If the terms of a buyout are very lucrative, people will dig in their heels and wait for it.
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@h3 Yes there used to be a pension. At the time, they were doing a 5% 401(k) match, and the 10% profit sharing. About 20 years ago, they rolled whatever pension balance you had into your 401(k), raised the match to 7%, and started the $3k annual retirement healthcare account contributions. But don't allow those that sing the praises of pensions to fool you - they are terrible in almost every way. Pension funds can be stolen and now you have no retirement. The company can dictate that your benefits don't start until you have 25 years and then fire you at 24 years. You can't leave the job prior to the pension collection times (which is usually decades, not years like 401(k) vesting) - i.e. if you find another job that you like more, forget about that pension. That's why they are popular with state and federal agencies, and are tied in with unions to make sure people don't get fired before they are eligible to collect the pension. Do a quick search on lost pensions due to fraud, company mismanagement, etc. Pension protection is much better than it used to be against that type of thing, but if you're the type of person that moves jobs or locations every 4-5 years to better your situation, avoid those companies with pensions as their only retirement vehicle.
@h3 Not since like 2005 ish
@gx I am new. Was there ever a pension?
@g1 You only have to give 30 days (the window is 30-90 days). 100% agree it's much, much worse than VBO and even severance. It's basically 6 months for a 30 year vet like myself. Severance would likely have been 60 weeks, while a VBO would be 90, plus great healthcare until Medicare. The worst part of the 'Retirement Package' is the healthcare up until 65. Just the premiums for Cobra are around $1800/month for a couple... and after the first 18 months you're dropped from Cobra and onto their HCAP....$2900 per month. You read that right - It's a mortgage payment. A whole new house and you're still paying out of pocket for thousands after that.
VBO is a thing of the past. They have a vastly reduced “retirement payout” which is a pittance compared to the last VBO and even the latest RIF payout. And you have to give three month’s notice. So I hope anyone who wants it is either ready to retire or is aggressively pursuing another company, and is given the three month lead time to get the job.
@f6 hear more about what. This isn’t a thing. It’s not even being discussed at upper levels. It’s made up gossip and wishful thinking.
When will we hear more about this?
The plan is that there is no plan. Shake the tree and see what falls down. We used to be good at planning. Those days are over.
So is 'buyout' the new VBO? Another rumor or is this reality?
I don't think anyone here knows what their plans are. Yes there will be attrition with RTO, but who knows if it meets their expected numbers or if it's the demographic of people they want to leave. All we know is they want to grow early career associates, and that we are top heavy. How many do they want to leave, how many will leave, and how many leaving will be senior people is anyone's best guess.
It is very possible they don't have a plan and will just keep doing what they're doing and over time they'll figure out who they want to back fill and at what levels. It's also possible the rumors of a buyout might be true if they do have a plan to shake up the workforce to and incentives older and perhaps detractors to leave. Forced attrition tactics may be one way, but some type of buyout would likely be quicker and more effective espeically with this job market. Layoff is possible too but they'd have to be more careful about discrimination if they want to be more targeted with who leaves.
The company has a lot of money and Fidelity is usually pretty generous with this type of thing IF they wanted to do it. I guess time will tell, but i'd bet there are many who would take something if it was offered
I left because I heard that there is no buyout in the next 5 years. I can’t wait that long so leaving in March or as soon as I get a better job (whichever comes sooner). Too young for retirement.
Opposite of buyout, just give you no bonus, people will quit
Buyout? Why would Fidelity offer a VBO when they have RTO based attrition, regrading of roles, and a possible re-org for physical co-location left to play out.
They'd be mad to show their hand and make people dig in.
Waiting for a buyout that may never come? Not a good plan, especially in this economy.