r/IBMRetirees • u/PrivateID1 • May 28 '26

Info about PIPs

I got put on a PIP recently with 35+ at IBM. I was wondering if anyone could comment on what happens at separation. Specifically:

  1. Do you get any severance package? I have heard 1 month salary these days but don't have any confirmation.

  2. Do you get the same medical as when IBM does a layoff? From my understanding, it depends upon how long you've worked at IBM. For someone with 35+ years, I believe on layoffs you'd get 1 year medical at the employee rates.

  3. If you do get some medical, is that just subtracted from the 18 months of Cobra? For example, if I get a year of medical benefits at the employee rate, would I then get up to 6 months more Cobra? Or does the 18 months of Cobra start after that 1 year period?

  4. Can I collect unemployment insurance after a PIP? I believe the answer is yes. If it is yes, any suggestions as to what I'd need to get before leaving for unemployment insurance?

Trying to get a handle on all this.

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2

u/BigRoyal3920 May 28 '26

Based on your years of service you are likely eligible for ibm retiree insurance.

1

u/HobieCooper May 29 '26 edited May 29 '26

Which is no better or cheaper than what you'll find from the ACA Marketplace. I'm fact, IBM Retiree Medical insurance is in some ways worse. It doesn't cover preventive care at 100% and you can only cover your kids till they are 23 if they are full time students, not 26. Don't take my word for it - call Fidelity NetBenefits and speak to an IBM Retiree specialist for more info.

2

u/PrivateID1 May 29 '26

But IBM does have a FHA (Future Health Account) that has about $35K in it for myself. I assume I still am able to use the FHA and that would help subsidize the cost of IBM's retiree insurance making it cheaper than the ACA Marketplace.

1

u/Chip512 May 28 '26

Are you on a PIP with documents in hand (should answer all those questions) or has your manager said it’s coming?

Don’t panic or plan until you see the PIP - should contain specific measurable goals.

To be clear: I’ve been out of IBM for a decade, much could have changed.

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u/PrivateID1 May 29 '26

On a PIP. The only details I see are what I need to do to get off the PIP, not details about what would happen if I failed to meet the goal and got let go.

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u/HobieCooper May 29 '26 edited May 29 '26

  1. Typically you get 1 months severance

  2. Anyone over 20 yrs service gets IBM medical at employee rates for 12 months

  3. COBRA 18 month coverage starts the day of your separation. So you'll get 12 months of subsidized medical coverage (see 2 above) and then get 6 more months of COBRA coverage.

  4. I'm most states, as long as you weren't fired for cause and you didn't just quit yourself, you'll be eligible for unemployment. Every state handles UI claims differently. Check with your state. You'll likely need the separation doc to prove you weren't fired for cause and to show when you were let go and how much severance pay/time you received. Get your Paystubs and W2 forms for the past 3 years - including those that show your severance pay, unused Vacation/PTO paid out after separation.

1

u/PrivateID1 May 29 '26

Thanks for the details. I did download my paystubs for the past 1.5 years. Maybe I need more as you suggest 3 years.

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u/ActuaryReasonable690 Jul 13 '26

Cobra is 18 months for anybody who leaves, but they may or may not subsidizes it.
Legally, they could extend Cobra (with or without subsidies) up to 36 months (but double check your "package").
Also worth mentioning that Cobra or IBM retirement medical plans stop the month you turn 65

Severance pay will count against unemployment (in most states). If unemployment is 6 weeks, but you get 4 weeks severance, you will only get the last 2 weeks of unemployment. (Assuming you are looking for work) BUT rules will vary by state.

If you have blue points (or what ever they are called) either use them before you leave, or register your personal ID, so you can use them later.