Home < News <  Voluntary Separation Program < FAQs < Answers

FAQ: Severance Pay Questions

When will I get the severance payment?

If you are age 40 or older, you will receive your severance pay at or shortly after the later of (1) the end of your seven (7) day revocation period (if applicable) or (2) your separation date.

If you are under age 40, severance will be paid at or shortly after the later of (1) your signing the release or (2) your separation date.

Will taxes be withheld from the severance payment?

Yes. Usually Federal, State and FICA taxes (if applicable) are withheld from severance pay at a combined rate of 37 to 40 percent.

How can I estimate how much severance pay I would get?

See page 2 of the Plan Document or the Service and Severance Calculation document to see how your severance payment will be calculated.

If I don't take the Voluntary Separation Program and later get laid off, will I get severance?

If you are involuntarily laid off, you may be eligible to elect to receive severance pay in the amount designated in the current contract or policy.

Why is the severance amount for the PSS group less than that for the MSP group?

The severance amount in this voluntary program is modeled after the policy for involuntary layoff. In that policy, the PSS group has other rights that MSPs don't have. See the policy for more information.

Do years of service for calculating severance include only years at UCOP or any UC years of service?

All of your UC years of service are counted provided you have not had a break in service. UC service prior to a break in service is not counted for calculating severance.