What is the Nissan Voluntary Separation Plan?
The Nissan North America 2024 Voluntary Separation Plan (VSP) is tailored for its manufacturing salaried employees. The goal is to streamline operations, enhance workflow efficiency, and better position the company for future industry challenges. The plan offers eligible employees an attractive separation package, allowing them to transition smoothly while providing Nissan the flexibility to restructure its workforce effectively.
Who is Eligible for the Nissan VSP
The VSP is available to some salaried and manufacturing employees aged 55 or older as of December 31, 2024. Eligible employees will be notified directly and must elect to participate by 5:00 p.m. Central Time on August 1, 2024. The decision to participate is voluntary, and employees can revoke their election within the designated period.
How is the VSP Calculated?
A participant in the VSP will receive a separation pay package, the greater of:
- Three weeks of base pay for every year of service.
- $25,000 for employees with less than 10 years of service.
- $50,000 for employees with 10 or more years of service.
Remember, all payments will be treated as W-2 income, meaning you will pay taxes on your VSP payout for your 2024 tax return.
How is Healthcare Treated?
Additionally, each participant will receive a $10,000 healthcare allowance, which can be used for various healthcare-related expenses, including purchasing COBRA coverage. Payments are capped at the lesser of two times the prior calendar year’s earnings or $690,000.
Participants will have the option to continue their healthcare coverage through COBRA for up to 36 months. Eligible retirees may also opt for retiree healthcare coverage if they meet the necessary requirements.
Employment Separation Date and Lump Sum Payout
If an employee elects the VSP and it is approved separation pay will be disbursed as a lump sum within 90 days of signing a Confidential Voluntary Separation Agreement and Release. Participants will work with their managers to determine their Employment Separation Date, which will fall between August 16, 2024, and December 31, 2024.
Retirement Consultation for Nissan Employees
If you need further assistance determining if the VSP is right for you and your family, contact First Family Wealth at (615) 615-0361. If you would like to schedule a complimentary consultation, you can book time on my calendar at this link.
About the Author: Daren Chamblee
A financial advisor based in Murfreesboro, Tennessee, Daren Chamblee has nearly 15 years of experience in the industry serving clients through financial and retirement planning. Daren specializes in working with employees of Nissan North America, and he currently has more than 200 clients who are current or retired Nissan employees, giving him unique insight into the financial and retirement challenges they face. You can schedule an initial consultation with Daren by clicking here.
Investment Advisory Services are offered through First Advisors National. Financial planning services are offered through First Family Wealth. First Family Wealth and First Advisors National are not endorsed, retained, or affiliated with Nissan.
