Thread regarding Bank of New York Mellon Corp. layoffs

Where is the flexibility and new benefit?

Wellie wellie well…. Now we know why there are no layoffs in January other than those fired for cause who get nothing. They spent recharging time to perfect this odious opus. And in 2+ weeks there will be many who now get the fall out from this new plan. I see the word ‘flexibility’ used but I am not seeing how? Only that the affected person gets the ‘appearance’ of more money up front and also gets 2 pay periods of normal pay until it kicks in (they like to say 30 days like that makes it better!) and also also- you get an extra lump severence amount for healthcare capped at 20 weeks. And the titles and years of service cap it at 52 weeks .. ok then.. but is that really better in long run? (Note that they dont say it is) And where is the flexibility and new benefit? How? Unlike severance, SUB-Pay was classified as a benefit (as opposed to wages) and therefore is Federal Insurance Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA) EXEMPT for both the employer and the employee.
In most states, the payment of severance may reduces or eliminates the amount of unemployment benefits a former employee may receive from the state. This was not the case with SUB-Pay. Instead, in most states, SUB-Pay amounts will not impact eligibility for or the amount of state unemployment benefits. This here new ‘benefit’ does…. On top of a larger tax bill, now, if you cant find a job, you lose unemployment. So, where’s the flexibility and benefit beef???? And when you pay tax on this, you have less to make ends meet ultimately. And why not match the health care lump sum to be years of service and title grounded too? Staying here only penalizes you more. One thing is certain BNY mgmt had the flexibility and benefit here. Not the sacked worker. Even money says they will even reduce this severence in the near future.

Bumped from @am+1jj5b09fp.

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Post ID: @OP+1jjnht59t

10 replies (most recent on top)

Severance impacts your unemployment in Pa. depending on amount, it either reduces or eliminates it.

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Post ID: @f2+1jjnht59t

As always here everyone hears something totally differently in this disorganization.

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Post ID: @e9+1jjnht59t

@e3+1jjnht59t

NJ Government website (search Unemployment ) clearly states that Severance will NOT impact your unemployment compensation.

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Post ID: @e5+1jjnht59t

So many contradicting statements.
If I live in NJ and get severance. Can I get unemployment in NJ or must it be NY?

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Post ID: @e3+1jjnht59t

So many people commenting who don’t understand the impact of moving to a severance plan and will be in shock about how much worse this plan is if they are laid off.

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Post ID: @d2+1jjnht59t

If you get laid off under the new plan file for unemployment with your state on the effective date that you are terminated. Some or most states do not care if you get severance pay or not, but if you delay for a long period of time before filing you may have a problem.

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Post ID: @c2+1jjnht59t

@b2+1

I believe the SUB pay experience differs based on previous interactions.

Some say no taxes whereas some paid taxes (incl FICA)) - may be there was a clerical error and the employee paid the penalty

Now this

"Sub pay required you to file for unemployment and paid the difference between what unemployment paid you and what your salary was. And if you found a new job, it ended. No lump sum for whatever remained. "

There was no deduction in SUB pay when unemployment was also paid. This again is real experience

SUB stopped once a new gig was accepted. Actually there was a one pay-check overlap (a week to be precise)

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Post ID: @bk+1jjnht59t

It really depends on where you live. Some states don't allow you to get unemployment while receiving severance, but you can file once the severance runs out, provided you didn't exceed the unemployment benefit. NY is like this. Other states, like NJ, allow you to file for unemployment with the lump sum severance. NJ doesn't view severance as income, in the sense of unemployment In this case you do have the flexibility of deciding to take unemployment now, with the lump sum, or defer unemployment payments until the lump sum runs out, thereby extending the time to find work. It all depends on your local laws in your state.

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Post ID: @bj+1jjnht59t

New package doesn’t pay over time - does a lump sum payment for the weeks you’re entitled to. I’m sure it will be taxed at a higher rate than regular pay though like bonuses. No benefits continue. You can get COBRA medical coverage & they give a lump sum of up to 20 weeks of what the BNY medical contribution would have been. After 20 weeks you pay the full amount. It’s better in one way - if you have a job lined up you can take it right away & not have to worry about forfeiting any severence. Overall it a bit worse than the old plan but still not bad.

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Post ID: @bd+1jjnht59t

Sub pay required you to file for unemployment and paid the difference between what unemployment paid you and what your salary was. And if you found a new job, it ended. No lump sum for whatever remained.

Severance does not require you to file for unemployment, you get paid full salary for 2 x weeks the number of years you worked for BNY. After which you can then file for unemployment. In this way, you can extend the time to find a job by taking severance and unemployment serially. And, should you find one before severance runs out, you get the remainder as a lump sum.. It really is better than sub pay.

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Post ID: @b2+1jjnht59t

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