Buyout Program

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Buyout Program

A program in which an employer asks employees to quit voluntarily in exchange for a lump sum payment, or a series of payments over a brief period of time. A buyout program generally is created when the employer is facing long-term financial difficulties. It releases the employer from the liability of continuing to pay salary, insurance, pension payments, and so forth. If a sufficient number of employees participate in a buyout program, the financial situation of the employer may improve sufficiently to avoid involuntary layoffs.
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Additionally, to assist North Carolina families still waiting to receive buyout assistance, Tillis legislation directs the Government Accountability Office (GAO) to undertake a comprehensive review of property acquisition or buyout programs administered by the Federal Emergency Management Agency (FEMA) and make recommendations on how to streamline and expedite delivery of funds to storm survivors.
Long after the rains stopped and floodwaters receded, thousands of Texans whose homes were flooded by Hurricane Harvey tried to participate in buyout programs that would help diminish the property damage of future floods.
As part of its fiscal 2019 budget, Illinois among other pension changes established two buyout programs that sunset in fiscal 2021, targeting budget savings by lowering accrued liabilities associated with employees hired before 2011.
Despite the obvious need and high demand, Harris County is plagued by challenges endemic to buyout programs: limited funds, competing priorities, strict criteria that place buyouts out of reach of willing participants, and the snail's pace of bureaucracy, which puts homeowners in limbo while creating opportunities for private developers to buy and flip flooded homes, perpetuating the problem.
Evidence of completed federal coastal property buyout programs from across the country shows that these types of investments pay for themselves within 10 years by permanently avoiding response, rescue, recovery, and repair costs from future floods.
The commission's report, which was released last month, recommends that home buyout programs be extended to all residents of New York State who are exposed to extreme weather risks arising from climate change, including those who live and work on the southern shoreline of Lake Ontario.
The Journal Communications-owned Journal Sentinel has not been immune from the industry recession, and has reduced staff with two voluntary buyout programs within the space of less than a year.
To avoid unfavorable tax consequences, employer-sponsored home purchase buyout programs should avoid contingent sales that allow employees to negotiate the terms of the final sale.
In the last two decades, governments at all levels started informal buyout programs as well, although Celia Boddington, a spokesperson for the U.S.
set by an $8.1 million pretax charge ($4.9 million, after tax) related to labor buyout programs in certain stores and at headquarters, along with $4.7 million in pretax charges ($2.8 million, after tax) associated with the third quarter refinancing and the repayment of a term loan in the second quarter.
More traditional services include: relocation process management, policy development, home marketing assistance, home buyout programs, home finding, household goods transportation management, expense tracking, mortgagee assistance, rental assistance and international destination services.
Since the Great Flood of 1993, FEMA has successfully implemented voluntary property buyout programs to relocate more than 20,000