After watching the video it appears that whether you opt out or opt in and do not receive a reasonable job offer you will receive the same severance. My question is unless you were planning on retiring soon or quitting why would you opt out?
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The difference on severance is involuntary severance pays you 3 months less pay than voluntary severance. As far as why Opt-out, because by opting-in that allows SF to place you where they want you, not necessarily where you requested and if they make you a “reasonable” job offer you can’t turn it down and still get severance. You might very well get stuck with a job you never wanted and most of the jobs that will be left behind are dead end jobs
Please don't make blanket statements about unemployment if you don't know for sure. Every state is different on how they treat severance pay. Some states ignore it and you can draw unemployment. Some states will only let you draw unemployment after the last "week" you receive severance. If you got 24 weeks of severance, you would be able to draw week 25. And some states do combinations of above. So it is important to check your state so you don't get a surprise.
So, let’s say you decide to opt-in and are chosen to keep your job. Great, right? Not necessarily. You could now be doing the work of 10 other employees who were let go, with unrealistic metrics and more pain and suffering than you thought....and then decide to quit or are fired...with $0. However, maybe things could turn out ok by opting in. My opinion is you are gambling too heavy with opting in. Take your severance now versus possibly regretting not taking it in the future.
It is not "construed as a voluntary termination of employment"... If u want a penny of severance from SF you must sign a statement declaring "voluntary seperation".
No unemployment on voluntary severance.
I would argue that some may take the opt out if they were close enough to retirement, or they wanted to get out ahead of the other jobseekers in their market. It isn't the wisest financial decision, but then again, staying here isn't the wisest financial decision either.
Always let them lay you off. If they pay you severance great, but you will also be eligible for unemployment as severance payments do the factor into consideration.
Unless there is early retirement offer on favorable terms, insurance coverage, make-up payments, you are lily better off taking the offered severance and collecting unemployment.
Logically speaking I believe it could be due to unemployment benefits. If one was to take a voluntary severance it could be construed as a voluntary termination of employment. Therefore State Farm would not be held responsible for covering any unemployment benefits should you apply to supplement income while you look for a new job opportunity.