Can someone explain the differences in what you are offered if you take the VRP vs what you get if laid off?
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@ek they are required to if you finished 2025 because it’s considered salary. The only time I’ve seen it prorated is a JE in Q4. My manager told us that people who took VRP or who are eliminated would be eligible for bonus but not merit, which makes sense because merit is always effective 4/1/xx and these cuts are supposed to be completed by 4/1.
@bs I was JE and still got the two weeks for every year and offered subsudarized benefits as well. Came back at 12.00 less an hour because was not eligible for Medicare once the benefits ran out. I declined the VRP and if company would be very foolish to JE the same people that declined it due to age discrimination suits could appear.
Over time the JE package has changed. I was released in March of 24. At that time Cobra was subsidized through the severance period. Not surprised to hear they are no longer providing that benefit.
@bs why would you be at the top of the list for JE? Your severance would be a lot higher than someone who joined up 2 years ago.
The better question is why would you want to ultimately stay at such a company. Thinking the VRP comes with non-compete terms. If I needed to keep working, I'd rather take the chance of being JE'd so I could at least get out there and look for work.
@ev Correct - it is currently capped at 52 weeks regardless of years of service.
@d3 Is that accurate that severance pay is capped at one year?? I’ve been at Cigna for 30 years and I was counting on getting paid for 60 weeks if I’m laid off. But you’re saying I would only get paid for 52 weeks?
@d2 I agree with everything you mentioned, but one thing to mention
"The only caveat is that you must leave the account with Empower. "
They must keep the money in the 401k in Empower to apply the rule of 55 for withdrawals. Don't take the option to roll into an Empower IRA. If they were to move the 401k money to an IRA, even within Empower, the rule of 55 no longer applies and reverts to the standard 59 1/2 for penalty free withdrawals.
@d3, I don't recall subsidized COBRA with a standard severance package, only with the VRP.
With a JE, will cigna pay the 2025 bonus if terminated before bonus payout?
It's really about how much your state gives for unemployment benefits. Look at your state payouts and look at the max benefit for unemployment. Remember you pay taxes on unemployment as well.
@bs read the hr policies. Educate yourself. The severance package is two weeks pay for each year of service capped at one year. The medical insurance is subsidized just like vrp. Getting a vrp offer is age dry, not a sign you are being pushed out. I called HR and verified everything I am typing here. The benefit to a job elimination is a chance to file unemployment
@cb the statement “ If you do not accept the buyout you give away the 2 weeks for every 1 year of service severance, and will instead only be eligible for whatever unemployment benefits your state of residence offers you.” seems like it is incorrect in what Cigna currently has. They have 2 weeks for every full year worked at the moment. Next year perhaps not as robust - or maybe not at all. But CURRENTLY those electing to pass on the VRP and take their chances would be eligible for the standard severance package. Also if you take the VRP you may be ineligible for your states unemployment. This would affect those closer to age 55 vs 65 and up. The COBRA may make it more beneficial for some. Not everyone has the same financial foothold and must decide what is best for themselves. This is nothing “special” outside of the COBRA subsidies. News flash - if you are 55+ and are no longer employed from that employer FOR ANY REASON you can still access your 401k as if you were 59 1/2. The only caveat is that you must leave the account with Empower. Google Rule of 55 as it pertains to 401k and speak to a financial advisor.
If a company doesn’t offer severance packages, most likely the company is in really bad shape, probably on the way to bankruptcy. Any decent company would offer severance packages. I think the legal term is ” severance agreement”. If you strongly believe your layoff in unfair or unlawful (like due to illegal offshoring), you can refuse to sign, and hire a lawyer to fight for your rights!
@cb Why Employers Offer Severance Packages?
To manage workforce reductions (layoffs, mergers).
To secure legal releases, preventing lawsuits.
To maintain goodwill and protect company reputation.
@cb naive! without severance package, people can find tons of reasons to sue the company!
@bx According to everything I read. VRP offers Subsidized Cobra insurance in addition to severance.
Job Elimination - just gives you the severance if you're eligible for it.
Getting fired for cause - probably looking at getting nothing.
It's a big corp. They're shedding a ton of people. It comes down to whether you think the VRP is better than being laid off.
@bx why would you think this is incorrect? You do realize Cigna is a private sector employer correct? You do realize Cigna employees are not unionized correct? So assuming you do realize both of those critical facts, you then must be able to logically deduce the fact that Cigna is not required to provide ANY buyout whatsoever. They can simply lay you off and direct you straight to your state's local unemployment office. I am shocked to believe that so many people out there truly believe Cigna is REQUIRED to provide you a severance offer. Unreal.
@bs you missed the point! Laid off people will get severance packages, plus the eligibility for unemployment benefits in the future if they are still unemployed when the severance pay runs out.
@bs Are you implying that if you decline the VRP you will still get JEd but are no linger eligible for a “package”. That seems incorrect…
This is simple. Anyone who doesn't accept the voluntary buyout is a fool. Why? Simple, you have already been identified as someone the company WILL cut. If you do not accept the buyout you give away the 2 weeks for every 1 year of service severance, and will instead only be eligible for whatever unemployment benefits your state of residence offers you. Sorry to be the bearer of bad news, but if you have been offered the buyout, you are losing your job one way or another. The company isn't going to suddenly have a magical change of heart and keep you if you decline the buyout. I cannot believe people are even giving consideration to not accepting it.
Not necessarily. Unemployment rules are determined by states. Some states don’t pay UE during severance period.
JE - you can also collect unemployment, but if you have stock it won’t vest.
@ae
And if you are over 65, COBRA would be secondary to Medicare, so there is no point to have it.
Subsidized COBRA