Severance Package

[rduell]

Has anyone ever heard of a severance package for anyone that resigned from the job willingly?

A pastor of a church in our town announced that as of May 27th he was stepping down as pastor of that church. The district is now saying that the church owes the pastor 3 months worth of pay and continuance of his medical coverage for those 3 months. He is not moving on to another church. They are going to stay in town and continue to live in the house they built here. I don't know if the church is also obligated to continue paying their utilities for this time also, as they have been doing.

I thought severance packages were just when your job was being phased out or something along that line, not when you voluntarily leave. This just doesn't seem right to me.

[sweeps]

By definition, yes, severance is paid only when you're terminated. Maybe this wasn't a resignation but a layoff/firing in disguise?

[lgslgs]

I've seen a number of severance packages go to folks who are "leaving to pursue other interests" - usually when there is a downsizing, firing, or reorganization in a company that wants to keep that sort of thing quiet.

Lynda

[thekid]

Outside of particular stipulations to this effect in an employment agreement or termination agreement, no severance obligations would arise (or should arise, it depends on your state law) if he did in fact leave voluntarily.

Even then, it is extremely rare to find severance clauses in those agreement in cases of voluntary departure.

My guess is that he was either asked to leave or his employer is very very nice.

[rduell]

By definition, yes, severance is paid only when you're terminated. Maybe this wasn't a resignation but a layoff/firing in disguise?

No, this was definitely a resignation. The church leadership did not ask him to leave, he voluntarily resigned. And if the District had asked him to leave the leadership would have known about it. That's why I do not understand why the district says that he is entitled to a severance package.

[creditcardfree]

Did the pastor sign some sort of agreement stating he would receive a settlement regardless of the reason he left or was terminated? That would be the only logical reason to me.

[rduell]

I found out the answer by emailing the church treasurer (friend of mine).

The district holds a district conference each year and the attendees (mostly pastors and spouses) vote on various things. A couple of years ago they voted to make it a district-wide rule that any pastor who resigns or is asked to leave be given a severance package by the church.

Seems very wrong to me. It's like politician's voting on their own pay raise. Oh well.