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Yes, the Company requires employees to sign a “Waiver and Release” in order to receive a Voluntary Layoff (VLO).
The contract provides one (1) week of pay for each full year of service up to a maximum of 26 weeks. Payment is made in a single lump sum. If you apply for COBRA, Boeing will also subsidize the first three months of medical and dental coverage.
The Letter of Understanding on Voluntary Layoff with Boeing states: “The employee will be coded as a layoff and will be regarded for all Company purposes as a laid off employee (including for purposes of reporting to state employment security departments)...” There are other requirements for unemployment benefits so you should check with your state’s Employment Security Division.
Yes. The Company alone decides who will be offered Voluntary Layoff (VLO), and whether you will be approved for VLO if you apply for it.
The Company alone determines when you will exit work under a Voluntary Layoff (VLO). The Company may require you to “transfer knowledge” to other employees before your last day of work.
The Boeing layoff COBRA subsidy makes your COBRA premiums for the first three months the same as the rates you paid as an active employee. You will be billed the full COBRA rates for the fourth month, which you may choose to pay. If you are eligible for pre-65 retiree medical, you may enroll in retiree medical instead of paying the COBRA bill for the fourth month. To find out the full current COBRA rates, call Boeing's Total Access at 866-473-2016.
Note: It may be a better option for some employees to obtain coverage through the Affordable Care Act upon being laid off instead of taking COBRA. Therefore, investigate and consider this option carefully when deciding whether to opt in to the COBRA benefit at layoff.
Yes, once active coverage under a Boeing medical and/or dental plan ends, your Boeing-employed spouse can add you as a dependent if they have active coverage through Boeing. If your spouse works for another employer, you should check with that employer’s plan eligibility requirements.
No. If you are eligible for retiree medical, your eligibility is not affected by taking VLO. If you are age 65 or older when laid off, you should consider enrolling in Medicare coverage, unless you are covered by your spouse’s employer-based coverage.
You will be paid for all unused accrued vacation hours at your base rate of pay in effect at the date of layoff.
Upon layoff, one-half (½) of your current sick leave will transfer to unused, and one-half (½) will be discarded. If retirement eligible, you will be paid 50% of your unused sick leave at the lesser of your rate or $40 per hour.
Since your layoff benefits are paid in a single lump sum, many retirement eligible individuals start their pension as soon as possible after layoff.
Yes. If you are laid off in 2016 and delay starting your pension until 2017, you will be eligible to receive the $100 conversion factor, which may or may not increase your pension benefit. If you commence your pension in 2016, you would be eligible to receive the 2016 conversion factor of $91. Most individuals laid off in 2016 with an annual base salary of under approximately $110,000 should consider unemployment and delaying their pension until 2017. Most individuals with an annual base salary over $120,000 should consider starting their pension as soon as possible after layoff and not delaying their pension.
You can retire the first day of the next month after receiving your lump sum payment if your timing is good. If that is your choice, then this is the recommending timing:
Important: Some individuals submit the Commencement Packet before actually being laid off. If you do that, know that if your layoff gets pushed out for whatever reason, you will have to cancel the packet in writing (faxed to the Retirement Service Center at 855-283-3913 and provided to your retirement coordinator) before your benefit commencement date. If the Boeing Retirement Service Center does not receive your written cancellation before your Benefit Commencement Date (BCD), you will not be laid off (you will lose all layoff benefits).
- Receive your VLO date.
- That day or the next, order your Commencement Packet from Boeing with a benefit commencement date (BCD) the first day of the month following your layoff date.
- Get all documents in order and prepare to submit the packet.
- Get laid off on layoff date.
- Submit your completed Commencement Packet before your Benefit Commencement Date (BCD).
If you are not yet retirement eligible, but are at least age 49 at the time of layoff with at least 10 years of BCERP vesting service, you will be able to commence your pension at age 55, and receive the preferential (active employee) age-based pension reduction. At that time, you may also enroll in Early Retiree Medical, if you are eligible.
If you are younger than 49 at layoff and/or have less than 10 years of BCERP vesting service, you will not be eligible for the preferential age-based pension reduction, and will instead receive a much worse age-based penalty. Additionally, you would lose all eligibility for Early Retiree Medical.
You could be rehired by Boeing after taking a VLO; however, you will not have any enforceable rights to recall.
If you are rehired by Boeing, you must repay any excess benefits to the Company, or the Company will be authorized to collect the excess benefits directly from you. For example, if you receive a 13-week lump-sum layoff benefit and then are rehired after 10 weeks of layoff, you will be required to pay back three weeks of the lump sum.
Yes, employees on approved leave of absence are eligible to participate.
No, it is not possible to deposit layoff benefits into your 401(k) account.
Yes. SPEEA-represented employees who terminate their employment during the performance period due to layoff remain eligible for a pro-rated EIP award based on the eligible earnings received during their period of eligibility before being laid off.
No. The benefits for VLO are specifically defined as one week of pay per year of service up to a maximum of 26 weeks, and three months of COBRA coverage paid for by Boeing.
Yes. However, if you have already returned your pension Commencement Packet or initiated retirement online, the Boeing Retirement Service Center must receive your written cancellation before your retirement date. Voluntary Layoff (VLO) program benefits are not payable if you retire prior to your layoff date. If you are approved for Voluntary Layoff and wish to change your scheduled retirement date to coincide with your layoff date, contact the Boeing Retirement Coordinator at 855-283-3913 for assistance.
Salaried employees who are approved for Voluntary Layoff (VLO) and receive a layoff date are still eligible for LTP as long as they are on active status on the start date of the course/s. Evidence of successful completion must be provided to the LTP within 45 days of the class end date to avoid repayment.
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