Separation solutions and administration
Given the current economic environment, many employers will be reviewing their workforce costs and may be forced to make the difficult decision to reduce headcount. Buck's separation solutions and administration services assist employers in designing and administering every aspect of separation and severance, including:
- Daily/weekly feeds from payroll system
- Plan sponsor query & reporting
- Creation and valuation of restructure groups
- Reserve calculation and tracking
- Severance package creation
- Administration of severance payments
Buck also offers a turn-key technology tool, called Severance Solution®, that helps organizations better manage the costs associated with reductions in force. It includes three plan design options that can be used to create a severance program that provides full salary replacement while eliminating the overpayments inherent in most traditional severance arrangements. Severance Solution can:
- Eliminate Federal Insurance Contributions Act (FICA) taxes on severance payments
- Integrate employer severance payments with state unemployment benefits to avoid double-paying displaced workers
- Reduce or stop payments when a displaced worker finds new employment and no longer needs salary replacement
Severance Solution can be implemented in a co-sourced or fully outsourced environment, and can help you redirect your severance resources in higher-value ways – from increasing COBRA subsidies and providing outplacement services to extending severance payments for those who remain unemployed. You can also use savings to fund programs for your retained workers, such as retraining or retention bonuses, or to return value to shareholders.
Savings can be achieved as quickly as 60 days from the date of the project kickoff. To see how much you can save, visit www.buckapplications.com/severance.
Take a moment to learn more about how we helped a client cut costs while extending the severance period.
Listen to our on-demand webinar, Severance Savings – Making the Best Out of a Difficult Situation, and download a complimentary copy of the presentation.