Somebody asked in another thread what is going to happen to severance if these layoffs are as big as some people are predicting, and I think that's a really good question.
I doubt AT&T would forgo severance altogether, but I could see it being cut significantly compared to previous packages.
Any thoughts on this?
The annuity doesn't go down. The lump sum amount that ATT has to keep in the bank to pay your monthly annuity goes down as interest rates go up, because they can assume a higher return on investment of the lump sum.
I took a voluntary “buyout” last summer. Our VP said the next round of offers might not be so generous. ATT pension’s monthly annuity goes down as the interest rates go up so 2018 rates are better than 2019.
Comparisons with Version's last severance package?
I was just laid off in Sept and I received 50% and unless they come out with an official announcement then it will be 50%. I remember hearing back in 2002, when there were about 10,000 layoffs that Ed Whitacre said 'never again will I pay to get rid of managers". It was a year of severance back then. The 10,000 laid off was once Project Pronto was completing. This was the project to place DSL throughout the company OSP. It is too bad that AT&T doesn't think like Verizon does. They would certainly get a lot of people to take it and most would be the older ones. Just my opinion though.
Up to 2015 the cap was 12 months, then cut to the current 6.
The management severance package is an official HR policy and was last revised in 2015. They could of course revise it again, but have not as of today. Go to HR One Stop and search for "severance" it will come right up. 13 or more years = 50% capped severance.
contractual agreements should be honored. that said, some contracts s---.
It has been speculated for quite some time that severance would be cut down from 6 months to 3 months.
For the wiretechs its pretty much nothing
For my group, it’s the same that it’s always been: 4% per year of service and capping at 50%. The severance package can be found in hronestop if you search for it.