Severance Agreement Form With Cobra In Palm Beach
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FAQ
Neither the California Labor Code nor the federal Fair Labor Standards Act require employers to offer severance agreements to departing employees. Instead, severance agreements are provided by employers to accomplish a specific goal.
Eligibility for Retiree Health and Life Insurance Benefits Rule of 70: the employee's age plus years of continuous, full-time service equal 70 or more, and the employee is at least age 55, with at least ten years of continuous, full-time service.
You and your employer must follow certain legal formalities for a severance agreement to be enforceable. You must ensure that the agreement is in writing and that your employer has signed it. Sometimes, you might also need a witness or have it notarized. Failing to adhere to these formalities can void the agreement.
Extension of Benefits Under Rule of 70 To be eligible to retire, you must be at least age 55 with 10 years of service or age 65. Years of service for the “Rule of 70” eligibility purposes, means total years of employment from date of hire to date of termination.
COBRA, a federal law, applies to companies with 20 or more employees and allows former employees, spouses, and dependents to maintain their group health plan for up to 18 months, with possible extensions under certain circumstances.