Questions members are asking about layoffs

Severance
Q: What is severance pay?

A: Severance is a layoff benefit provided by the company to employees who are laid off.

Q: How much to I get?

A: Employees who are involuntarily laid off receive one-week of their base pay for every full year of service up to a maximum of 26 weeks (for 26 full years or more).

Q: What is “continuation pay?”

A: Continuation pay is the method of paying out severance. Each pay period the employee receives two weeks of their continuation pay until all severance due is paid out. The other option is to receive the entire severance benefit at one time. This is known as “lump sum” payment.

Q: Will receiving severance affect my unemployment benefits?

A: No. For employees in Washington state, severance pay does NOT count toward your unemployment benefits. See the link on the SPEEA website for the letter from the Washington state Employment Security Department:

http://www.speea.org/Layoff_information/Layoff_BoeingESD.pdf

For employees in other states, refer to your state employment office listed on the Layoff Information page on the SPEEA website.

Q: Does it make any difference if I take my severance as a lump sum versus bi-weekly payments?

A: Yes, if you opt to take a lump sum you will not be eligible to enroll in the Priority Recall Consideration program.

Unemployment Benefits
Q: How do I file for state unemployment?

A: Contact your state employment office. In Washington State, you can enroll online. Links to state offices are on the SPEEA Layoff Info page.

Q: What happens if I move out of state?

A: Your state employment office has a process in place that allows you to continue receiving unemployment benefits if you move out of state. However, it is important that you notify the state employment office when you intend to move out of the state.

Q: How long do I have to wait until I get a check?

A: Refer to your state employment office listed on the Layoff Info page of the SPEEA website.

Q: How much will my check be?

A: Refer to your state employment office listed on the Layoff Info page of the SPEEA website.

Medical/Dental

Q: How long will my medical insurance continue to cover me and my family after I'm laid off?

A: Your medical insurance will continue through the end of the month in which you are laid off.

Q: What is COBRA?

A: COBRA provides a means for employees and families to temporarily continue existing medical insurance coverage after a job loss.

Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1986. The law amends the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise might be terminated.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.

COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.

COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.

Q: How much will COBRA cost?

A: Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan. The COBRA rates for medical and dental for a family are almost $1,500 a month. For a short period of time, there is a Federal Subsidy that may reduce your premiums. At Boeing, employees can call Total Access to check eligibility.

Q: How long Will COBRA last?

A: Federal laws govern eligibility. Generally, COBRA may be extended for 18 months and under certain circumstances, it can be used longer.

Q: Can I renew COBRA when it ends?

A: No. When COBRA ends, it ends.

Pension Plan:
Q: How many years until I am vested in the Boeing pension plan?

A: Typically 5 years. If the person is over 55 at time of layoff and does not have 5 years, they have a benefit available to them.

Q: If I draw my pension at age 55, what is my penalty?

A: If retiring within 6 years of layoff, the reduction for age 55 retirement is 10% meaning you will receive 90% of the full benefit.

Q: If I draw my pension, will it affect any unemployment benefits I receive?

A: Yes. Retirement from a base year employer is an offset against unemployment benefits.

Q: What happens to my pension if I'm laid off and I'm younger than 49?

A: If vested and with more than 10 years of service, you can start collecting at age 55 at 40% of age 65 benefit without Early Retiree Medical (ERM). Without 10 years of service, then retirement is available to you at age 65. If you are not vested, the pension is lost unless you are able to return to employment at the company. In this case, the benefit is covered by the BCERP plan within the necessary time constraints.


VIP 401(k)

If I'm laid off:

Q: Do I get all of my contributions?

A: Yes. The contributions you made are yours.

Q: Do I get all of the company's matching contributions?

A: Yes. The company matching contributions are yours.

Q: Do I have to pay a penalty?  

A: If you take a distribution prior to age 59 ½ you will pay a penalty for taking an early distribution.

Q: Can I move the money somewhere else?

A: You can direct a rollover to a qualified retirement account.

Q: Can I leave my money in the Boeing 401(k)?

A: Yes.

Q: What happens if I have a loan out against my 401(k)?

A: You can continue to make loan payments without penalty. If you roll over the VIP or cash out, the loan will be cashed out.

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