Thread regarding Bank of America layoffs

Read Chapter 6 of the Employee Handbook "Leaving Bank of America". Excerpt below.[IMHO: Not much!]

Medical: Your retiree coverage will begin the first day of the month following
the end of your coverage as an active associate. For most Bank of America retirees, the monthly cost of health care coverage as a retiree will be signifi cantly greater than the cost as an associate. Group medical coverage continues at retiree rates.

[Meaning; You pay your portion like you did as an employee PLUS the bank's portion, which can be 2x-3x your portion.]

If you are not eligible for dental and vision coverage as a retiree,
your coverage as an associate ends. You will be sent information
regarding how you can elect continuation of coverage (COBRA)
approximately 30 days after your coverage ends.

Employee Assistance Program: You may use this service until 18 months from the end of the pay period in which you terminated your employment.

Associate Banking & Investments: Some of the specially priced Associate Banking & Investments products may be converted to regular customer rates.

[Note: if you maintain high balances as a "regular customer", some of these fees may be waived.]

Merrill investment services: You are not eligible for associate discounts on investment products and services after your employment ends.

Matching gifts: You may still be eligible for Retiree Matching Gifts to qualifying 5013c organizations.

Caveat to all of the above: If you were fortunate to be employed by a predecessor entity that Bank of America required, you "may" be eligible to additional benefits.

@zcbwa+I2eckkd - if you read the fine print on RSUs, some award agreements state that "if you qualify" eligible recipients continue to receive RSUs "per the vesting schedule", while other RSUs "vest immediately" upon a "qualifying event" (e.g. layoff, retirement).

It's very confusing and I stumped the Benefits call line by asking.

I went back and read each agreement. PITA.

Has anyone discovered that Rule of 60 says you get to keep the Restricted Stock Units ? =- but actually they are removed - Merrill Ly--h told me they could not respond - get a lawyer

There is an insurance calculator on the bank's benefits site where you can see exactly what your premiums would be after a specified retirement date. I think it limits you to 90 or 180 days in the future. There is also a COBRA calculator.

When i checked, the premiums in retirement are very high, about the same as private insurance. Even with rule of 75 I was only getting $70 bank contribution toward a premium that was over $2700 a month plus $160 for dental. Also note that adult children don't seem to be covered in retiree health plans.

There is also a COBRA calculator on the site. While very expensive, it can still be a good deal for an early retiree since you can keep the same coverage for 18 months at a rate much lower than the retiree benefit. Mine was about $1600 a month and $140 for dental. And I believe adult children would still be covered since it's a continuation of your current plan. Plus, you'd continue working toward the deductible you already started for the year and avoid any issues with preexisting conditions.

You have it here too @TJLT1lV

received serverance yday, can I negotiate it to better terms

I spoke to one person who was severed (and qualified under the rule of 60) who indicated the cost of healthcare was good for retirees but when I looked at the materials and saw the rates I suspect it had to do with the salary cutoff. If you made $100k, you may want to start investigating alternate sources for health care coverage. If you are planning on finding a new job that offers coverage then it will more than likely be cheaper. Zip code is also another factor in the cost as well. Good luck.

What exactly do you get when you "retire"?

I was first responder who has a good experience with rule of 60. However once my bridging period ended so did my benefits. Once I bridged I was eligible for retirement benefits which like everyone else said basically are worthless. The healthcare rate was just as high as if I was doing cobra. To pay that much for mediocre benefits was not something I could do.

As a looong time employee, I too thought the health care benefits would amount to something (I am like the rule of 85). Per the HR calculation, my health care cost would be approximately $1,000 / month. so yeah, I am not retiring early. Can't afford it!!!

For the question about the different experiences, I don't think it matters whether you resign or receive severance. I think it matters more whether you hit the rule of 60 vs 75 or whatever the higher tenure target is. The person who had a good experience probably hit a higher tenure marker or may have still been receiving standard rates while receiving severance payments. Years ago I called HR and learned the benefit was not anything to look forward to. I agree with the prior statement that the rate exceeded a mortgage payment. Best advice is to call HR and ask. It isn't signaling any concern, just sound financial and retirement planning that you would like to better understand the benefit you hope to receive someday.

Conflicting repsonses:

'I paid the same amount that I would normally pay out of my paycheck.'

versus

'if you can afford it... it's another mortgage'.

Is the difference associate #1 was on severance which included access to grp ins, while associate #2 left on their own without access to grp ins - but did have the 'benefit' of Rule of 60?

Rule of 60...if you meet it good for you, if you can afford it... it's another mortgage...so to me it's worthless..better to use cobra or go on the exchange...since you make 0 after the severance you will get a wonderful rate on the exchange...I promise...however the copay and deductibles will be way higher depending on the "level" you purchase on the exchange...even cheaper if you have a preexisting condition.

I don't see the point of early retirement anymore - all you get is health insurance at high rates... which was valuable prior to the health care act - but now that insurance companies can't refuse you for pre-existing conditions, not sure that it matters anymore. They used to have a pension program, but that was killed years ago. So why would anyone early retire? Is there some perk I don't know about? Better to wait for a package. Most everyone will be outsourced soon anyway.

After resigning I was pleasantly surprised that they bridged my years of service and I qualified for Rule of 60. But I was equally surprised to find the benefit is worthless. The premiums were so high they were laughable and far exceed market rates.

For me they tacked on a few years of service in order to make me have years plus age equal to 60. This allowed me to bridge until my anniversary date. So essentially even though my severance ran out I was still able to get the same health coverage for me and my family for additional time. I paid the same amount that I would normally pay out of my paycheck.

For me they taked on a few years of service in order to make me have years plus age equal to 60. This allowed me to bridge until my anniversary date. So essentially even though my severance ran out I was still able to get the same health coverage for me and my family for additional time. I paid the same amount that I would nirmally pay out of my paycheck.