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posted on Dec. 16, 2009 by Steve
When the Company determines that the immediate exercise of available force adjustment rights by an individual or group of individuals would endanger network quality, compromise skills and knowledge necessary for the maintenance of good customer service or create safety issues, the Company may choose to defer the right of such individual(s) to exercise force adjustment rights. Any bargaining unit employee who is impacted by such limitation of force adjustment rights and subsequently laid off shall receive an additional 15 weeks of termination payments under paragraph D- 12.20 of the current agreement. If an employee so impacted, chooses to receive continuity payments the Company will agree to implement agreed upon payment options which extend available compensated weeks, if such a payment option is requested by the impacted employee. An employee who has his/her force adjustment rights deferred, is laid off and chooses to receive continuity payments under the Employment Security Letter Agreement, may participate in available Company provided training opportunities to prepare the impacted employee to perform duties in an identified position with the Company. An employee who completes afforded training will be eligible to exercise his/her deferred force adjustment rights and assume an identified position with the Company at a time and location deemed appropriate by the Company. Training necessary to facilitate deferred force adjustment rights will be implemented by the Company as soon as is practical.
Employees, who have their force adjustment rights deferred under this agreement, shall receive monthly payments equal to the applicable COBRA subsidy for continued Medical coverage for a period of up to 12 months from the date of their layoff or until the date of deferred force adjustment, whichever occurs first.
The administrative impact of deferred force adjustment rights will not be different than the administrative rights agreed upon by the parties as part of 2008 contract negotiations and the application of deferred force adjustment rights will be considered the implementation of force adjustment rights, not a recall.
The provisions of this arrangement will expire with the current collective bargaining agreement.
10 in Network Ops (3 COA, 4 CO Techs, 1 Network Tech, 2 Tech Clerk 3)
18 in Field Ops (1 FAC Clerk , 1 Outside Plant, 11 Splicers, 2 Systems Tech,
3 TC)
General Separation Questions
If I take the voluntary offer, do I need to sign any documents/forms?
Yes, you will be provided with a Voluntary Separation Severance Calculation sheet which must be signed and returned to Human Resources by one of the following methods:
Fax to Human Resources at 1-866-926-3490
Scan and email to Labor.Relations@cinbell.com (be sure to include VSP in your subject line); or
Hand deliver to
DO NOT MAIL OR HOUSEMAIL YOUR FORM!
Remember, the document is time sensitive and will require a signature for severance payout. If Human Resources does not receive your signed Voluntary Separation Severance Calculation sheet prior to
When will my last day of employment be communicated to me?
Upon receipt of the signed Voluntary Separation Severance Calculation sheet, Human Resources will compile names of the employees that have elected to participate in the Voluntary Separation Program and disseminate the names to the applicable departments.
The department will determine your departure date. Please note, there is no minimum notice period required in providing your departure date.
If I take the Voluntary Separation Program (VSP) am I eligible for recall or rehire?
You are not eligible for recall if you accept this VSP offer. You can apply to be rehired by Cincinnati Bell in your current position or any other externally posted position for which you are qualified. However, if you are hired into an hourly, bargained position your wages, working conditions, and benefits will be determined by the Agreement for bargained employees hired after
If I do not take the voluntary offer and then I am selected involuntarily to separate from the Company, due to a force adjustment, would I still be eligible for the voluntary separation offer?
No, the Company would apply the language in the Employment Security Letter Agreement and provide termination allowance under D-12.20.
Bargained VSP January.2010
If I quit or I am terminated for cause before I am separated through this VSP offer, will I still receive the lump sum?
If you resign or are terminated for cause before you are separated through this VSP offer, you forfeit the Voluntary Separation Package in its entirety.
If I have accrued and unused vacation, will it be paid to me? If so, when?
Participating employees will receive payment of all unused vacation from the current year (including EDP days) and any unused vacation carried into the current year. All payments will be included with your final paycheck the form of a live check mailed to your home address.
I understand that the lump sum payment is taxed higher than our normal income tax rate. Is there a way to be taxed at my normal tax rate?
No. The severance payment is considered supplemental wages and is taxed at a higher rate. (See IRS Publication 15, Circular E, the Employer's Tax Guide)
What withholding rates apply to my severance lump sum?
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Federal Income Tax
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25%
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Social Security
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6.2%
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Medicare
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1.45%
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State of
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3.5%
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City of
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2.0%
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City of
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2.1% (if you work in or reside in
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If living in states other than
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|
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State of
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Aggregate Method
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State of
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3.4%
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When will I receive the severance money if I elect to participate in the VSP?
Payments will be made with the pay cycle following your departure date. For example, if your last day with the Company is
Will the lump sum be directly deposited into my account?
No, the lump sum will be a live check and it will be sent to your address on file. Further, your final paycheck will also be a live check. Please be sure that myHR reflects your current address before you are separated. If your address needs to be changed you will need to fill out a Change of Address Form (available on Connections).
I understand the deduction of taxes from the lump sum, but what about any other supplemental deductions, i.e.; 401k, supplemental insurance, Cintel, etc?
The lump sum payment would only have the appropriate taxes deducted from the gross amount. No other deductions would be taken from the gross amount.
Is my severance treated as income thereby placing me in another tax bracket?
Yes, severance is treated as a continuation of wages earned. A higher tax bracket is a possibility.
How can I get my YTD check stubs for tax purposes, after I am separated?
Your final paycheck will include YTD totals on the pay stub. All other pay stubs can be printed from myHR prior to your departure. Once your employment has there will be a fee of $5.00 for pay stub copy. A check for the paper copies should be mailed to the payroll office:
Payroll Office
What is the difference between my W-2 and W-4?
A W-2 is a statement of your earnings that is mailed at the close of each calendar year. A W-4 is the form on which you confirm dependents and any additional federal tax that you want to be deducted from your paychecks.
Can I defer my severance lump sum into a retirement plan, such as 401k?
No. Severance dollars cannot be rolled into the savings or pension plan.
Can contributions to my 401k be made from my severance lump sum?
No.
What is the retirement eligibility criteria?
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Age
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Service
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Any
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and
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30 years
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50
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and
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25 years
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55
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and
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20 years
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65
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and
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10 years
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There is a separate Summary of Benefits at Retirement that is applicable to you if you are retirement eligible. This document is available on Connections. You can also contact the Benefit Office for additional information.
How long is the restriction on working for a competitor in effect?
If you are retirement eligible, there is an 18-month non-compete provision; a 1-year Non Compete Agreement (NCA) binds all others.
Employee Benefits
A Summary of Benefits at Termination has been included in your packet to provide you with more detailed information regarding what happens to the benefits you had as an active employee. The following is only a brief summary intended to address frequently asked questions.
Will medical, dental and vision coverage be provided to me?
You will be covered under Cincinnati Bell’s plans through the end of the month, in which you are separated. You may continue your medical (including prescription drug coverage), dental and vision coverage under COBRA; however, you must enroll by returning the forms that will be sent to you by Mangrove. Coverage is not automatic and our providers (Anthem, Walgreens and/or EyeMed) will not recognize your coverage until you have enrolled and required premiums are paid.
Is there a lapse in my health care coverage?
Your coverage is not considered to be continued until you have completed and returned the required forms and made payment. This means that services you receive after your coverage as an active employee ends and before your first COBRA payment is received by Mangrove may be denied. Coverage is retroactive if payment is remitted within the appropriate timeframe so any denied claims should be resubmitted for processing.
Who do I contact if I do not receive my Cobra forms from Mangrove?
You should contact the Benefits Office at benefitoffice@cinbell.com or 513.397.5999.
How long can I continue coverage under COBRA?
COBRA generally provides for up to 18 months of coverage continuation. You must return your COBRA forms to Mangrove Employer Services to elect coverage and pay the required premiums. COBRA is not automatic.
Who pays the cost of coverage?
You pay the cost of continuing coverage through COBRA by paying your monthly premiums directly to Mangrove Employer Services. Cost information under COBRA can be found in the Summary of Benefits at Termination.
I’ve heard that under the Stimulus Bill, I do not pay the total cost of coverage for COBRA.
The American Recovery and Reinvestment Act of 2009 (the “Stimulus Bill”), which became effective
Can I downgrade to lower/cheaper coverage group once the company stops paying for Cobra?
No, you cannot change your medical plan election under COBRA. You can continue to make changes only in the event of a life event, no different than an active employee.
When will my company paid and employee paid life insurance coverage stop? What are my options?
Life Insurance, AD&D and any Dependent Life insurance you have in force at termination ends on the last day of the month in which your employment ends. However, you have the opportunity to continue your current Prudential basic and voluntary coverages. If you are interested in continuation of coverage, you must request continuation within 31 days of your coverage termination. See the Summary of Benefits at Termination for more information.
Do I lose my telephone concession and other employee discounts once separated?
Employee Telephone Concession as well as other employee telephone discounts, such as Fuse, Zoomtown and wireless employee plans, cease on your separation effective date.
How does my separation impact tuition reimbursement?
Applicable Tuition Aid coverage will continue for any class in which an employee is currently participating, as of the separation date. The Tuition Aid Plan will not cover any class, which commences after the separation date, which would otherwise be covered.
Company Savings and Retirement Plans
How will Fidelity know that my service with
Cincinnati Bell automatically notifies Fidelity of your termination as part of payroll processing.
Can I continue to make 401k contributions if I am separated?
Continued 401k contributions of any kind are not permitted.
Can I keep my savings in the 401K plan if I am separated?
If your account balance is more than $1,000, you may choose to have your account distributed or you may choose to defer distribution to a later date. If your account balance is $1,000 or less it will be distributed automatically by Fidelity.
Can I request a distribution of my 401k?
If you are a participant in the Cincinnati Bell Savings and Security Plan, you are eligible to receive a full distribution of your account balance in the Plan. Generally, your savings plan balance is available for distribution once the final contribution has been allocated to your account.
How do I contact Fidelity?
To initiate a distribution or explore all of your available options, contact Fidelity through their web site www.401k.com or call Fidelity directly at (800) 835-5095.
If I have a loan or loans against my 401k will they come due on the date that the layoff occurs?
It generally takes 2 months for loans to go into a default status. Loans can be paid in full at anytime. If not paid off they will be treated as a taxable event and you will receive information (generally a 1099R) from Fidelity to report when filing your tax return.
If I choose to leave my 401k assets with Fidelity, will I incur administrative charges because I am no longer employed at
There is no difference in any charges between an active employee and terminated employee.
What happens to my benefits under the Pension Plan if I accept the VSP?
If you leave under the terms of the Voluntary Separation Program, your service will be reviewed to determine if a benefit is payable. If a benefit is due, you will receive a pension packet. The election form, included in the packet, will indicate the applicable return date in order for payment to commence. In general, packets are generated between 60 and 90 days following the end of the month that the layoff occurs. All forms of payment are made by the Bank of New York at the end of each month. Please read the Summary of Benefits at Termination to learn more.
How do I request pension plan information if I am considering taking the VSP?
If you are eligible for a benefit from the Cincinnati Bell Pension Plan and you would like additional information about your pension benefits, please e-mail the Benefit Office at benefitoffice@cinbell.com. Include your name, mail location, and your employee identification number, which can be found on your VSP Calculation sheet. Upon receipt of your email, we will request an estimate from our actuaries.
Note: If you can not locate your employee identification number, please call the Employee Relations hotline at (513) 397-1049 for assistance.
Where will my pension information come from?
Estimates and pension packets are prepared by our actuaries, Buck Consultants. The contact number for Buck is (800) 487-7211.
Where can I find out more information about benefits available to me at termination?
There is a Summary of Benefits at Termination available on Connections via the HR homepage as well as the copy that was provided with your VSP information.
If you have additional questions, you can contact the Benefit Office through email at benefitoffice@cinbell.com. or by calling 513.397.5999.
What happens to my Company-owned stock through ESPP?
If you were a participant in the Employee Stock Purchase Plan, your participation in the plan ends at termination. You must sell or otherwise withdraw your shares from your account. To do so, access your Company stock plan account online through www.optionslink.com or call 1-(800) 838-0908.
What happens to my Company Stock Options that were previously granted?
Your options are cancelled after three months, following your separation effective date.
Are there any benefits provided by the Company to employees that elect to participate in the VSP such as placement services, job training, etc.
The Company will not provide these services directly. However, employees that elect to participate in the VSP will receive a one-time, lump sum payment in the amount of $3000 that can be used for these services. Employees can utilize this payment as they choose. This payment will be subject to applicable taxes.
How do I apply for unemployment compensation?
To apply, you may visit the unemployment office, call 1-877-OHIO-JOB (1-877-644-6562) or go online.
Will receipt of severance pay affect my eligibility to apply for and receive unemployment benefits as soon as employment ends?
Unemployment benefits are determined by the State.
How is severance calculated?
Your severance amount equals two weeks of base pay for each year of completed company service (NCS). Years of service are rounded up at 6 months. For example, if you have 5.5 years of service your severance will be calculated on 6 years and you will be provided 12 weeks of severance payment.
$weekly pay rate * years of service = Severance Amount
(Minimum severance based on 4 weeks; max severance based on 52 weeks base pay)
Click on the first block "Non-Medicare Eligible Retirees" this will bring you to Non-Medical Eligible Retirees Page, scroll down page and click on FAQs and Mailings, this will bring you to FAQs and Mailing Page, scroll down to Acrobat.pdf file, click on "Thinking Forward" Booklet for Non-Medicare Retirees
This Page was last updated on
12/16/2009