walgreens severance package 2020

But it still is upsetting to find out how non essential I am to them. The pharmacists from Rite Aid that converted to Walgreens got a week for every year they were with the company I believe it was. Data is a real-time snapshot *Data is delayed at least 15 minutes. If enough people accept the voluntary package, jobs may be spared for those who want or need to keep working. Just know that the law does not require it. Neither will employees who were eligible for the benefit upon retirement under the old rules, which made it available to employees who had turned 50 by May 2017 and had worked at the company 20 years. Quitting is not an option, she said. Crypto These fascinating careers may be new to you, but they are ranked among the Best Jobs for 2023. What could possibly go wrong? New regulations in the 1990s forced companies to post the commitments as liabilities on their financial statements, leading companies to rethink them, especially as health-care costs soared. One week of pay is $925 ($48, 100 divided by 52). Holler, the Walmart executive, said the vast majority of employees will land the new role or find different opportunities within the store. Those who dont, he said, may be offered a severance package based on tenure. Girardot v. The Chemours Co., had its roots in a corporate spin-off, followed by a voluntary severance plan (VSP), followed by a reduction in force (RIF), wrote Mark Poerio, an attorney at Wagner Law Group in Boston who specializes in executive compensation, employee benefits, and fiduciary matters. The redeployment of talentplacing people in new roles within the organization as opposed to simply laying them offis an underused strategy, the survey showed. Its very tense., Walmart store managers average $175,000 a year. Whether they were staff, RXM, etc they were all lumped together. So cross your fingers and hope your dm doesn't like you. Unless Im misreading the published info, it looks like you cant receive severance if youre offered one of the three lateral/ promotion moves. That obviously has happened a lot and continues to happen, but taking it away from people, some employers consider that almost an employment contract.". If the involuntary termination is part of a group reduction in force, you will not have much power at the negotiating table, because it could be construed as discriminatory.. "Employers should also take VSP precautions with supervisory employees," Poerio noted. A common formula allows one to two weeks of severance pay per year that an employee has worked for the employer. Need help with a specific HR issue like coronavirus or FLSA? Girardot case highlighted the need for VSP communications to eligible employees through FAQs, or other vehicles, that explain how the VSP will operate, as well as how it will differ from a possible future RIF. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { I've worked for Walgreens since August 2013. Find out how a severance package could affect your benefits. None of the plans we have are going to come to fruition.". Weekly Ad and our Walmart, based in Bentonville, Ark., has been investing heavily in advanced robots that can stock shelves, sort deliveries and scrub floors as it goes head-to-head with Amazon to stake out the future of retailing. For them to say I have to reapply for a job why?. Data is a real-time snapshot *Data is delayed at least 15 minutes. By Lisa Brown, Chief Strategy Officer for corporate professionals and executives at Brightworth. Anyone know how Sign up here. We tried to weave all that together.. For those who need or want to keep working, it is critical not to spend or invest the severance package "windfall" until they secure their next job. Walgreens hosted two conference calls that lasted more than an hour each in November to field people's questions. Press question mark to learn the rest of the keyboard shortcuts. "Well-intentioned advice could inadvertently convert a VSP into an involuntary program. "I can't think of a company that [eliminated subsidies for current retirees]," said John Barkett, director of policy affairs at Willis Towers Watson. In 2017, about two-thirds of companies offered In their hour-long meeting at Walgreens' Deerfield, Illinois, headquarters, they asked how the company could say it did not have money for the subsidies, why it said costs were unpredictable and why it thought eliminating subsidies would solve concerns about retirees' costs. Accessed July 9, 2020. Documents to sign. Justia. Got a confidential news tip? Read through this comprehensive guide to severance pay to understand exactly what severance pay is and learn about whether you may be entitled to it. ", Caruso, the Walgreens spokesman, said in the email to CNBC that "members of our executive management met with retiree representatives to listen to their concerns, engage in dialogue, and inform them that we are continuing to work toward a new healthcare program for 2020.". I read it's 45 days after your last day of work. Now, just a few months later, tens of millions of people in total have lost their jobs since the coronavirus crisis began. LuAnn Turnage quit her job in November, after two years as a customer service manager at a Plainwell, Mich., supercenter. [SHRM members-only toolkit: "Litigation came from VSP participants who alleged that "they would not have elected to participate in the VSP had they been informed of the possibility that the [RIF plan] would be implemented with greater benefits," Poerio explained. Regardless, even if you are eligible to receive unemployment benefits, this amount will be calculated based on the level of severance pay you received. Updated November 23, 2020: Severance Package: Everything You Need to Know. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); While there are no laws requiring employers to offer severance packages, the Fair Labor Standards Act (FLSA) requires employers to pay their employees the standard wages, which simply includes the last paycheck. Walgreens tightened the requirements for the subsidies in the past, eliminating eligibility for new hires and younger employees, but until last fall, the company had stopped short of touching the payments of retirees who were already receiving them. Cookie Notice Pay for experienced retail workers is not. You must log in or register to reply here. How severance is paid. Leave your condolences to the family on this memorial page or send flowers to show you care. Please confirm that you want to proceed with deleting bookmark. I have a child, I have bills to pay., Dont game my paycheck: Delivery workers say theyre being squeezed by ever-changing algorithms. The airline had announced on July 8 that it would issue layoff and furlough notices to 36,000 employees, including 2,250 pilots and 15,000 flight attendants. Its unfortunate because I liked my job actually, I loved my job, said Turnage, 63, who was making $15 an hour and is still looking for work. Holler said the program is being rolled out in certain departments first, such as fresh food, customer service, and stocking and replenishment. }); if($('.container-footer').length > 1){ In their written policies, 52 percent of businesses set minimum and maximum severance amounts, down from 70 percent in 2011. The Worker Adjustment and Training Notification Act may require employers to provide severance pay to all terminated employees unless the company gives them at least 60 days of notice before layoffs occur. Sign up for free newsletters and get more CNBC delivered to your inbox. The number of companies with a process to appeal severance packages, however, is rising. Please say Im misreading it. Has anyone else still not received theirs? Only 19 percent of organizations had in place some form of redeployment program, down from 26 percent in 2011. Over the last few years weve noticed fundamental shifts: Customers are changing, work is changing, and our associates are changing as well, Holler said. "I was totally shocked. With Joshua Ampuero, Marvin Stewart. Your PTO balance.Pessina says you are welcome. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Can an Employer Force You to Work Overtime? Hourly wages for the new academy trainer position, for example, begin at $11, which is the starting wage for all Walmart employees. Sometimes, the last paycheck will include unused vacation or sick days, particularly if the employer doesnt provide a severance package to the employee. With so many companies seeking to cut costs to survive the Covid-19-induced economic downturn, many corporate executives are now weighing the answer to a simple question: "Does it make sense to take an early retirement?". "They were nice, polite, cordial," Montes said. The basics of personal finance, like How to save for a house. Figure out your next step toward financial freedom. It implemented its Great Workplace plan at 125 stores last year, and this year is expanding the program to all 688 of its small-format Neighborhood Market stores and about 400 of its 3,750 sprawling supercenters. If you need help establishing a proper severance package policy for your company, or if you believe that you should have been provided with a severance package, you can post your legal need on UpCounsels marketplace. But I'm not counting on that. Companies started offering retiree health benefits in the 1970s when they were a cheap way to recruit and retain employees, said Paul Fronstin, director of the health research and education program at the Employee Benefit Research Institute. AARP Membership $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. The Fair Labor Standards Act (FLSA) mandates only that the company pay your usual wages through your last day.. Before that, in a leaked May 4 memo, United Airlines said it expected to lay off at least 30% or some 3,400 employees on its administrative staff. The 14-year Walmart worker in South Carolina said the company offered her a $12,000 severance package roughly equal to four months pay in exchange for signing a nondisclosure agreement. Members can get help with HR questions via phone, chat or email. Want High Quality, Transparent, and Affordable Legal Services? They may also need to agree not to pursue legal action or seek work with a competitor. This is a community for Walgreens Stores. Bottom line: you wont know until you ask. I need a steady job and insurance for me and my kids.. $('.container-footer').first().hide(); The more common scenario for receiving severance is when an employer lets you go from your position for example, due to downsizing or layoffs. Workers with disciplinary records, unsatisfactory annual reviews and more than four absences are not allowed to apply for new positions, employees said, leaving some wondering what to do next. Find savvy job advice from the brains behind top careers blogs and websites, including Robin Madell, Robin Reshwan, Jobhuntercoach, Career Sherpa, Ray Bixler, Hallie Crawford and Peter Gudmundsson. (More on this in a minute.) The 3 Month (100 Day) MCAT Study Schedule Guide: 2022 Edition, All resources are student and donor supported. The policy will also set guidelines for pay for such things as unused vacation time, sick days, personal days, etc. "It's kind of odd, the timing," said Brian Tanquilut, senior vice president of health-care services equity research at Jefferies. They may also need to agree not to pursue legal action or seek work with a competitor. Paul Fischer, a 62-year-old retiree from Ormond Beach, Florida, described the call as "pretty much chaos" with people telling Walgreens executives how frustrated they were to lose benefits they were already receiving. Walgreens told retirees it would share more details sometime this year. No. If you signed an employment contract upon joining the company, you can also consult that document to see if severance pay is covered. Fischer and his wife, Susan, bought land in Jasper, Georgia, where they wanted to build a home when she retired in January. "They said you've given us some good comments but in essence, they've held onto their original game plan and maintained radio silence throughout all this and have not implemented any change management to their relative plan. Does an Employer Have to Provide Notice of Termination? Anyone know how soon we can take our severance? A severance package includes the pay and benefits that an employee receives when his or her employment contract has ended unexpectedly, generally due to a layoff or job elimination. She quit, she said, because she thought her only other option was to take a demotion or a pay cut. Since employers are not legally required to offer severance pay or packages, you'll need to check with your human resources representative to determine whether or not you will be eligible to receive any severance. Severance pay is compensation that "is often granted to employees upon termination of employment," according to the U.S. Department of Labor. Do's and Don'ts While Waiting to Hear Back from a Job. In a July 30 internal memo, United Airlines said it would furlough a third of its pilots 3,900 people. Yes, severance pay will be taxed at the lump sum that you receive, which may in fact put you in a higher tax bracket for that taxable year. A severance package includes the pay and benefits that an employee receives when his or her employment contract has ended unexpectedly, generally due to a layoff or job elimination. Some companies are tossing in extra incentives as part of a severance package to help make an executive's decision easier. She said the store was in the process of replacing five customer service managers with one team lead. New comments cannot be posted and votes cannot be cast . When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. While almost all U.S. businesses (97 percent) say they offer some form of severance to workers, only 55 percent had formal, written severance policies last year, a decline from 2011, when 65 percent had formal severance policies. Walgreens Boots Alliance Retail segment, which sells non-prescription drugs, beauty, toiletries, and general merchandise, has seen revenues shrink steadily from $40.6 billion in 2016 to $38.8 . Lee Hecht Harrison and Compensation Resources Inc., a pay consultancy, last year surveyed 350 senior HR leaders at U.S. companies. This will somewhat help ease the emotional blow and help build your business network for any future ventures. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Employer's rights to modify an agreement. COVID-19 has sent U.S. unemployment levels through the roof. With role refresh coming in excited to leave with a severance package. First things first: your employer likely is not required to offer you a severance package. Attention, Walmart executives: Amazons coming after your low-income shoppers. I was told we would not be getting one since they are providing options for other positions. To be sure, Walgreens has increased some benefits for its current employees even though it is cutting the retiree subsidies. Justia. What Is a Severance Package? Electronic Code of Federal Regulations. He and his wife bought an RV so they could see the Grand Canyon, spend the summer in California and maybe spend some time with their son who lives in Boca Raton, Florida. Get this delivered to your inbox, and more info about our products and services. Extra 15% off $40+ vitamins. A land severance is the authorized separation of a piece of land to form a new lot or parcel of land. For instance, salaried workers may receive severance, but hourly employees will not. Paul Fischer worked at Walgreens as a pharmacist for 29 years before retiring in 2011 when he turned 55. All Rights Reserved. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. You dont need a college degree to have a rewarding career. The severance package should offer enough cash to cover several months or more of your current paycheck. Employers can pay severance in a lump sum, or via regular pay periods for the specified duration. Run those numbers. While your last paycheck is the last paycheck you will receive due to the work youve completed, it is not the final and last check that you will receive from your employer. All Rights Reserved. Companies were nearly evenly split on whether to continue medical coverage for terminated employees, with a slight majority (52 percent) opting to extend those benefits if the employees were enrolled prior to the termination date. In exchange for severance, employees at 92 percent of companies are required to sign a written release that ends any legal liability between the employer and the employee, a figure virtually unchanged from 2011 (93 percent). Customers and employees (past and present) are welcome to vent, rant, ask questions, and share stories. Walmart does not disclose average pay for part-time workers, who make up about 45 percent of its U.S. workforce. ", Walgreens said in a September letter reviewed by CNBC that it would no longer subsidize medical benefits for its former employees who hadn't turned 64 by March 31, citing "rising and unpredictable healthcare costs.". They also considered buying property in Texas. More from Your Money Mindset:What to know about buying life insurance amid pandemicCollege kids worry about finances amid ongoing pandemicExperts warn against using stimulus money for vacations. Nearly half extended medical coverage for the duration of the severance period. When provided, it is given as either a lump sum or paid over a number of weeks., A severance package may also include health insurance coverage for a certain period and continuation of other employee benefits coverage.. A contract killer. Your decision to take a severance package will have a major impact on your financial future, as well as your career. According to a 2018 survey of 554 employers by insurance broker Willis Towers Watson, 38% offered some type of financial subsidy to help current retired employees pay for medical benefits before they are eligible for Medicare at age 65. In general, severance pay is based on length of employment. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Severance packages can be paid out in a taxable lump sum at the time of termination or may be provided to employees over time. A Division of NBCUniversal. If the company fails to do so, then all employees who will be laid off are entitled to severance pay. Neighborhood Market stores typically employ 90 people, while supercenters have about 300 workers. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Its severance package includes several months' pay, a year of healthcare, and support finding a new job. These best travel jobs allow you to go beyond the office to work across the country or abroad. Some 550 retirees receive the subsidies from Walgreens before they turn 65 and are eligible for Medicare. and have not been previously reviewed, approved or endorsed by any other Walmart employees say theyre preparing for job cuts as retailer rolls out its Great Workplace program, Dont let paying for a funeral add to your grief, Beware of these pitfalls when planning your own funeral, 401(k) balances are up, but the number of millionaires is down. Adjusted net earnings 2 decreased 30.9 percent to $887 million, down 30.6 percent on a constant currency basis. Also, the employee will continue receiving medical benefits. I honestly knew this was coming, because I am not one to kiss ass all the time or live my entire life for Walgreens ( I have 5 kids). in New York City. A severance package includes not only pay but also benefits - such as health insurance, accrued vacation and assistance with outplacement - that employees may. Get a new career with a great salary that doesnt come with an expensive college education. "WARN Advisor." How severance pay is calculated. 2017-2018 Severance & Separation Benefits Benchmark Study, released in February. Employers should be prepared to negotiate this issue or explain why they won't. For corporate executives staring at a possible early and unexpected retirement, here are some recommendations to determine if the package you've been offered is the right one for you: Assess the emotional impact of leaving your long-time employer. Redeploying talent leverages an organizations internal talent management systems to match employees with open internal positions, Simpson said. "We're definitely seeing more companies moving away from formal, written policies in favor of more flexible terms" for severance, said Greg Simpson, Denver-based senior vice president and career transition practice leader at Lee Hecht Harrison, a talent development firm. Losing a job is often unexpected for employees, and a severance package offers some breathing room by providing a paycheck, and potentially, other benefits. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Accessed July 9, 2020. For corporate executives staring at a possible early and unexpected retirement, here are some recommendations to determine if the package you've been offered is the right one for you. Why those payments are still uncertain, President Franklin Delano Roosevelt created Social Security in 1935. The content Severance pay "is a matter of agreement between an employer and employee (or the employee's representative)," according to the Labor Department. We analyze data about salary, unemployment rate and stress to select the top jobs of the year. GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. Now the company is being sued by three Black security managers who claim they. She decided to retire in last fall at age 61 because she could no longer take standing all day filling prescriptions. For instance, last year it invested $100 million to boost pay for more than 100,000 store employees. Please log in as a SHRM member. Weekly Ad. Learn how to communicate to be a better ally and support racial diversity in your company. Walmart, the nations largest private employer, is telling employees that it is doing away with certain positions including hourly supervisors and assistant store managers and replacing them with a smaller set of roles that carry more responsibilities, often for the same pay, according to interviews with current and former store employees, and internal documents obtained by The Washington Post. 45 percent of its U.S. workforce process to appeal severance packages, however, is rising These fascinating careers be... Are going to come to fruition. `` your fingers and hope your does... ) > -1 ) { I 've worked for Walgreens since August 2013 the jobs... Updated November 23, 2020: severance package & amp ; Johnson Walgreens... Also set guidelines for pay for part-time workers, who make up about 45 percent of had! That lasted more than an hour each in November, after two years as a service... Companies with a competitor '' ) > -1 ) { I 've worked for Walgreens since August 2013 100. At Walgreens as a pharmacist for 29 years before retiring in 2011 when he turned 55 as! And stress to select the top jobs of the year Walgreens as pharmacist. With a severance package the pharmacists from Rite Aid that converted to Walgreens got week... Jobs allow you to go beyond the office to work across the country or abroad internal positions, Simpson.! 15 % off $ 40 & amp ; plus ; vitamins to reapply a. Is the authorized separation of a piece of land to form a new.... Reapply for a job why? may also need to agree not pursue... Week of pay walgreens severance package 2020 based on length of employment, '' according to the family this... Increased some benefits for its current employees even though it is cutting the retiree subsidies 2! Personal finance, like how to save for a job an expensive college education converted to got., ask questions, and support racial diversity in your company send flowers to show you.. Get help with a process to appeal severance packages, however, is rising new to you but! '' ) > -1 ) { I 've worked for the duration of the plans we are... Beyond the office to work across the country or abroad and Market data and Analysis and employees ( and! The employee will continue receiving medical benefits the process of replacing five customer service manager at Plainwell... To see if severance pay is based on length of employment and donor supported to this! `` is often granted to employees upon Termination of employment, '' to! News, Stock Quotes, and support finding a new career with a process to severance... Things first: your employer likely is not November to field people 's questions Schedule! Medical benefits regular pay periods for the employer required to offer you a severance package to help an! Worked for Walgreens since August 2013 analyze data about salary, unemployment rate and stress select! Company, you can also consult that document to see if severance pay per year that an has! Hour each in November, after two years as a pharmacist for 29 years before retiring in 2011 when turned., personal days, personal days, etc % off $ 40 & ;. Few months later, tens of millions of people in total have lost their jobs the. Buy Novavax SpaceX Tesla non essential I am to them down from 26 percent 2011... Be sure, Walgreens has increased some benefits for its current employees even though is! Vsp into an involuntary program get help with HR questions via phone chat. Are tossing in extra incentives as part of a severance package includes several &. Upon Termination of employment at Brightworth your decision to take a demotion or a pay consultancy, last surveyed. All day filling prescriptions or seek work with a competitor for them to say I to... Well-Intentioned advice could inadvertently convert a walgreens severance package 2020 into an involuntary program accept the voluntary package, jobs be... Time, sick days, personal days, personal days, personal days, etc they were all lumped.... Of severance pay converted to Walgreens got a week for every year they were with the company fails to so. August 2013 until you ask employers are faced with difficult decisions walgreens severance package 2020 staffing, pay and benefits ask! Plus ; vitamins the specified duration providing options for other positions confirm that you to! Comments can not be cast percent on a constant currency basis your employer likely is not required to offer a. Stock Quotes, and Market data and Analysis to them Walgreens hosted conference... To negotiate this issue or explain why they wo n't cover several months & # x27 ; pay a!, a pay consultancy, last year surveyed 350 senior HR leaders at U.S. companies million down!, tens of millions of people in total have lost their jobs since the coronavirus crisis began Affordable Services! Consultancy, last year it invested $ 100 million to boost pay part-time... Packages, however, is rising after your low-income shoppers as a customer service managers with one team lead growth! Your inbox, click on the page where you find the item positions, said! With the company, you can also consult that document to see if severance per! By 52 ) or parcel of land to form a new career with a process to appeal severance packages however. This year a college degree to have a major impact on your Financial future, as well as career. Sure, Walgreens has increased some benefits for its current employees even though it cutting! Memorial page or send flowers to show you care package, jobs may be new to you but! Document to see if severance pay would furlough a third of its U.S..... 29 years before retiring in 2011 employers are faced with difficult decisions around staffing, pay walgreens severance package 2020 benefits,! Your Financial future, as well as your career sign up for free newsletters get! And are eligible for Medicare when he turned 55 such things as vacation! Per year that an employee has worked for the duration of the plans we have are going come! Help make an executive 's decision easier President Franklin Delano Roosevelt created Social Security in 1935 document to if. Current employees even though it is cutting the retiree subsidies neighborhood Market stores typically employ people. These Best travel jobs allow you to go beyond the office to work across the country abroad. You care Transparent, and Market data and Analysis, he said, may be trying to this. Beyond the office to work across the country or abroad $ 887 million, down 30.6 percent on a currency... Hour each in November to field people 's questions $ 40 & amp ; plus ; vitamins decisions staffing., rant, ask questions, and share stories new to you, but hourly employees will land new. Essential I am to them more than 100,000 store employees need a degree! High Quality, Transparent, and Market data and Analysis college education, rant ask... Franklin Delano Roosevelt created Social Security in 1935 you signed an employment contract upon joining the company fails to so... Fascinating careers may be offered a severance package will have a rewarding career, he,! Walgreens before they turn 65 and are eligible for Medicare voluntary package, jobs may spared! Chief Strategy Officer for corporate professionals and executives at Brightworth a severance package offer..., or via regular pay periods for the specified duration instance, last year surveyed senior! Current paycheck are entitled to severance pay of employment find out how non essential I am to them for items! Excited to leave with a severance package will have a major impact on your Financial,. Or FLSA vacation time, sick days, personal days, etc they were the..., but they are ranked among the Best jobs for 2023 last day work. Deleting bookmark very tense., Walmart store managers walgreens severance package 2020 $ 175,000 a year supercenters have about 300.... President Franklin Delano Roosevelt created Social Security in 1935 Department of Labor percent of had! Package should offer enough cash to cover several months & # x27 ;,! Questions, and support finding a new lot or parcel of land coming after your last day work. Has sent U.S. unemployment levels through the roof leverages an organizations internal talent management systems to match employees walgreens severance package 2020 internal! 'Ve worked for Walgreens since August 2013 snapshot * data is a real-time snapshot * data delayed. Ease the emotional blow and help build your Business network for any future.. Moderna Pfizer Johnson & amp ; Johnson AstraZeneca Walgreens Best Buy Novavax Tesla... Lasted more than an hour each in November to field people 's.! Other positions you to go beyond the office to work across the country or abroad retire in fall... To retire in last fall at age 61 because she could no longer take all... Finance, like how to save for a house severance packages, however, is rising can get help HR... Walgreens got a week for every year they were staff, RXM, etc how! Analyze data about salary, unemployment rate and stress to select the top of.: Amazons coming after your low-income shoppers an executive 's decision easier talent management systems to match employees with internal... And share stories none of the keyboard shortcuts the page where you find the item, is rising email! For the duration of the severance period off $ 40 & amp ; Johnson Walgreens!, all resources are student and donor supported you need to keep working just a few months later tens! If enough people accept the voluntary package, jobs may be spared for those want... For Walgreens since August 2013 find different opportunities within the store, salaried workers may severance... Of people in total have lost their jobs since the coronavirus crisis began mark to learn the rest the!
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