A Caged Bird HR® decision tool
PIP Math™
Stay on payroll or take the severance?
A PIP isn't a verdict. Know what each option could mean for your money before you make your next move.
1Your numbers
Leave blank to use today
Employer match you'd forfeit if you left today. Your 401(k) site lists it as the unvested balance.
When that money becomes yours to keep, often a work anniversary. Check your plan's vesting schedule.
2Run both paths over the same period
Comparison period: 9 weeks (Nov 3, 2026 to Jan 5, 2027)
Both paths are measured from your PIP start date to the same end date, so the totals line up. By default it covers whichever runs longer, the PIP or the severance.
Path A
Stay on payroll
Only count it if the payout date falls before your last day on payroll.
- Paychecks while on the PIP60 days of salary, paid on regular paydays through Jan 2, 2027
- $0
- 401(k) match on that payDeposited with each paycheck
- $0
- 401(k) money you'd get to keepAdd the date you'll own it to check
- $0
- Bonus or equity
- $0
- After the PIP endsAssumes no paycheck and no severance for the last 3 days of the period
- $0
Your usual employer health coverage continues while you're on payroll, through Jan 2, 2027.
Cash in this period
$0
Path B
Take the package
- Severance payWeeks × (salary ÷ 52). Paid as a lump sum or over time, per your agreement
- $0
- PTO payoutUsually on your final paycheck
- $0
Value of employer-paid COBRA: $1,450 (2.1 months of premiums). This isn't cash in your pocket. It's what the coverage would cost you otherwise, so it's not in the cash total.
Cash in this period
$0
Add your salary to start.
Totals update as you type. All figures are before taxes. More cash isn't automatically the better choice: weigh coverage, references, unemployment eligibility, and what you're asked to sign.
3Dates that change the math
- Vesting date: leave even a day before it and the 401(k) match you don't own yet can disappear.
- Bonus payout date: many plans require you to be employed on payday.
- Equity cliff: check your grant paperwork.
- Benefits end date: some coverage runs to month end, some doesn't.
- Unemployment: fired and resigned are often treated differently, depending on your state.
4Before you sign
- Get the offer in writing. Verbal packages change.
- Ask exactly what claims you're releasing.
- Negotiate weeks, COBRA, reference language, and your end date.
- Have an employment lawyer read the release first.
Want help running your numbers?
Estimates only, before taxes. Not legal, tax, or financial advice. Caged Bird HR® · Better Work, Better Life.