Thread regarding DST Systems layoffs

I’m pretty sure the severance plan detailed in late March says payment will be one lump sum. Did not say anything about multiple payments as an option.

I can’t answer for 2017, but in previous layoffs, DST let you take the severance payment in installments. I assume this was available to people that who were concerned about managing a lump sum payout, But it also gave you some tax planning tools.

Why do you think people will have an option on how severance will be paid out? Is this an option DST or SS&C has provided to terminated employees in the recent past? I ask because BFDS associates who were laid off in 2017 had no option, it was paid out as a lump sum.

Good 401K info @lqp

The 401-k contributions won’t impact your taxes. What will impact your taxes is the lump sum amount you may be due from severance pay, vacation pay, and maybe even the payment made to help with medical insurance. Since the layoffs, if they happen, will be mid year, you will easily be bumped into higher tax brackets. Just to use easy numbers, say you usually earn $100,000. You have been at DST for 25 years, and are entitled to a years severance pay. You would end up receiving a severance payment of $100,000, throw in $10,000 vacation, and maybe $3,000 in the medical assistance payment. All of a sudden your 2018 Income will be $160,000+ ($50,000 salary for the first half of the year included). This will push you into tax brackets you haven’t seen before.

I think you will have the option of receiving your severance money all at once, or spread over payments. If the taxes are a concern, ask DST to make two income severance payments to you - one at the time of termination and one on 1-1-19.

The tax man.

Good info. Thank you

ya, we know already.