My team had about 8 of 12 people released today. Question on severance, lump sum or receive weekly pay until it runs out? Thinking about tax implications here and best options.
13 replies (most recent on top)
It's the quiet before the storm. The excuses were sent out today. We all know it's always a list of excuses and zero personal accountability. It's the AIG way now and day..
This is pay week so I am sure there will be more lay offs this week
ceo bd received 43.1M in 2017, the highest paid insurance CEO for delivering no results.
then, he gave his neighbors in bermuda a good exit from validus at the peak of the bull run. At kbw insurance conference, he was questioned on why he took on such a risk.
The Hamilton USA/Blackboard platform company's acquisition for $110M sits as goodwill, which will impair soon as they haven't delivered any platform (as against what was promised - H2 2018). It is just fun and play-money for the chief boss lady there.
Ideally, for such poor business judgment and performance, he should be out by now and the firm should treat his severance as a restructuring charge.
Do not take a lump some. You will not have medical or health benefits.
I got cut from AIG few months ago. If you are technologist from FW, retrain in on demand technologies like cloud/security using severance period rather than taking a vacation. Unless you are in 50's (ageism impact) market is very hot in DFW area . I got a much better job. I didn't have lot of tenure (around 3 years) but getting cut from that place helped me focus and get a higher paying job. The culture in FW due to few people is so toxic it is better for emotional health to leave that place. The company has good brand name , use it , take severance in installments and technically you are in pay roll until it runs out. Easy to find Job once you have one. Stay positive , Get focused on learning new skills, net work and it is easy to find one. If you are above 50 and you have survived by pushing papers (aka Management, Business analyst) it may be difficult to find one right away , but since you will have few months of severance , you can find one. Have a sense of gratitude to the company , this company severance is one of best (no one prorates your STI like AIG) . Stay positive and you will land some thing. Good luck to you all. I felt positive that this company is getting serious in getting cost under control, so use portion of severance to buy stock/option on AIG if you can.
You need to check with your state unemployment office regarding unemployment and your payout. In Illinois you can collect unemployment and your weekly payout at the same time. I heard it's not the same for Wisconsin though so you do need to call your unemployment office.
I agree the lump sum gets clobbered by taxes. Especially, at year end. Take the paycheck with your medical deducted over whatever payout timeframe you are under (2 weeks for every year). It's the same as being there; except better, because you aren't there.
I got laid off 4 1/2 years ago. Take the weekly pay. Don’t do a lump sum. If you take a lump sum you lose your medical insurance, plus the tax implications are usually better if you do weekly.. If you take the weekly check and you have enough to go into next year you won’t have to pay as much in taxes because they would be spread out over two years. Plus, I think it irritates HR when you take the weekly check. They wanted to get us to take a lump sum saying it was the better option. Make AIG give you everything you can. Make them pay for your medical for as long as you can.
Does continuation of salary impact your ability to collect unemployment?
Don't do the lump payoff. Taxes will take a lot of it. Take the weekly pay especially if you need the medical coverage. The medical dental and vision will be taken out as usual as long as you choose weekly.
considering the same questions - thinking lump sum
My group got hit hard two weeks ago. To answer your question about payment, I did the weekly pay only because I want to continue the medical plan. Lump sum definitely will have tax implication plus no medical if you decide to choose that route.
What group