Frequently Asked Questions Employee Separation Packet July 2011
What is CARE’s severance package for the 2011 Organizational Redesign? CARE examined past practices, industry practices, and significant financial factors to determine the best and most prudent separation package that will be offered those employees who will no longer be employed by CARE as a result of the organizational redesign. The following is a summary of that package:
Regular full-time and part-time employees will be eligible for the following separation benefits upon receipt of a Release and Separation Agreement:
o One lump sum payment equal to 2 weeks of pay for every year of service. . The minimum severance pay will equal 2 weeks of pay (1 year of service or less), and the maximum payment will equal 30 weeks of pay (15 years of service or more) . If there has been a break in service, credit will be given for prior employment at CARE unless severance pay has previously been paid, and/or the break in service is greater than two years (see Section 1.11.2 in the Employee Handbook). . Partial years of service will be rounded up for partial years equaling 6 months or more and rounded down for partial years equaling less than 6 months [e.g., Employee A with 1 year 8 months of service will receive 4 weeks of severance pay (2 years); Employee B with 1 year 4 months of service will receive 2 weeks of severance pay (1 year)] . Severance pay will be subject to required payroll deductions . Per past practice, CARE will make an 8% 401k contribution on the severance payment for eligible employees o Outplacement support paid for by CARE for 3 months
Our Employee Assistance Program (EAP) and CARE Academy will be available for 6 months after termination.
Can I receive the payments during each pay cycle instead of a lump sum? No, your severance payment will be paid in a lump sum following your separation date.
What happens if I find another job with CARE before my separation date? If you find another position with CARE prior to your separation date, you will not be eligible for severance and hence will not be paid.
What happens if I find another job with CARE after I have already separated and received my severance payment? If you have already received your severance payment, and you are offered a position by CARE USA or another CI employing organization, you may be required to either: delay your start date until the end of your separation pay period, or payback a prorated portion of your severance payment.
What exactly is a Release and Separation Agreement? What does it mean if I don’t sign it? If order to qualify for additional pay and/or benefits, you will be required to sign a Release and Separation Agreement, which includes a waiver of all claims against CARE. If you choose not to sign the Release and Separation Agreement, you will not receive additional pay and/or benefits.
Page 1 of 3 When will my benefits end and am I eligible for COBRA? Your health insurance coverage will continue until the last day of the month in which your employment ends. You may choose to continue your medical, dental and/or vision coverage under COBRA for up to an additional 18 months.
How do I enroll for COBRA? When can I start the process? Benefits Express, CARE’s COBRA administrator will send the COBRA notice and election form within 2 weeks of your separation.
Benefits Express will mail your COBRA letter and election forms to your forwarding address after your termination date with CARE. You will have 60 days from the date of your termination or the date the COBRA participation election form is forwarded to you to elect continued coverage.
Once your election form is received, you have an additional 45 days from the date you elect coverage to submit your first premium payment for the coverage. Once you have paid your first premium for COBRA, coverage will be retroactively reinstated to the date you lost coverage.
*COBRA rates can be found in this packet in the document titled “Termination of Benefits”
What happens if I incur healthcare costs before I apply for COBRA? Claims incurred within 60 days of your benefits termination date or COBRA enrollment, whichever is earlier, will be retroactively reimbursed if COBRA is elected. Claims can be submitted for reimbursement once you have been enrolled into the COBRA healthcare plan.
What will DBM/Outplacement do for me? Can I use them while I am still employed? Can you give me the monetary equivalent of their fees and let me find my own company? With a signed release, you are eligible for outplacement services through Drake Beam Morin (DBM). They will provide assistance in resume writing and job search skills, to name only a few services. We will not provide the monetary equivalent for this service.
How will my references be handled? All references will be handled through the Human Resources Service Center.
Am I eligible for unemployment insurance benefits and will severance pay have an impact on my benefits? You may be eligible for unemployment benefits and will need to apply with your local state Department of Labor to determine eligibility and benefits.
You are usually not eligible for unemployment insurance benefits during a period covered by severance pay paid to you by your employer. You can find your Department of Labor contact information with the additional resources below.
How is my vacation time paid? Any leave time that has been accrued and not used will be paid out in your final paycheck. Please reference CARE’s Employee Handbook for more information regarding vacation accrual and payout.
Page 2 of 3 What other benefits am I entitled to? We encourage you to use our Employee Assistance Program (EAP) as an additional resource during this time of transition. There is no cost to you and the service is available for six months past your final day on payroll.
Whom can I talk to if I have additional questions? Your main point of contact is your HR Business Partner and they should be able to assist you in most matters. Should you have more specific questions please contact the appropriate department.
I want to let colleagues know how to stay in touch. What’s the best way? To reduce email overload, we suggest that you post your contact info on the portal for all staff to access. Alternatively, you can email privately the individuals you would like to share your info with.
HR Business Partners: Division/Region +1.404.979-9XXX [email protected] Sergio Dorronsoro PQI, Finance Ext. 1526 [email protected] Nicole Lewis GAER, Executive Ext. 1158 [email protected] Wills Moore GSS & International Ext. 1393 [email protected] Nanette Cantrell GLOPS Ext. 1397
Additional resources: Human Resources General HR [email protected] Service questions Ext. 1511 Center 1.800.865.3200 Employee or Assistance http://www.horizoncarelink.com +1.972.420.779 Program (password: care; login: eap) 9 (collect from (EAP) overseas) CARE http://www.careacademy.org/Pages/SupportandResources.aspx Resources and Support CARE Career’s www.care.org/careers page 404.232.4290 Georgia (metro Atlanta) Department 1.866.873.5676 http://www.dol.state.ga.us/ of Labor (outside metro Atlanta) Department of Labor for www.servicelocator.org (click on “Unemployment locations Benefits Link” to find your nearest location.) outside of Georgia
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