The Essentials

An efficient approach that combines consulting, communications, implementation, and ongoing administration with full customer service support, Severance Solution helps organizations better manage the costs associated with reductions in force. Severance Solution 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:

• 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.