How log did it take to get severance package , and close out 401k , I know I'm on the list to be laid off soon
10 replies (most recent on top)
I received my notice of termination in Sept. 2021 with a last day of employment date of 12/31/2021. As others have stated I received my severance package at the end of the first pay period after my termination date. You don't have to (nor should you) do anything with your 401K plan until you are settled in and comfortable at your next position. There is no penalty keeping your account open at BOML for any duration after your termination date. There are some rules around how soon after termination you can rollout so be sure to check on that with BOML.
Your new 401K provider will assist you in rolling over your Fiserv 401K at $0 cost to you.
@2tkv+1hzccbja
What a cynical way on Fiserv's part. Thieves
I was told I would be laid off in 3/2018 only to be converted to a contract position which kept them from paying my severance. Don't count on a package. Also I didn't stick around as a contractor and gave them the finger within 30 days. Good luck to all of those working under FB.
If you're not gone yet, make sure you don't have any points to spend in the awards program. If you have some points, buy a few gift certificates. It may not be much, but a free dinner is a free dinner. Stay away from the actual items, as they are cheaper elsewhere.
I received my severance the next pay period. Beware of taxes. My cobra is the same amount that was taken from my paycheck. That is good for 6 months. I signed the paperwork the day of my termination.
Just to confirm what others said, 401k is never going to be closed, however you might want to transfer it as you will pay higher fees. The company covers them when you are an employee, same with an HSA if you have one of those. I got my severance check on the cycle after signing the paperwork. I think I had 30 days and didn't sign right away. Also I signed up for cobra, which wanted me to pay for 6 months all at once, but you don't have to pay until you need to use it, as I got a job pretty quick with medical I never paid for it. I'm not a expert on the medical stuff, but I'm pretty sure even in an emergency situation I would have been fine.
Severance and any other payouts come in next pay period. Lump sum. It’s not dragged out. They want people off the books.
Severance came basically right when my next paycheck would have. 401k wise, Merrill won't let you do anything with/to it for 30 days after your termination date.
How long did it take for them to ultimately pay out the severance though? Do they drag their feet on it, or does it come through in a week or two?
Small aside: I wasn't laid off, but when I left voluntarily, my 401(k) at BAML remained open. They won't close it out for you - and that's good, as it would create a potential tax headache since it could count as a distribution if not handled properly. I actually still have my old Fiserv 401(k) account open, since I don't see much of a point in rolling it over into either my current employer's 401(k) or an IRA. But if you wanted to roll your 401(k) over, in the event that you are laid off, then you would do it yourself after you no longer work for the company.