Severance packages for most affected employees at large U.S. companies have remained unchanged, according to a new Hewitt survey. However, as companies continue to look for additional ways to lower costs, those benefits — like many others — are at risk of being cut back, Hewitt says.

Hewitt surveyed 228 large U.S. companies representing 4.5 million employees, and found that more than 80 percent of employers made layoffs in the past 24 months; 45 percent intend to make further reductions in the next 12 months. Hewitt finds that severance programs have remained virtually unaffected by the economic downturn: more than half (51 percent) of companies offer a standard one-to-two weeks of pay for every year of service, and another third (33 percent) vary their payouts based on a formula that typically combines years of service, salary level, and/or grade.

In addition to cash payments, most companies reported providing at least one benefit after separation, which may include health care coverage, retirement benefits, disability, financial assistance or life insurance. Hewitt finds that health care coverage is the most prevalent benefit offered. Thirty percent of companies provide full health care coverage during the severance period and then offer COBRA at the end of the severance period. More than one quarter (26 percent) provide COBRA coverage immediately, with the employee paying the full premium. Most companies (72 percent) also provide outplacement assistance to severed employees.

Hewitt cautions that as companies look to make additional cost reductions in response to ongoing economic conditions, many say they will take a closer look at their severance packages. According to Hewitt's survey, one in five companies (20 percent) plan to make changes to their severance plans and nearly a third (31 percent) are unsure. Of those making changes, 43 percent plan to reduce cash payments, and one in five (21 percent) plan to reduce benefits.