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Philip Morris denies severance pay to widow
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Published: August 28, 2009
Tracy Patten spent nearly a decade working for Philip Morris U.S.A., but he suffered a heart attack and died 19 days before the Concord cigarette plant closed last month.
His widow, Tonia Patten, said when she tried to collect his estimated $63,000 in severance benefits, the company refused to pay because Tracy was not working when the plant shut down.
"It's immoral what they are doing," Patten said this week in her Mooresville home. "The amount of money is a drop in the bucket to this company, but my children deserve it."
Philip Morris spokesman David Sylvia confirmed that Tracy Patten was not eligible for severance because he was not an employee at the time the plant closed, part of company policy governing severance.
But he said spouses of employees who die are eligible for other benefits, including life insurance of two times the employee's base salary, the value of the deferred profit sharing plan, accrued pension benefits after the employee's 55th birthday for workers who had at least five years of service, and survivor income benefits.
Those income benefits start a month after the fourth anniversary of the employee's death, and provide 25 percent of his base salary until he would have been 65, the spouse dies or remarries, and also 5percent of base salary per child until they are 19, or 25 if they are in school. A Philip Morris consultant last year ranked the company as having the top survivor benefits, compared with its peers, Sylvia said.
"When we think of benefits overall, each block of benefits is designed for a certain situation," Sylvia said. "We hope we can work with Mrs. Patten to (help her) understand the benefits she is (receiving) and will receive, and the company's reasons and why she is not eligible for the severance plan.
"Obviously we believe that the benefits we provide overall are top-notch, including our survivor benefits."
Patten said Philip Morris is reviewing her request for severance. Sylvia declined to comment on any review.
Tracy Patten, 45, was a mechanical engineer who worked as a maintenance supervisor; his base salary was $79,200, Tonia Patten said.
Patten, 36, described her husband of 12 years as an athletic, Mr. Fix-It type who would always look to help others, from repairing a neighbor's electric scooter to going on a church mission trip to Mississippi after Hurricane Katrina hit.
In the spring, he organized a kayaking team to raise money for a Colorado charity that runs a kayaking camp for young adults with cancer. He later talked about using some of his severance to try to bring such a camp to North Carolina.
He did not have apparent health problems, but on July 8, he left work early because he was not feeling well. Tonia was in the bathroom at the time, and two of their three kids were in other rooms. He had a heart attack in the couple's bedroom.
Tracy Patten died two days later, his family by his side.
Tonia Patten recently quit her medical billing job to spend more time with her children, and put the house up for sale because she can no longer afford it.
In the house, family pictures adorn nearly every wall. A small, oval sign in the kitchen reads: "Happiness is being married to your best friend."
Until now, Patten said, she never had any complaints about Philip Morris and was grateful for the life insurance and other benefits she has received, but that she also deserves the severance package.
Patten wants to use it for college funds for their children, ages 15, 11 and 6. "It was not like he quit," she said. "They are dishonoring 91/2 years of service to the company."
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