FIRE by Trial

[retire2020]

I just resigned. We had several re-orgs at my MegaCorp in past three months and my role from global was changed to local customer base. Worst of all was last Friday when I got paid for end of July and found out by surprise that my base salary was cut by 8% and that too was retroactive from July 1st! No one communicated pay cut through out last three months and through five diff managers in just three months. I knew and found out once again that loyalty is one way street in Corporate America. I felt insulted the way I was treated after 7+ years at this MegaCorp so I just handed in my resignation with two weeks notice.
Not the way I wanted to end my career but it's what it is! Thank god that my skills are very marketable but I will not be actively looking and consider my self FIREd.

My plan is simple.
- 3M AA split 65/35....will change to 60/40 soon
- Withdraw 3% every year ---> 90K
- DW's part time consulting..30 Hrs/Month will bring in 30K/yr
- 80K is essential expense and rest is discretionary

Our daughter has four more years of college left. Twin boys will attend college in six years. Education is fully funded and not in that 3M. DW will continue her part time job for six years. Will then re-evaluate WR in six years when DW stops working.

My taxable investment generates 60K yield so in worst case I'll withdraw 30K from short term muni bond for coming six years assuming all downhill from here.

Will need to figure out health insurance. Planning to use COBRA for rest of the year.

Yes...I'm scared! But will deal with it as it unfolds!

 

[splitwdw]

Looks like your twin just retired and posted here too!

 

[cathy63]

...Worst of all was last Friday when I got paid for end of July to find my base salary was cut by 8% and that too was retroactive from July 1st!...

It is illegal to change an employee's salary retroactively. You should point this out to your payroll department, and if the response is not to immediately fix the problem, file a wage claim with your state's department of labor.

I assume that one of your managers was supposed to notify you of this at the time they told you about the change in responsibility, but it probably fell through the cracks. Unless they can prove that you were told, you should have a good case to get your previous pay rate for July.

 

[retire2020]

I asked the same question to my new manager of one week that is it even legal to cut employee's pay without even communicating to him. She offered me her apology that she should have done that but missed as she also had entire new team reporting to her. She is a very nice person and my action about my pay cut would only put her in trouble. I would like to remember first seven years with MegaCorp and forget the last three.

 

[VFK57]

I think you are going to be OK, the only challenge is med insurance after the COBRA, may be ACA will provide it. Most major corporations (if not all)are cutting their expenses without any regard to loyalty and past great results, especially in difficult economic times.

 

[Sunset]

I asked the same question to my new manager of one week that is it even legal to cut employee's pay without even communicating to him. She offered me her apology that she should have done that but missed as she also had entire new team reporting to her. She is a very nice person and my action about my pay cut would only put her in trouble. I would like to remember first seven years with MegaCorp and forget the last three.

She is snowing you.
It does not come out of her pocket.
I missed what you said you got as severance pay ?

Her feeling good/bad does not pay your phone bill and assuming a random number like you make $6,000 per month , then 8% is $480 - that is a lot of phone bills.

And now I see she was your manager for 1 week. It's not her fault, it's fault of higher up, and they should pay.

 

[38Chevy454]

X2 to go to HR and make them pay you. What do you care, they screwed you and now you are leaving. So make them pay up. Megacorp will not miss the money, but you certainly do.

Oh yeah, congrats on being in good financial position that you can FIRE, and not be forced to accept the megacorp BS.

 

[MBAustin]

...congrats on being in good financial position that you can FIRE, and not be forced to accept the megacorp BS.

+1

Good for you to go out on your own terms. Plan something fun for the first few w*rkdays that you don't have to.

 

[rodi]

I'd say you're good financially.

But I agree with pursuing undoing the retroactive, un-notified, paycut. It's not your most recent manager's fault/issue - since she was only in the chain for 1 week.... You should have been notified July 1st or sooner.

If you got severance - make sure it uses the previous pay rate (before paycut) as a basis. Same with any unpaid vacation hours.

The company sound excessively slimey.

 

[Onward]

I LOVE the title of this thread.

 

[Markola]

Wow, what management chaos. Congratulations on having created your own parachute and deploying it with your sanity intact. Your megacorp wouldn't happen to start with "Ya" and end with "hoo" would it? . Sounds awful!


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[retire2020]

Thank you all for your comments! 8% comes out to be about 14K/yr. No severance offered as I am resigning. I'll still ask for severance but do not have any hope. Its me vs MegaCorp so no surprise who will win! My MegaCorp is not Yahoo but an elephant size IT company with about 400K employees world wide..
Last 32 years of LBYM and disciplined savings made me FI and it feels great to just walk out. Only time will tell if that was a right decision but right now I've no double thoughts about my decision.

 

[Golden sunsets]

Is it possible that you are victim of age descrimination? I don't see your age stated.


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[EastWest Gal]

I just resigned. We had several re-orgs at my MegaCorp in past three months and my role from global was changed to local customer base. Worst of all was last Friday when I got paid for end of July and found out by surprise that my base salary was cut by 8% and that too was retroactive from July 1st! No one communicated pay cut through out last three months and through five diff managers in just three months. I knew and found out once again that loyalty is one way street in Corporate America. I felt insulted the way I was treated after 7+ years at this MegaCorp so I just handed in my resignation with two weeks notice.
Not the way I wanted to end my career but it's what it is! Thank god that my skills are very marketable but I will not be actively looking and consider my self FIREd.

My plan is simple.
- 3M AA split 65/35....will change to 60/40 soon
- Withdraw 3% every year ---> 90K
- DW's part time consulting..30 Hrs/Month will bring in 30K/yr
- 80K is essential expense and rest is discretionary

Our daughter has four more years of college left. Twin boys will attend college in six years. Education is fully funded and not in that 3M. DW will continue her part time job for six years. Will then re-evaluate WR in six years when DW stops working.

My taxable investment generates 60K yield so in worst case I'll withdraw 30K from short term muni bond for coming six years assuming all downhill from here.

Will need to figure out health insurance. Planning to use COBRA for rest of the year.

Yes...I'm scared! But will deal with it as it unfolds!

Ditto re: retroactive cut in salary. Don't you have a contract or employment agreement? I wouldn't care if the new manager is nice or not. It was her job to make it right. I agree with going to HR about this. And going to the state department of labor.

Many of us here buy our own insurance on our own or through ACA. It's all pretty darn expensive and the costs seem to be going up astronomically. But it is easy to get. Start looking into it now. You can browse the plans and compare to your COBRA costs. BTW, you don't have to pay for COBRA immediately, you have 60 days, or until you first use it. It's too bad you didn't wait until Monday. You would likely have coverage until the end of the month.

My last day was Sunday, and my assets and spending are the same as yours. I have been ready for this for years. Once the shock wears off, you'll begin to enjoy your freedom.

Hanging around here helps a lot too.


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[retire2020]

Ditto re: retroactive cut in salary. Don't you have a contract or employment agreement? I wouldn't care if the new manager is nice or not. It was her job to make it right. I agree with going to HR about this. And going to the state department of labor.

Many of us here buy our own insurance on our own or through ACA. It's all pretty darn expensive and the costs seem to be going up astronomically. But it is easy to get. Start looking into it now. You can browse the plans and compare to your COBRA costs. BTW, you don't have to pay for COBRA immediately, you have 60 days, or until you first use it. It's too bad you didn't wait until Monday. You would likely have coverage until the end of the month.

My last day was Sunday, and my assets and spending are the same as yours. I have been ready for this for years. Once the shock wears off, you'll begin to enjoy your freedom.

Hanging around here helps a lot too.


Sent from my iPhone using Early Retirement Forum

I'm an employee and not aware of any agreement. will need to look into. Thanks for the info on 60 days COBRA period. I did wait until Monday and resigned with two weeks notice so 8/15 is my last day at MegaCorp.

 

[retire2020]

Is it possible that you are victim of age descrimination? I don't see your age stated.


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I do not think so. I'm 51. Multiple re-org and I am one of their victims regardless of age. There are many in the same boat and hanging around because they can not afford to quit. Whether were the communicated about the cut I do not know.

 

[Philliefan33]

I also agree that you need to pursue the "retroactive pay cut" situation. Do not let Megacorp get away with that.

Because of your good planning, you are in the position of not needing the higher pay for July. But would you rather the money line some executive's pocket? If you won't do it for yourself, think of the co-workers you are leaving behind. They probably need the retroactive pay more than you do, but are not in a position to jeopardize their job by making waves.

 

[Johnora]

Thank you all for your comments! 8% comes out to be about 14K/yr. No severance offered as I am resigning. I'll still ask for severance but do not have any hope. Its me vs MegaCorp so no surprise who will win! My MegaCorp is not Yahoo but an elephant size IT company with about 400K employees world wide..
Last 32 years of LBYM and disciplined savings made me FI and it feels great to just walk out. Only time will tell if that was a right decision but right now I've no double thoughts about my decision.

Well done, well played, well prepared!!

 

[Aerides]

Any manager at any Mega that was doing something as big as widespread wage cuts was told repeatedly by HR and her leaders that all staff had to be informed by X date. She was also asked to confirm all staff were communicated to by X date, probably both to HR and her boss.

So you didn't slip through the cracks. She just blew it and probably not just you but many people. She might be nice, but she's possibly incompetent and probably lied more than once saying she had done all the talks.

I get the feeling it wasn't even widespread, and just a surgical few - or you would have heard it from your peers. If I wasn't told officially, my grapevine would have lit up. You aren't being told the whole truth and should pursue via HR. 8% of a 6 weeks isn't nothing. It's going to cover at least a month or two of cobra...

 

[retire2020]

You all convinced me. I will approach HR/Payroll about un informed retroactive pay cut.


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[EastWest Gal]

I think you should check with your state labor laws. It is not a federal requirement maintain a certain pay level except for minimum wage.

A retroactive pay cut is probably illegal in most states. You must be informed before you work any hours at the lower pay. I found a website called myemploymentlawyer.com and it appears your question has been asked by people in many states. You don't need a lawyer to contact your state department of labor. Also, given that you resigned due to a pay cut, if the cut were big enough, you might even be able to collect unemployment even though you resigned. You might want to explore this further since you now are not working. I've been through enough work BS over the years (bullying and harrassment mainly) that I've done a lot of reading about workplace issues.

 

[Youngblood]

Retire2020, I'm sorry to hear this, but good on you being disciplined and LBYM. Stories like this concern me and this is what helps keep me motivated to follow the LBYM, plan, & save lifestyle. If I am ever put in this situation, I hope to be like you (FI) and be able to say 'ENOUGH!' and walk away. I know this isn't how you planned it, but again, congratulations on being prepared!

 

[Rickt]

Retire2020, good job on being financially disciplined and prepared. All the best dealing with HR to get reimbursed for the retroactive paycut.
You will be fine financially.

Best Wishes!

 

[retire2020]

I think you should check with your state labor laws. It is not a federal requirement maintain a certain pay level except for minimum wage.

A retroactive pay cut is probably illegal in most states. You must be informed before you work any hours at the lower pay. I found a website called myemploymentlawyer.com and it appears your question has been asked by people in many states. You don't need a lawyer to contact your state department of labor. Also, given that you resigned due to a pay cut, if the cut were big enough, you might even be able to collect unemployment even though you resigned. You might want to explore this further since you now are not working. I've been through enough work BS over the years (bullying and harrassment mainly) that I've done a lot of reading about workplace issues.

Thanks a lot for all these tips. Two managers have been trying to convince me to stay and want to see me next Tuesday in NYC - No offer from them to fix anything...just saying please stay and help us through this new transition period-- their approach just makes me sick. No one mentions anything about severance package or pay cut or 401K match which I'll loose but they want me to stay and help them!

 

[RobbieB]

Well, you just may be able to talk yourself into a a sweet deal then.

Why not show up and let them throw obscene amounts of dough at you.

How about an 8% increase retroactive as you gave me an 8% cut?

How about double 401K match, and paid health care for 2 years after I leave at the end of the year?

Eat 'em and smile -