Let me start by saying I didn’t get an offer, this is just curiosity. Why would anyone accept a buyout if layoffs are coming once the deadline passes? Is the offer better than severance? If so, how? Sorry if this is a stupid question, but I’d like to understand what’s making people choose a buyout instead of waiting to see what happens with layoffs.
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If I read it correctly it clearly said they decide IF YOU GET THE VRSP.Which is why THEY WILL LET YOU KNOW ...
That one sentence should tell you that you could sign your rights away to leave and may still get NOTHING!
HARD PASS UHC
Take the buyout if you’re in the red states because the unemployment insurance is really bad. For those in the blue states with good unemployment insurance, might be more difficult choice. Take a look at all your state benefits, the pros and the cons.
The magical unemployment spoken of is usually no where near your old salary. Most unemployment departments are so dysfunctional it may be quite a while before you get anything. With the mass amount of layoffs happening do not count on any money being left in the state unemployment bucket. In past down cycles the fed has bailed out the states. With the new sheriff in down the chance of that happening again is zero. If you got the buyout offer that is a big flag you failed the popularity contest so no one is looking out for you.
The VRSP being offered now is better than being laid off because if you read the SPD for UHC's official severance package policy, they do not have to offer you a severance package for layoffs. It specifically says they determine who is eligible to participate in their severance program in their sole discretion.
So if you do but sign up to receive the VRSP and then you are part of a layoff, they could very well offer you no severance whatsoever at that point.
If you live in a state like Florida, Missouri, etc where unemployment benefits are abysmal this would then put you at a great disadvantage.
The buyout only makes sense if you are close to retiring- which in UHC world is quitting. Otherwise why take the buyout? If you do indeed get let go you are eligible for unemployment and the standard severance package.
The buyout is four more weeks of pay but no unemployment. With the buyout you have to wait a year to reapply but with a layoff and severance you can right away if you choose. The buyout is good if you’re ready to retire or have another opportunity.
A few weeks before the payout, change your w4 to max out the dependents. You will keep a lot more of your money. (keep in mind you potentially could have to pay some back at the end of the year but I'd rather have the money up front)
You also need to see how the buyout treats other things such as bonuses, your 401(k), and other short and long term incentives such as stock and vesting. A lump sum payout is also taxed in many states at a far higher rate than normal salary (if you received a bonus, take a look at how it was taxed).
You may also not qualify for unemployment payments if your state interprets a buyout as voluntary quitting. Check!
Non-competes--only health plans, or every business UHG is in. If non-competes are valid in your state (and they are in many), you are likely blocked from a lot of jobs because your experience is too specific.
If you are a low performer or in a unit that's got no future due to AI or outsourcing/offshoring, or close to retirement, it's likely that your best deal, even given the above, is the buyout. However, you may want to explore whether that May 1 date is hard and fast, based on their need of your services. The longer you can stretch out a regular salary, the better.
I am not taking it. Signing my rights away into a really bad job market, loss of unemployment chance with voluntary quitting, would have to buy private medical insurance etc. if I get laid off in future then so be it but I am not quitting and giving up any chances I have. For me it would be 3 weeks only of additional severance compared to the standard of time being here
Also, if layoffs in future happen they do not need to give ANY severance pay it is at their discretion.. this package they are offering is guaranteed severance, if you decline now you may be laid off in the future without any severance.. So depends on each individual situation and your risk tolerance.
For me, I was already contemplating leaving and looking for different jobs..but also kind of lingering on because, let's face it..it's easier. Deep down though I no longer want to work from home in my situation but there's no office to go back to. I do generally like and appreciate my job but it's not a fit for me anymore. I am also in a decent financial situation..something like the $250/week in unemployment is pretty laughable to me. I'd rather have control of my future and know a date I'm done, have some time off this summer, and have things mapped out. I realize this isn't going to be the case for everyone but it's going to work well for me
Also when it comes to layoffs, for a lot of states this buyout is cheaper than what could be 6 months of unemployment added to the normal severance which is 4 weeks less than what is being offered.
Supposedly it will appeal to people close to retirement or looking for a change. It's presented as a positive to find people willing to leave to spare those who don't. Because someone does need to leave. But to me there still has to be something past that. If not enough people take it, that's when I'll probably get my question answered because they won't be transparent about what's making my gut go off about this.
The severance for the buyout is more than the standard severance usually offered by the company.