Conduent Severance Solution®

Generate savings through severance, while fulfilling your promise to employees

When an organization faces the difficult decision of separating staff due to shifting goals, financial expectations, a major disruption like the COVID-19 pandemic or any other reason, it’s not easy for anyone. But an expertly constructed, tax advantaged severance solution can help organizations save money, while delivering 100% of base pay during the severance period.

How it works

Through the use of a Supplemental Unemployment Benefit (SUB) Plan and Trust, organizations eliminate FICA taxes, creating tax exempt benefits for former U.S. based employees while simultaneously reducing tax liabilities for US employers, resulting in:

  • More equitable benefits across the population
  • Reduced windfall payments
  • Up to 40% savings for organizations

Reduce your administrative burden and redirect resources

Conduent’s Severance Solution is a fully outsourced service that allows employers to redirect severance resources in higher value ways — from increasing COBRA subsidies and providing outplacement services to extending severance payments for those who remain unemployed. The bottom line is more cash on hand to fund mission-critical expenses.

Turnkey services make plan management easy

We combine the expertise of compliance consultants, benefit advisors, administrators, customer care representatives, and technology specialists who will work to create a solution specific to your organization’s needs. Count on our experience and technology to make difficult transitions easier.

  • Advisory Services

    Design and manage plan

  • Communications Programs

    Educate former employees

  • Implementation

    Coordinate with payroll and HCM systems

  • Participant Support

    IVR, website and customer service center

  • Compliance

    Support state and federal guidelines

  • Full Separation Administration

    End-to-end management of the separation and/or furlough process

Avoid double payments, and stop payments on time

Severance payments plus state unemployment benefits can result in former employees receiving up to 150% of base pay in some states. Through a SUB Plan, an employer’s severance payment obligation can integrate with state unemployment insurance benefits to avoid double-paying former employees.

In addition, a SUB Plan provides proper coordination to reduce or stop payments when a former employee finds new employment or no longer needs salary replacement.

Key program advantages

  • Tax savings for employer and employee
  • Elimination of overpayments
  • Significant cash savings
  • Cash flow for new programs and/or enhanced benefits
  • Greater value to shareholders
  • Reduced administrative burden
  • More personalized support for former employees

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