthcare after the 60 notice period.
you want to avoid the lump sum whenever possible. The reason is that if you don't find another job, your tax bracket will be lower next year when you receive the remainder of the severance. If you take it all as a lump sum now, it could push you into a higher tax bracket for 2020. it really depends on the individual circumstance, but something to consider.
Yes- I didn’t feel like the benefits book clearly covered that piece so I asked the laid off employee. He had the max amount of severance and received benefits, as usual, the entire time. Cobra is pricey so I was happy to hear it.
Thanks ZT! Seems like there’s a couple different ideas on this thread about benefits. From what you’re saying, it sounds like regular benefits (non COBRA) DO in fact continue during your ‘every two week’ payments. That’s an important point, if true.
I asked a person who was laid off last year about the benefits. The benefits were covered, as usual, for the extent of the severance period. If you were to find a job during you severance period, you notify Wells and they end your benefits and issue the remainder of the severance in a lump sum.
Wait until after your notice period is over before starting your new job. Upon starting your new job, you can notify Wells Fargo to get a lump sum payout of your salary continuation (as others have noted).
So does this mean if you find a new job within your 60 day notice period, you still get your severance, in the form of a lump sum Payment on day 61?
The main thing I was wondering about was whether regular (non COBRA) benefits continue every two weeks during your severance or not. Sounds like they don’t, which makes sense that WF would not continue paying that.
If you say that you found a job, then you get a lump sum. Otherwise, it's deposited like normal every two weeks.
I don’t think there is an option to take a lump sum unless you found another job while you are getting the severance then they ll pay out in lump the balance due. I don’t think they pay any benefits while collecting severance pay biweekly. The only Choice is to sign up for Cobra