Thread regarding Anthem Inc. layoffs

Severance Pay w/Retirement?

A question for recent Anthem retirees - is severance pay included after a planned retirement date ? or is that what you would expect from a "retirement package" ?

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Post ID: @OP+127fRpPO

6 replies (most recent on top)

The IRS Rule of 55 allows an employee who is laid off, fired, or who quits a job between the ages of 55 and 59 1/2 to pull money out of his 401(k) or 403(b) plan without penalty. ... If you have money in a former 401(k) or 403(b), it's not eligible for the early withdrawal penalty exemption.

Google “IRS Rule 55”

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Post ID: @8zcu+127fRpPO

Hello .. can someone please confirm .. if you are RIF’ed or laid off at 55 or older, will you have to pay 10% penalty if you withdraw money from your 401K or not ?

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Post ID: @8jcd+127fRpPO

Just an FYI, I checked with my tax accountant and below is NOT accurate!

“..if you are released from your job and are 55 or older, you do not have to pay the 10% penalty for early withdrawal.”

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Post ID: @7jnn+127fRpPO

Severance is only included after a RIF action. If the question is whether a severance plan is offered if you decide to retire on your own without any offer or RIF action, the answer is no. The only real retirement benefits you get are: 1) if you are eligible for retirement and leave the company, you will get a pro-rated AIP for the months that you worked; 2) you are eligible for the new post employment medical plan (PEM) until you turn 65 although the price is prohibitively high; 3) if you are in a stock-eligible job, some of your stock may continue to vest but perhaps on an accelerated timeline. You are also eligible for a retirement gift. There are some grandfathered, long-term employees who may have an RMSA (retiree medical savings account) or a pension plan, but both were discontinued long ago.

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Post ID: @5xlq+127fRpPO

I worked for Anthem for 30 years and was laid off the end of March. I stayed on unemployment and SUB pay for 6 months and then decided to retire. I am 56. One thing I found out about 401K from my tax advisor - if you are released from your job and are 55 or older, you do not have to pay the 10% penalty for early withdrawal. You do have to claim any withdrawals as income though.

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Post ID: @3uqi+127fRpPO

This is how it went for me. Got the RIF call on June 6th and worked till July 6th. Been with the company for almost 25 years. I got a new job with another company a month later. I am not a retiree but close. I was classified as one by Anthem as I was over 50. I received half my supplemental unemployment payment since I didn’t want to play the unemployment game. They don’t call it severance anymore. I have a 401k that will kick in at 59 and a small pension at 70. To answer your question I would say talk with your manager/hr about retirement benefits before you sign the RIF paperwork. Good luck.

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Post ID: @3efs+127fRpPO

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