Terminated Employee FAQ
Updated Feb. 12, 2013
- Why did the Company liquidate?
We deeply regret taking this action. Widespread strikes by the Bakers Union forced us to cease operations on November 16, 2012 because we could no longer produce or deliver product.
- How long will my job continue?
With the exception of those who are remaining to help with the Wind Down, the employment of all Hostess Brands employees was terminated as of November 21, 2012.
- Have all positions in the Company been eliminated?
A small number of positions will continue for a set period of time to complete the Wind Down of the business. People in those positions have already been notified. Everyone else's employment has been terminated.
- When will I receive my last paycheck?
You will be paid through the date of your termination, November 21, 2012, in accordance with the normal payroll schedule. Employees who receive their pay through direct deposit will continue to have their pay deposited directly into their designated bank account and the check stub will be mailed to their homes.
- Who can I contact if I do not receive my last paycheck in the mail?
Call the AskHR Help Line at 1-800-HOSTESS or email email@example.com.
- I don't have a computer or any access to the Internet. How can I access the website?
Your local library should have computers available that you can use, and library staff can assist you if you are not familiar with use of the Internet. You may also have friends or neighbors who can provide Internet access and assistance.
- I have submitted expense claims that have not been paid. How do I get reimbursed?
We received Bankruptcy Court authority to use our lenders' cash collateral to pay valid expense claims.
- Will I be paid for unused vacation time?
Unfortunately, unused vacation time will not be paid out at this time; funds for these amounts are not in the Wind Down budget that our lenders approved. The Company is proposing to allow administrative claims in the bankruptcy cases for valid claims for unused vacation. It is uncertain at this time whether any payments will be made on account of such claims.
- Are severance benefits being paid?
Severance will not be paid at this time; funds for these amounts are not in the Wind Down budget that our lenders approved. The Company is proposing to allow administrative claims in the bankruptcy cases for valid claims for severance pay. It is uncertain at this time whether any payments will be made on account of such claims.
- Will I be eligible for unemployment benefits?
It depends on what state you are in and if you went on strike. For example, in some states, striking employees are not entitled to unemployment benefits. You are encouraged to contact the unemployment office for your state. The following website can help you locate your nearest state employment office: www.servicelocator.com.
- What will happen to my 401(k) account?
The Wind Down will not impact the money you already invested in your 401(k) account or your right to your benefits under the plan. The money invested in your 401(k) account is held in a trust on your behalf. Creditors of Hostess Brands have no legal right to take money from your 401(k) account. You will cease making contributions to the 401(k) plan after your termination of employment and any unvested amounts in your 401(k) account will be forfeited. You should contact the Recordkeeper, Principal, to discuss any questions regarding distributions from your 401(k) account and treatment of any outstanding loans.
- If my employment has now terminated, when can I rollover or cash out my 401(k) account at Principal?
Former employees of Hostess with an existing 401k account with Principal Financial Group can contact customer service at 1-800-547-7754 to request a distribution/rollover of their existing account. Terminated participants with a balance of $200 or less will have their accounts cashed out immediately and will receive a distribution check in the mail. Terminated participants with a balance above $200, but less than $1,000, will receive a benefit event letter and distribution paperwork from Principal that will provide them with all their available options. Terminated participants with a balance of $1,000 or more will receive a benefit letter from Principal that will explain all of their available options. These participants will need to contact Principal to request distribution paperwork.
- What will happen to my pension benefit in the IBC Defined Benefit Plan?
Because the Defined Benefit Plan sponsored by Hostess Brands does not have sufficient assets to cover all liabilities, the Plan will likely be terminated and the Pension Benefit Guaranty Corporation (PBGC) will assume its liabilities. PBGC will pay benefits according to a complex set of legal rules. Once the Plan is terminated, you will receive information directly from the PBGC regarding your benefits. As of February 2013, however, the Plan has not yet been terminated.
- My pension benefits are provided under a Multi Employer Pension (MEPP) plan. What will happen to those MEPP pension benefits?
Hostess Brands suspended payments to the MEPPs as of August, 2011. For active employees, the circumstances differ for each MEPP, so you should contact the administrator of the MEPP that you participate in.
- What will happen to my medical and dental benefits under the Hostess Brands sponsored plan?
For those employees whose employment has been terminated, coverage under the Hostess Brands medical plan ended on the last day of the month of termination. Costs for medical and dental services that you incurred prior to your separation from service should be submitted as soon as possible.
- Will continuation coverage (i.e., COBRA) be offered benefits under the Hostess Brands sponsored plan?
Continuation coverage will be available through CORRA for employees who were on the Hostess medical plan for so long as Hostess maintains a medical plan and if the other requirements for COBRA coverage are satisfied. A mailing with detailed COBRA information is forthcoming. Upon enrolling in COBRA, coverage will be retroactive from the date of loss of coverage.
- What will happen to my medical and dental benefits under union sponsored plans to which the Company makes contributions on my behalf?
Hostess Brands has terminated its contributions to all union-sponsored plans (also known as Taft-Hartley plans). Your benefits may have ended on the date you separated from service or the date the Company's participation in the plan was terminated, whichever occurred first. Contact your plan administrator for information on whether you still have coverage.
- Will continuation coverage (i.e., COBRA) be offered under such union-sponsored plans?
You should contact your plan administrator for information about continuation coverage related to these plans.
- What will happen to my Health Care Reimbursement Fund or Dependent Care Fund?
Qualified expenses are eligible for reimbursement if the claim was incurred on or before the date of your termination. Any additional amounts held in Flexible Spending Accounts are forfeited as required by IRS tax regulations. Participants may obtain additional information regarding their Flexible Spending Accounts from BMO Benefit Services at 800-236-3539 or www.bmo.com/bmoflex or their tax advisor.