Payments are completed within two years of termination date. Also, there is no IRS Form 5500 annual filing required as long as the plan is unfunded. There appears to be no typical amount. Severance is very dependent on facts and circumstances. Some employers base severance on years of service and base salary, with one week of severance given for each year of service.
Most employers require the employee to sign a release in exchange for severance payments.
When an executive is hired, the executive and employer may enter into an employment agreement that, among other things, provides for some type of nonqualified deferred compensation or supplemental retirement income upon the executive s retirement or other termination of employment.