FAQs: Severance Payment

1. I received salary and severance from the same employer. Can I combine these?

Yes. You may write the phrase “salary and severance” and provide the combined amount of the income that you have received from this employer. However, do not combine salary with a severance payment that you have not yet received (a “severance receivable”). Salary and a severance receivable need to be reported as two separate line items in the report.

2. My employer has not yet fixed the amount that I will receive. How should I value a severance receivable for purposes of Block B of Schedule A?

If you are a Presidential nominee for a position requiring Senate confirmation, you normally will need to fix the amount before you can complete your financial disclosure report. Contact your agency’s ethics official if fixing the amount before you complete your report does not appear to be possible.

If you are a current government official who is completing a “new entrant” report, you should be aware that, in some circumstances, a criminal statute places restrictions on certain payments to government officials. In that case, contact your ethics official immediately and before you receive the payment, in order to determine whether you may receive the payment.

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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