If one is eligible for retirement what do they get besides a boot in the a--? No severance like they have in the past. If they get the severance there is no incentive for them to leave early as Jeff suggested they should in his email because of the pension interest rate (it does not apply to everyone, depends on plan and if you want lump sum) just wait and pick up the severance payout.
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@jai Please clarify- "They are lowering the severance amounts this year" Management? Bargained for? Any detail at all? Didn't think so. Severance plans are on One Stop and remain unchanged.
They are lowering the severance amounts this year. It will definitely be lower than the reduction in pension lump sum with the higher interest rates.
@bfu I think he’s referring to the West involuntary severance table or possibly the Legacy T involuntary severance table. In the former Southwest area it’s around 80k if you have over 30 years.
@cuh- "20 years gets you 60 weeks pay. 30 years = 100 weeks , 40 = 140 weeks , lump sum or monthly". I'm management so I'm capped at 6 months but wow...if the above is accurate that is extremely generous. Not knocking you, take what you can get. It just seems a little over the top. I am looking at a current contract for this region that was laying around here and it is specifying "...employee shall be eligible for a $700 severance payment, or payment equivalent to one week's wages (whichever is greater), for each completed 6 months of continuous service during the first year of employment and an additional $700 severance payment, or payment equivalent to one week's wages (whichever is greater), for each subsequent completed year of continuous service up to a maximum of $18,000". That's a far cry from 140 weeks. ( I understand that part of your point was that the contracts are all different...)
Union is a different ball game due to contract. They can keep their seat as long as they have seniority. Managers will now get hit by their zip code. Such motivation -NOT
The fact you are surplussed (laid off, asked to leave) makes you eligible for the standard severance per the plan. The fact that you are retirement eligible from a rule of 75 perspective does not prevent you from receiving the severance.
severance depends on your contract. in the west, before they can layoff low seniority workers they have offer a severance which will go to the most senior workers, thus saving jobs for less senior employees. 20 years gets you 60 weeks pay. 30 years = 100 weeks , 40 = 140 weeks , lump sum or montly. sooner the better
It is not meant to motivate any one. It is meant to avoid litigation with employees who go off the payroll after end of March. All the company moves are for their benefit only.
Jeff's email was foolish if they were trying to quote unquote """motivate""" retirement eligible employees to leave. Anyone on the fence was given a great reason to stick around until notifications in hopes of getting on the list for free severence money.