EMEA based so apologies for lack of knowledge on SUB. There is a perception in EMEA that the US is especially ruthless and people laid off get no package but I don't think thats accurate. How do layoffs work in the US?
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@dbdu, check again gramps. Sub pay is NOT subject to fica.
From your separation document:
"SUB payments are the semi-monthly separation payments made to you under The
Bank of New York Mellon Corporation Supplemental Unemployment Benefit Plan
(SUB Plan). Separation payments are considered SUB Plan payments when they
meet the eligibility requirements described in the SUB Plan, that allow them to be
made without deducting Social Security and Medicare taxes. This provides you
with up to 7.65% more “take-home” pay"
As a person who received SUB I can attest to @1cet statement on payroll taxes. Yes payroll taxes are withheld and have to be paid. They withhold it at source
Worst is the unemployment money is also subject to Federal (all taxes) - only state is forgiven. And if you are high income earner, unemployment can push you into the additional Medicare and Investment income taxes
"Although the state of New Jersey does not tax Unemployment Insurance benefits, they are subject to federal income taxes. To help offset your future tax liability, you may voluntarily choose to have 10% of your weekly Unemployment Insurance benefits withheld and sent to the Internal Revenue Service (IRS)."
@1cet, sub pay is NOT considered earned income and is NOT subject to SS taxes. It also won't have contributions taken out for things such as 401(k), HSA, vacation purchase etc.
@2aee, state unemployment systems notify employers of all employees subject to their unemployment insurance. That's doesn't mean they'll know if you're working, but they WILL know if you aren't drawing UE.
That "rumor" of sub pay reduction is real. It's another general movement in the industry to make mass layoff more affordable. Going down to 3 or 4 month max....so, have a plan B for those like myself who were looking for that 1 year payout!
What is the “of a certain age” you mention? I am an older worker and was laid off two weeks before the cutoff date and lost 9+ months of 401k match.
Nothing juicy about losing your job AND your retirement match.
@4plz if you can prove you already had the part time job before your termination date then it’s ok. Unemployment might be less depending on your state but supplemental pay would not be effected.
if you currently have an existing part time job would it impact sub
Regarding 6. One loses ANY pretax Commuter benefits that are unused.
The Bank normally provides pay for 2 weeks before your SUB begins. During those 2 weeks before your true termination date, get any money in your Commuter account onto your Connection card which you can then use for T or bus fares.
Sorry not about to help you game the system.
Does BNY actually check if you start a new job? I heard you have to log in to some BNY portal every couple weeks and state whether or not you found a new job. What if you keep stating you’re still unemployed even though you found a job? How would they know other than honesty?
How would they know if you start another job?
@1cet+1uOMeKO1 Excellent post. In my state, the unemployment benefit is $854 per week, so if I got laid off and took a 26-week vacation, I would get SUB pay + $22,204.
The SUB benefit is the main reason I'm still here. Since I was hired in 2010, my department has been shedding people in dribs and drabs over the years, and there aren't many of us left at this point.
I actually like what I do and work with a great team, so I would like to finish my career here if possible. If not, then I'll take a six-month vacation and look for a contracting gig.
@1cet - With regard to medical benefits, those continue throughout the SUB period. Premiums are deducted from the SUB pay. It's only when the SUB has ended that COBRA is offered. And believe me, it is pricey!
@1cet - No one will down vote you. This is the only generous benefit that the bank still offers. It's the main reason most of us are still enduring the pain.
Putting aside all the rumors _current_ SUB is simple
2 weeks of pay / year of service. There is a MINIMUM based on grade ( do not know the details - there can be speculations and guess work written here). From my real data there was one person who was a L , who got 12 weeks MINIMUM for 2 years of service.
A few important factors on SUB
- If one becomes gainfully employed before the SUB runs out the SUB ends.
- One can file for UNEMPLOYMENT during this period
- Benefits continue, I believe (others may fill in) - Premiums may be COBRA based
- SUB pay comes as if it is regular pay check (every 2 weeks) with SS / Medicare / FIT / SIT deducted. Funny I believe they ALSO deduct Unemployment Insurance
- No 401k deductions (obviously) allowed
- One loses ANY pretax Commuter benefits that are unused.
- FSA if underpaid is not clawed back (surprise !). If one maxes out FSA before they completed the 26 payments The difference is an unexpected gift.
- Until last year the firm paid pro-rated BONUS based on the prior year bonus.
- Based on most of the folks I know who are older workers they got their full 401 (k) match (true match too) in March. Have to see how it works out for those laid off this year. Any one above a certain age MUST be matched.
So the MOST important rule is do not be gainfully employed even as a gig worker where you get paid on W2 or 1099-NEC where you end up paying SS taxes. The contract is pretty clear about clawing back.
In fact BNY's SUB is one good package especially if one has a long tenure. For any one who has put in 20+ years of service it is nearly 80%+ of yearly salary (for sipping a drink o the beach) PLUS part bonus PLUS 26 weeks of unemployment (depending upon the state it is lot of $$ say if one is from MA, unemployment is a significant amount).
Folks here keep spreading the rumor / news that the SUB is going away or being reduced. But the popular belief is that, the firm may avoid law suits by dangling a rather juicy package - which MAY not even match the money they spend on Starbucks - than engage in any unwanted lawsuits, especially on the lines of age discrimination.
May be it will be interesting to compare the package in UK
One major concern is the Health Insurance. If one is not fortunate enough to have a spousal coverage to kick in, COBRA premium can be high. There is no NHS here. In some cases Obamacare premium subsidy can help.
Overall, so far, BNY has been, for all the negativity that is spewed here, has been generous - I believe.
Wondering how many will down vote this for stating the facts (with a bit of opinion) - Will showcase the way this forum behaves
In the US, you get a “Supplemental Unemployment Benefit” (SUB). Basically you are paid up to some number of weeks as long as you are unemployed. Once you start a new job, even part time, it ends. So you may qualify for 20 weeks based on your time of service but if you start a job after 6 weeks, then 6 is what you get.
Well you get enough to keep you going for a while as you hustle to find work before it runs out.
It’s nothing like our British employees with their strong labor laws, whom get a year or more to go on Holiday. US doesn’t have anything like hitting the lottery in England.