Severance Pay

A payment made upon separation from employment under a plan, including a stock bonus or profits sharing plan formed by a trust that meets the requirements for qualification described in section 401 of the IRC (26 U.S.C.A. §401) or employee stock ownership plan, with one or more of the following attributes:

The amount of earnings on contributions or allocations of contributions or earnings and the amount of benefits are determined with regard to the current or accumulated profits or losses of the employer;

The employer can contribute only in those years when it has current or accumulated profits;

The employer's contributions can fluctuate depending on the level of its profits;

The employer's contributions are made out of current or accumulated profits;

Distributions are paid with respect to stock of a corporation that is held by an employee stock ownership plan.