PBPost Buyout and Retirement Q&A

General Questions

(check back for updates)

Q: Will the company provide any help with tuition, etc. for job re-training for those who take the buyout or are laid off?
A: Per Linda Murphy, No help with tuition but we are coordinating with Workforce Alliance who have re-training programs. Note that some have called EAP – which offers nothing as far as job training or referral.

Q: What is the meaning of employees being “reasonably available” to provide help assisting with their former jobs after taking the buyout package?
A: According to Linda Murphy, this refers to the period between acceptance into the buyout pool and termination. She said it does not refer to the period after we leave.

Q: Will the company continue to provide legal counsel to employees named in lawsuits as a result of their work?
A: Per Linda Murphy, yes.

Q: Will the employee discount for subscriptions continue?
A: Per Linda Murphy, no, unless you are retiring.

Q: If employees are forced to transfer from the Treasure Coast to the main office to maintain employment, will they be reimbursed for mileage or travel time?
A: Per Bill Rose, probably not, but there could be some discussion of the issue if that happened.

Q: Can employees buy their cell phones from the company and keep their numbers?
A: Per Ken Steinhoff, no, but employees can sign up for cell phone service with the employee discount as long as they are employed.

Q: Will pledged donations to United Way be taken out of paychecks through the end of the year for the buyout employees?
A: Per Linda Murphy, no. As a side note, I would encourage you to make good on your pledges.

UPDATE: Q: What happens to the Christmas Club money if you’re having it taken out of your paycheck?

A: Per Linda Murphy: Money for the club will be taken out through Aug. 7; Christmas club checks will be available Aug. 29.

Q: Can employees buy their laptops from the company?
A: (No answer yet) Has anyone heard anything on this?

Q: Will the company provide clips to employees who need them for job searches?
A: Per Bill Rose, yes.

Q: The separation agreement and release says, “Employee understands and agrees that employee may not be reemployed by the Company for a period of one (1) year following the Resignation Date.” Can I sell stories or columns to the company on a freelance basis within a year of the buyout without violating the agreement?
A: Per Linda Murphy, if freelance is approved, yes.

Q: If I apply for a buyout and I’m turned down, am I safe from future layoffs if the company decides in three months or six months that more cuts are needed?
A: Per Bill Rose, no. People who are turned down on their buyout applications this time around are safe from the first layoff pool. But if there are future layoffs, you would be included in that pool. It is unknown what, if any, buyouts might be offered if there is another round (or rounds) of cuts.

Insurance

Q: For employees who are more concerned with insurance coverage than a large cash payout, is there any room for negotiation on the package?
A: Per Linda Murphy, no.

Q: If you don’t use the money you’ve contributed to your flexible spending account, will you lose it?
A: HR: You can only use it for COBRA expenses. If you get insurance from another employer, you can not use it on those expenses. You will lose it.

Q: Will the company consider allowing employees to continue COBRA coverage beyond 18 months?
A: Per Linda Murphy, no, not at this time.

Q: If you’ve spend more money than you have contributed to your flexible spending account will it be taken out of your last check?
A: No. The company eats it.

Q: What if I get another job that has medical benefits? Can I say no to Cox’s retirement medical plan, then sign up for Cox’s plan when I quit that job?
A: Sandi: What you should do is take the Cox plan from the start. It’s one of the best anywhere; it’s a good idea to be grandfathered in — Cox has never taken it away from people who are grandfathered in. They have changed it in the past, for those who haven’t retired yet.
But if you have another job or you are covered by a spouse, you can waive coverage, yet still be enrolled, then sign on to coverage as you need it.

Q: What about life insurance after we leave?
A: Life insurance drops to 1X your salary, then decreases in increments annually until it reaches 0 at age 65. (In other words, it’s a term-life policy.)
You can convert to a whole life policy but, according to Sandi, it’s frightfully expensive, and probably a last-resort for those who can’t qualify for life insurance in the outside world because of a pre-existing condition. No qualifying exams are needed for this insurance.
There is a $5000 policy that comes with the pension pay out.

Q: What about prescription coverage?
A: It stays the same. $20 for generic (mail order) and $40 for brand name drugs (mail order). Discounts still apply at the drug store counter. In fact, it serves as Medicare Part B – and is better than any supplemental insurance out there, allegedly. This, according to Sandi.

Money Matters

Q: Can those of us over 50 increase our 401K contributions between now and termination under the “catch up” rule?
A: Per Linda Murphy, no.

Q: If I have been here for five years or more and leave in August, how will my pension be paid?
A: From Sandi Schofield at CEI in Atlanta: The Cox pension is based on salary and years of service. Cox uses a complicated formula to determine whether the benefits you have accrued are worth more or less than $5,000, so it is not possible to calculate yourself. Basically, the value is the amount that someone of your age would have to pay on the open market in order to buy an annuity that would provide the same monthly benefits as the pension.

If that value, as determined by Cox, is less than $5,000, it must be paid as a lump sum after you quit or are laid off. You are not eligible for monthly payments at retirement. If the value is more than $5,000, you are not eligible for the lump sum and must wait until your retirement age to begin collecting monthly benefits. If you have been here less than 10 years, retirement means age 65. If you have been here for 10 years or more, you are eligible for early retirement and can begin taking a reduced amount at age 55, if you choose.

The pension payment rules apply to everyone with at least five years of vested pension service. It doesn’t matter whether you take the buyout, are laid off or quit. You still get paid.

Cox will provide individual quotes on pension value to anyone who wants one. HR doesn’t have these figures; you must get in touch with Atlanta. The contacts are Greg Shosnik, 678-645-0122 or Greg.Shoshnik@coxinc.com; or Sandi Schofield at 678-645-0121, Sandi.Schofield@coxinc.com.

Q: How will the lump sum be taxed?
A: Per a member’s financial adviser, it will be taxed as regular income.

Q. Can I defer my pension?
A. Sandi Schofield: Yes, but if you’re 55 or older, you will lose your chance at the Cox retirement medical plan.

Q. If I work for some other Cox venue, will my pension grow?
A. Sandi Schofield: Yes. It will be recalculated every year. (It’s a complicated process to determine amount: see above listing on pension calculation.) It’s based on the last 72 months of earnings. If your earnings go down, however, your pension remains the same: They will never cut the pension. They may increase it, but it will never go down.

Q: If I am bought out or laid off and the company decides to rehire people a year (or more) from now, will I retain my years of service for pension and vacation purposes?
A: Per Linda Murphy. For pension, yes, you would pick up where you left off. For vacation you would negotiate at the time of re-hiring.

Q: Will buyout lump sum money have taxes taken out? What kind of bite will that put on us for April 2009?
A: A financial planner says: The buyout money we receive will have taxes taken out.
The taxes will be based on your current salary, however, and not on the tax base you’d be at with essentially 2x the money in one year (based on those getting the maximum 52 weeks of pay). The financial planner says, however, it’s a fairly small percentage that we’ll incur above a normal tax base 8 percent, and by setting aside that percentage amount in increments, April would be manageable for most of us.

Also keep in mind that your 401K deductions would end with termination and for most, that would mean my taxable pay would be up to 15 percent higher for the rest of this year and the lump sum. And keep in mind that 19 of those weeks (from Aug. 12 to Dec 31) will be paid as if you were working this year, so even with the maximum payout, the lump sum will be 33 weeks (plus vacation).

Q: Can I keep my 401k in Vanguard? Can I add to it?
A: You can add to it only until Aug. 12 or your separation date. After that, you cannot add to it at all. You can leave it in Vanguard and move the money around in Cox plan choices only. (You can roll your 401K into an IRA it if you choose — make sure the rollover check is written directly to the IRA and not to you. Taking the check yourself will result in a hefty tax bill if you don’t move quickly enough into the IRA.)

From a financial planner: To have much more flexibility with it, you should move it to an IRA: also tax-deferred, but available as a liquid asset at your choosing – as long as you pay taxes on what you remove.

The rules are if you leave it in Vanguard as a 401k, and decide to remove money, you must choose to remove it monthly, quarterly or annually in a percentage up to your age of 70 ½ when you must begin taking it (it’s law). If you choose to take it out in increments, you cannot change the frequency once you set it. Monthly remains monthly forever until all is removed. With an IRA (which you can convert to under Vanguard, if you want to stay with them) you can remove it at will, and as much as you choose – no percentage required (you pay tax on what you take out). See a tax person or financial planner for more information about IRAs and other deferred-tax info. (Anything you take out before retirement age is taxed.

Something to Remember

One thing Sandi Schofield from Cox corporate stressed: Notify Cox whenever you move! There are countless numbers of people who aren’t collecting their pension or getting insurance due them because they can’t be found.

Do You Know Something We Dont?

The chances are very good that you know stuff. After all, it’s your job. If we missed something, please comment below and we’ll incorporate into the document above.