Cashless Severance: Here's a Relatively New Way to Pay Off Departing Employees
- Topics:
- Accounting software,
- Human Capital,
- Layoffs
- Source:
- CFO Publishing
FREE Registration is required
Overview: Wherever layoffs take place, severance is sure to follow. And, as most senior financial executives know, severance could be a big cash drain for companies at precisely the time they are trying to conserve cash. One should not despair. A new method allows companies to save cash by restructuring the laid-off employee's pension benefit. Through a qualified severance arrangement, a few companies have increased pensions by the amount of the calculated severance package. Companies then save cash while still delivering the value of the severance benefit to the departing employee.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Jul 2001
