Preparing for a job loss

**nuisance26** · 08-14-2011, 05:43 PM

~My DH was informed this week that his place of employment for the last 15 years would be ceasing operations within a year.
We weren't completely shocked by the news because there have been a lot of rumors flying around for months about plants being examined for closure. National level executives had visited DH's workplace several times over the last year.
The good news is that if DH stays to the closure, he will get 15 weeks of severance pay and Cobra coverage.
The company will also be offering jobs to people as they move operations. Unfortunately, this means that those accepting the jobs will have to move across the country.
My husband feels like he has a great chance at getting one of those positions but it would likely mean a move to Georgia or Colorado.
We're nervous about this upheaval. We're a bit worried that DH won't be offered anything and won't be able to find work. Mostly it's just scary feeling like we're starting out all over again.
But we feel financially prepared for this. We have a year of expenses in our EF and no debt but the house. With the severance, cutting back to one car and being very careful, we could stretch it to two years living here.
On one hand it's a relief that we finally know that they're closing and don't have to worry about rumors anymore. On the other hand, we really don't know much at all. It could be three months to closing, it could be twelve. They could offer 50 jobs, they could offer only 5. The jobs could be great with comparable or better pay or they could be a downgrade.
I'm excited about the possibilities of something new but if it means moving away from my parents it's going to be the hardest thing I've ever done. If you all remember, we were trying to get land near them to build a house on only a month ago. Now I know why we kept getting roadblocked from buying it. God knew we'd need our EF!
So, besides purging our stuff like crazy and fixing up the house to be ready to sell, what else should we be doing to prepare?
Insurance is a concern so I'm lining up appointments for everyone ASAP. We should have Cobra for 3 months at closure but I don't know what that coverage is like.
It's so surreal to think that so much is changing while, at this moment, nothing really has changed. I'm grateful we have time to prepare for it unlike so many others at his workplace who were just walked out of the building this year. Now all I need is a wealth of knowledge to get ready for it when it comes.~

**alotofgooddeals** · 08-14-2011, 05:48 PM

you sound very prepared....and of course is scary not knowing month to month whether you are going to have a position...but you have prepared and i bet while he is working you are gonna sock away as much as you can....Good luck!

**mh3rdwheel** · 08-14-2011, 05:55 PM

i hope for the best for you andyour family. sorry for the bad typing but i am holding tweety and i am typing with one hand.

**brenda67** · 08-14-2011, 06:03 PM

Oh noooooooo....when I read your headline my heart just sank..how in the heck is anyone suppose to feel secure at their jobs anymore! I've come to know you from reading your post over the years and I know you are a very organized/budget/ resouceful/save for a rainy day person.. that will serve you well with the coming changes in your life..another door is opening for you & yours now..HUGS..everything is going to be alright.

**Russ** · 08-14-2011, 06:05 PM

Sorry to hear, but at least you are somewhat prepared.

What does your husband do for a living?

**mamachop** · 08-14-2011, 06:05 PM

I'm sorry to hear about your DH's job! You sound like you've been preparing for this for awhile, it sound as if you will be okay when this does happen.

Lots of hugs and prayers being sent to all of you, it is not an easy thing to have to go through.

**alotofgooddeals** · 08-14-2011, 06:06 PM

you sound very prepared....and of course is scary not knowing month to month whether you are going to have a position...but you have prepared and i bet while he is working you are gonna sock away as much as you can....Good luck!

**alotofgooddeals** · 08-14-2011, 06:08 PM

Take nothing for granted and treat each week like its your last week of employment really puts things into perspective for me...I have a contract from september to june but after that...I have a feeling i can and might be in the same boat....i think all of us might be in the same boat within the next year or so...

Originally Posted by brenda67

Oh noooooooo....when I read your headline my heart just sank..how in the heck is anyone suppose to feel secure at their jobs anymore! I've come to know you from reading your post over the years and I know you are a very organized/budget/ resouceful/save for a rainy day person.. that will serve you well with the coming changes in your life..another door is opening for you & yours now..HUGS..everything is going to be alright.

**nodmicks** · 08-14-2011, 06:29 PM

I'm very sorry to read about your dh's job situation. I am so happy for you that you are so well prepared though. Sending calm thought and a prayer your way.

**NikoSan999** · 08-14-2011, 07:32 PM

Like the others said, between now and then get as tight as possible with the money. Maybe you could even squeeze out another month or two of living expense.

Other than that....COBRA...with COBRA your insurance will stay exactly the same as it is now. It won't change for the duration the have it, COBRA or regular. If you have $20 co-pay for doctor visit now you'll have it with COBRA. If you have $40 co-pay for prescriptions you'll still have it. It will all be exactly the same. So that's covered. Do you know if you have to pay for it or the company will. You're entitled to 18 months of keeping it by law but it is very very expensive.
Like you said, get everyones checkups now and maybe some prescriptions that you know will be coming. Do you need female type any time soon? Does it include dental? Eye exams? Do it now.

**frugalfoster** · 08-14-2011, 07:58 PM

Originally Posted by alotofgooddeals

Take nothing for granted and treat each week like its your last week of employment really puts things into perspective for me...I have a contract from september to june but after that...I have a feeling i can and might be in the same boat....i think all of us might be in the same boat within the next year or so...

This is the realization I came to a couple of weeks ago when I blew a disc in my back...I'm able to work again, even though the doctor is puzzled as to how I can..(it was a major disc extrusion laying against the nerve in my leg) I now have a new way of looking at things... when I consider a purchase i ask myself if this would be beneficial to me if I lost my ability to work tomorrow or would the money in the bank be....

It's funny that when something like that happens to you...it's almost a gift.. it really opens your eyes

**craftypam** · 08-14-2011, 08:44 PM

Niko; I'm not sure when you heard about cobra being really, really expensive. I was pretty sure what you said about the ins being the same, but waited until you stated it. They have made cobra more reasonable. A law was passed about it. I'm not saying cheap, but mine will be $400 a month and that is for prescription too. I know it used to be totally unaffordable. If I pay for b/c on my own it will be over $500 w/o prescriptions.

**NikoSan999** · 08-14-2011, 08:55 PM

Originally Posted by craftypam

Niko; I'm not sure when you heard about cobra being really, really expensive. I was pretty sure what you said about the ins being the same, but waited until you stated it. They have made cobra more reasonable. A law was passed about it. I'm not saying cheap, but mine will be $400 a month and that is for prescription too. I know it used to be totally unaffordable. If I pay for b/c on my own it will be over $500 w/o prescriptions.

I"ve been on COBRA twice. Last time was in 2003 and it was $900 a month then.
Yes, something since Obama has been in office I think. Daughter is Human Resources in a very large health care business. I think, and I do say think, it is 60 or 62% decrease but I think the employer pays the other portion. It's not a freebie. Really can't remember. I know we had a long discussion about it. Also I don't know how long the decrease is going to last. It's not a permanent thing but sure it will last thru her situation.
And unless something else has changed the longest you can stay on it is 18 months.

**Debbie-cat** · 08-14-2011, 09:03 PM

Oh nuisance, I am so sorry. One thing I have learned since joining FV is you are truly an inspirational, resourceful woman and if anyone had to survive through a job loss, I know you can. I hope your DH is offered a position and all will be good. Your faith will carry you through along with your EF. God bless you my friend and keep us posted! Hugs.

**Telephus44** · 08-14-2011, 10:06 PM

On COBRA, you may have to pay the entire portion of your insurance. For example, my health insurance is $1200 a month. We pay about $300 per month out of my paycheck. It's possible that on COBRA I'd have to pay the full $1200 a month. It depends on the employer - a lot of times if they are offering severance packages, it may include X amount of COBRA coverage. So yes, it can be insanely expensive, but it depends on how much your plan costs in the first place, what your employer is willing to offer. Also, some states will pick up a portion of the costs as part of unemployment benefits, but that varies from state to state.

Other than insurance, I'd just make sure to look at other benefits you have that you could max out. Is there an FSA to spend down? Do they offer employee discounts you can take advantage of? If they offer matching gifts for charitable donations, maybe make those now? I don't know who your DH's employer is, but I find that the larger the employer, the more often there are other benefits besides health insurance that you can use.