FAQs: Severance Payment

1. I received salary and a cash severance payment 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”).  Report salary and a severance receivable as two separate line items in your report.

2. My employer has not yet fixed the amount that I will receive.  How should I value a severance receivable?

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.  Contact your ethics official in order to determine whether you may receive the payment.