With the 401k funding change, could severance packages also change?
18 replies (most recent on top)
@ak and don't forget the compounding effect of not having that 1% in your 401K
@c6
You mean 15%
Remember when they took away the 10% discount from the lowest price in the previous 6 months for employee stock purchase? They’re adding insult to injury. I’m also not convinced our stock values aren’t being deliberately suppressed.
This used to be a good company to work for, now not so much 😑
It wouldn't surprise me at all. The severance formula would be even easier to change than the 401K (partial) match and the company has already demonstrated that they don't care about their reputation as an employer.
Just look at your pay stub - that total is what UHG is giving you at 4.5% (if you give 6%) so you are going to lose about 25% of that to get 3.5%
The Union I used to belong to in my last job would NEVER have let this happen. We would have called this being "Stupid Cheap"
@ae Sandeep that u?
@ag individuals are limited to that. The match can go over that amount
@ag salary has everything to do with it. The higher the salary the bigger the hit. For my family that is a loss of $1,700 next year in our retirement account meaning we will need to increase what we contribute in order to stay equal.
I started at small businesses where a layoff was referring you to state unemployment. Trust me; they can cut these to nothing and it’s not illegal. I’d say expect more from a Fortune 10 company, but yeah we know better.
@ag it is 1% of your SALARY, not 1% of $23,5000. Know that practically no one in America contributes all $23,500. Over 60% only contribute to the match.
@ae is correct. you are using Funny Math. What does salary have to do with it at all? You are limited to a max of 23,500
@ae, you may be financially less savvy, which is normal and I am not knocking you especially, but assuming a $70,000 average salary at UHG, that is $700 per year PRETAX every single year. Now take $700 per year multiplied by years of service and multiply it by the performance of your fund over that time.
Your pa-ties are all in a twist over a 500 dollar or less 401k loss?
Remember they can do anything to a company policy (as long as it does not violate state or federal laws and even then lol) at any time at their discretion.
I didn’t even think of that. IMO, the severance package is bare bones as it is.
Would expect that to come next. They are cutting total comp with 401k reductions, why would they take care of people they are cutting?
The financial situation is dire enough that anything could be on the table. Severance packages too.
Severance is next on the chopping block