Does it include payouts? Is it similar to severance pay? Appreciate any experiences that you can share.
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NA VERP for SAP. Washington state. Anyone apply and get unemployment? I took the VERP for fear that layoffs would start, and they did. Read that WA might accept claim since they annouced layoffs in Jan 2024
How is the pay calculated for folks with bonus or commission? Some of us are on sales plans that are 50-50 or so.
@dgle+1qJSvU5l
total years of service counts regardless of where you are recruited.
Feb.16 kick off VERP. Push this up for more discussion.
Anyone know if you moved between SAP location, will the service year be different?
For example, worked in SAP Germany for 20 years, and then move to SAP America for 10 years, will they count as 30 year service within SAP AG？ or the later one 10 years only in SAP America?
Any negotiation space here with HR?
in 2019 no cap on the salary payout.
Regarding Cobra:
"If you participate in the VERP, you will have access to COBRA continuation coverage for your current medical, dental and vision
coverage (if applicable). The cost for COBRA is 102% of the premium amount. As part of your VERP benefit, SAP will include an
additional payment equal to the full possible cost (i.e., 102% of the premium amount) of nine months of your coverage through
COBRA. For example, if the full cost of your coverage will be $500 per month, your health benefit supplement will be $4,500. It is
important to note that this payment is taxable."
Anyone recalls in 2019 if the 4 weeks for one year service had any limit/cap? And is the COBRA one time payout or continuing for by mo for 9 mos as if you were still employed based cover whoever were covered before separation? If it's the former how do we pay insurance? If it's the latter does SAP pay on our behalf or we also pay to insurance directly mo-mo?
So simple calculation， 2 plans:
Early retirement [willing to leave the job] package + Maybe No EI from government + health insurance
vs
Lay off package [lay off letter] package + You can still get EI insurance money for XX weeks from government + health insurance
Maybe the health insurance part will be some difference.
@6xcj+1qJSvU5l
Agreed. 2 weeks, by the way, is standard separation pay in the US. So, in essence, if they offer 2 weeks and call it an early retirement package, they are simply laying you off.
@6fec+1qJSvU5l
Don't know about EI in Canada, but in the US the general rule is that you aren't eligible for unemployment benefits if you've willingly left your job. Who knows what the difference between the VERP and the layoff severance will be this year. But in 2019 the VERP was an "enhanced" severance with 4 weeks per year v the standard severance which is 2 weeks per year. If you qualify for the VERP when offered and want to leave SAP you should take it. There is no advantage to holding out for the standard layoff severance, and no guarantee you might get laid off. Further more, in the US, unemployment benefits even if you get laid off are adjusted based on severance that you receive.
Anyone knows if you can still apply for EI from government if you take the early retirement opt? Any difference from the layoff batch? I mean if it is only 2 weeks per year, then what's the benefit for taking early retirement opt vs layoff opt? more health insurance coverage months?
I don’t know how many 59 or 60 year olds will take a package that only gives them 2 weeks per year of service. Not exactly an incentive to retire. If they want takers it should be at least 4 weeks per year of service.
In 2023, it was:
- T1 - T4: 2 wks per year of service
T5: 3 wks per year of service
A minimum of 12 wks for all
- 9 months of COBRA, paid in cash.
- Cashed out all accrued vacation.
- All RSUs were fast tracked and paid out in cash at the next payout date after the last day of employment.
- 30 days of notice period for most states. Some states such as CA got 60 days.
- 9 months of career coaching and upskilling services by LHH.
- If your last day of employment is in the earlier or even middle of the month, your healthcare benefits continue until the end of the month. If doesn't stop right away.
ADVICE TO ALL US EMPLOYEES:
Change your 401K contributions for salary and bonus to the MAX right now. That way you can stash money away in 401K because you don't know when you will have your next job. Plus that allows you to get the max SAP match for that period. The matching only happens once a quarter. If they lay you off and you get 30 days notice, you may not get the match but it is likely that you will get the match if you get 60 days notice (in CA, for example). It will also reduce your income tax a little because the severance pay and RSU cash-out will hurt you big tax-wise.
Also, change OWN SAP contribution to the MAX right now. Get the full 30% from SAP.
Do not use any vacation time. Use the sick days or personal days. That way you get the most days for vacation payout.
If you don't get laid off, you can change your 401K and OWN SAP to a lower amount.
If you get laid off, you cannot go back and work for SAP for 2 years. Not even as a C-user. If you join a partner and think that you will be able to do work for SAP or get on SAP paper, you are wrong. They check meticulously and it is always flagged. An exception is rare. Have not heard of anyone from 2023 getting one so far.
BUT...SAP NS2 is a fully independent subsidiary. So no restrictions there. If they have open positions, take it.
Rumor mill in the US churning... word is they increased the VERP age to 62. Again, a rumor, but...
Regarding Canada - was there any continuation of benefits last time around, or just a straight pay off..asking for a friend ;)
Canada was 55 last time around. 4 weeks' pay per year of service.
@alj+1qJSvU5l: You are right about that, no forced layoffs. In Germany, the works council negotiated an agreement with the company, valid still until the end of the year, that there will be no forced layoffs in the event of a restructuring program. These agreements are legally binding. So in Germany, SAP has no other option than voluntary early retirement and voluntary termination.
59 in the year of the offer… at least that’s how it’s worked in the US in the past. Differs from country to country. No clue what Canada is.
In February 2015, the requirements were "born in or before 1956 with at least 5 years of service."
anyone knows what's the rough age for entering the early retirement cut threshold? 50? 55? 60? 45????
Regarding "Early retirement in North America" and " an exclusive focus on early retirement and a voluntary program in Germany."
I interpreted this as meaning voluntary in both locations, but that there would not be any forced layoffs in Germany, only early retirement and voluntary redundancy..who knows though
Interesting way of describing the impact in the FAQ. They talk about "Early retirement in North America" and " an exclusive focus on early retirement and a voluntary program in Germany." So... not voluntary in NA?
I don't remember the lump sum payment formulas, but the healthcare coverage went down from 2015 vs. 2019.
2015: Participating employees will receive an incentive package that includes a lump sum severance payment (determined by their base salary and years of service), extended medical benefits and subject to plan terms, annual tax free reimbursements for healthcare expenses until they reach age 65 when Medicare is available to them.
2019: Lump sum severance payout. COBRA for 18 months (as mandated by law), but SAP paid the premiums for the first 9 months.
I'm confused. They keep talking about keeping 2/3rds of affected employees by job changes, and upskilling. If we find out who is affected in April, is that when people are cut, or when these "upskilling" projects will take place for the affected people, and cuts are further down the line?
2023 layoff was 2 weeks per year
And for those laid off in 2019 in the US, the package was 2 or 3 weeks pay, depending on the level of the employee.
In 2019, the package was 4 weeks pay for every year and cash for COBRA through the end of the year.