I have an upcoming layoff date and need to determine if I should take severance as a lump sum or income continuation. Does anyone know if how I take my severance impacts my ability to collect unemployment?
8 replies (most recent on top)
If you take the severance in the form of income continued payments YOU DO Not have to claim it with UI as a form of severance.
When you UI claim asks you “are you receiving severance” you answer no.
This is because the severance Boeing is paying you was already earned prior to your lay-off.
This was the instructions from the UI employee (Linda) that took part on the IAM751 webinar.
You can verify this with IAM751 office.
You will be able to collect UI while you are collecting Boeing severance pay.
First and most important attend the online webinar, I had my warn notice and they had people from all areas.
Take the continuous payments then you don't lose your recall rights. Also, file for your Cat. A the Monday after you walk out the door.
They had a woman from unemployment. She stated you do not have to wait to apply for UI benefits. You also do NOT claim your severance as an income.
Take the lump sum and head straight to Tulalip. Triple it and enjoy the rest of the summer. It worked for me. Boeing won't be here in 3 yrs anyways, so who cares about the recall rights.
Take the payments, not the lump sum. Payments will make the tax cut smaller and you will keep your recall rights if you are union.
You lose seniority (recall rights) if you take lump sum. You can start unemployment sooner with lump sum. If you choose income continuation, you can’t collect unemployment until after your continuation checks stop. Your recall rights can be as high a 8 years with the duration of time with Boeing being the determining factor (5 years = 8 years recall).
Lots of good info on iam751.org. Don’t believe everything you read here. Look it up and educate yourself. Poor decisions now can result in adverse impacts to both your professional and financial future.
IAM is 8 years
Thanks!
Whether you take lump sum or payments it should not effect unemployment. However if you take a lump sum you waive your rights to come back, meaning your seniority starts over. If you take payments I believe you have three years to come back and don’t file your CAT A rights until you’re ready to come back because if they offer you a job and you refuse your seniority starts over again also.... best of luck to you!