Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
My employer gave me my 60 day notice yesterday
Old 05-20-2016, 01:19 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
My employer gave me my 60 day notice yesterday

Somewhat anticipated but still internalizing what my next steps are. I work in an aerospace industry in an IT organization. Megacorp (160,000 employees).

IT is being reduced and after 30 yrs I got my notice yesterday. Planned on working two years. I get a 6 month severance pkg.

It feels weird since I've never been "laid off" before.

About me.

55 yrs old
single
750K in 401K
pension (non cola) at $3100 a month (can draw after my layout benefit ends in 6 months). I can also take a lump sum on the six months pay.
expenses are 60K a year
After final check July 22nd will owe 125K on home (valued at 535K). No other debt.

Feels weird but to be honest was pretty burned out. We've had 3+ yrs of reductions. My background is IT Finance and IT Service Delivery mgmt. I achieved a "level 5" status which is high in my field. I might pursue contract work. Seattle WA is a pretty hot market right now (where I live).

Two undergrad degrees and one masters (TMBA)

I get retiree medical at a reasonable rate ($70 a month).

Cheers.
__________________

__________________
supernova72 is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-20-2016, 01:35 PM   #2
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,068
Congrats!

While it may be a bit stressful in the short run, plan on collecting unemployment after the severance ends. Do not neglect to take the UE benefits, unless you are prohibited from taking them by some employer agreement along with the 'package'.

Once you start a pension, you cannot likely get UE.

For the UE reason, you may want to get a lump sum severance, unless other benefits stop and go with the severance payments.
__________________

__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 05-20-2016, 01:41 PM   #3
Recycles dryer sheets
 
Join Date: Feb 2015
Posts: 89
No kids to worry about?
If it were me, I would take a very long vacation and only then start thinking about what to do. Sounds like you could land a job pretty easily when ready.
__________________
dadu007 is offline   Reply With Quote
Old 05-20-2016, 01:44 PM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,149
Quote:
Originally Posted by supernova72 View Post
I work in an aeropause industry...
Thanks for exposing me to a new word.

Looks like Don Pardo gave you some nice parting gifts. Six months severance followed by a pension plus dirt cheap employee medical is far better than most of us who pull the plug on our own get.

Congratulations, and enjoy your upcoming freedom. Take some time before deciding to pursue contract work - you may find you'd rather sell a kidney than go back to work.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 05-20-2016, 01:44 PM   #5
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 1,727
It does start out as a shock, but hopefully you will be able to see it as a gift. Good luck.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 05-20-2016, 02:06 PM   #6
Full time employment: Posting here.
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 697
I'm in a similar situation re notice, but was already ER-ready and waiting because I had a feeling the layoffs were coming.

I'll get a really great severance, so it's a total win financially, but I get your point that it's still kind of weird, ultimately, getting the layoff treatment. Just have to put that aside and figure out what you want to do, and don't rush!

The next few weeks as word spreads will also be tricky, so be prepared for people who will give you that sad-face look.
__________________
Aerides is offline   Reply With Quote
Old 05-20-2016, 02:15 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,709
Retiree medical for $70 a month until Medicare?

Don't worry. Be happy.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is online now   Reply With Quote
Old 05-20-2016, 02:32 PM   #8
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 4,099
Quote:
Originally Posted by marko View Post
Retiree medical for $70 a month until Medicare?

Don't worry. Be happy.
+1

I'd be doing backflips
__________________
Swing hard, look up
Big_Hitter is offline   Reply With Quote
Old 05-20-2016, 02:40 PM   #9
Full time employment: Posting here.
 
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 839
Quote:
Originally Posted by supernova72 View Post
Somewhat anticipated but still internalizing what my next steps are. I work in an aeropause industry in an IT organization. Megacorp (160,000 employees).

IT is being reduced and after 30 yrs I got my notice yesterday. Planned on working two years. I get a 6 month severance pkg.

It feels weird since I've never been "laid off" before.

About me.

55 yrs old
single
750K in 401K
pension (non cola) at $3100 a month (can draw after my layout benefit ends in 6 months). I can also take a lump sum on the six months pay.
expenses are 60K a year
After final check July 22nd will owe 125K on home (valued at 535K). No other debt.

Feels weird but to be honest was pretty burned out. We've had 3+ yrs of reductions. My background is IT Finance and IT Service Delivery mgmt. I achieved a "level 5" status which is high in my field. I might pursue contract work. Seattle WA is a pretty hot market right now (where I live).

Two undergrad degrees and one masters (TMBA)

I get retiree medical at a reasonable rate ($70 a month).

Cheers.

If you are going to do contract work , I'd jump in right right away. You can always bail if you change your mind , but the longer you are away the harder it is to get back into it.

Also do a sanity check on your financial details with firecalc if you have not done that.

Lastly many people look at what their (possible) lump sum payouts would be able to buy them on the immediate annuity market and then compare are that against what their mega Corp pension would give them. Sometimes the mega Corp pension is a good deal , sometimes not. Since you've been with them 30 years there is a reasonable chance your pension might be worth sticking with.


Sent from my iPad using Early Retirement Forum
__________________
mh is offline   Reply With Quote
Old 05-20-2016, 03:01 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,495
Quote:
Originally Posted by Big_Hitter View Post
+1

I'd be doing backflips
+2
That 6 month buyout gift just reduced your two year anticipated retirement date down to 18 months...and you didn't have to do a thing to get it. You may even be able to rethink your plans and move your retirement date forward to now, if you so choose.

Most people would give anything to be in your situation and get this kind of free gift so close to retirement. I hope you remembered to say thank you.
__________________
Options is offline   Reply With Quote
Old 05-20-2016, 03:34 PM   #11
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
Quote:
Originally Posted by REWahoo View Post
Thanks for exposing me to a new word.

Looks like Don Pardo gave you some nice parting gifts. Six months severance followed by a pension plus dirt cheap employee medical is far better than most of us who pull the plug on our own get.

Congratulations, and enjoy your upcoming freedom. Take some time before deciding to pursue contract work - you may find you'd rather sell a kidney than go back to work.
Oh crap, spelling error!!
__________________
supernova72 is online now   Reply With Quote
Old 05-20-2016, 03:35 PM   #12
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
Quote:
Originally Posted by dadu007 View Post
No kids to worry about?
If it were me, I would take a very long vacation and only then start thinking about what to do. Sounds like you could land a job pretty easily when ready.
No kids and I have a trip to Vietnam planned. Cheers!
__________________
supernova72 is online now   Reply With Quote
Old 05-20-2016, 03:38 PM   #13
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
Quote:
Originally Posted by Senator View Post
Congrats!

While it may be a bit stressful in the short run, plan on collecting unemployment after the severance ends. Do not neglect to take the UE benefits, unless you are prohibited from taking them by some employer agreement along with the 'package'.

Once you start a pension, you cannot likely get UE.

For the UE reason, you may want to get a lump sum severance, unless other benefits stop and go with the severance payments.
Thanks for the great feedback. I'm told if I take the layoff income stream I can't "retire" until that 26 weeks pay ends. But if I take the lump sum I can retire on August 1st and draw my pension (it's frozen now).

I need to make sure I don't mess up my UE like you mentioned above by picking the wrong options.
__________________
supernova72 is online now   Reply With Quote
Old 05-20-2016, 03:43 PM   #14
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
Quote:
Originally Posted by marko View Post
Retiree medical for $70 a month until Medicare?

Don't worry. Be happy.
Yes, until medicare kicks in. It could go up or away of course but as a heritage employee I get retiree medical. They changed it recently where retirees get the same options as current employees so I'm built in a buffer for that sense it will most likely go up year after year.
__________________
supernova72 is online now   Reply With Quote
Old 05-20-2016, 03:54 PM   #15
Recycles dryer sheets
 
Join Date: Apr 2012
Location: Seattle
Posts: 458
Quote:
Originally Posted by Aerides View Post
I'm in a similar situation re notice, but was already ER-ready and waiting because I had a feeling the layoffs were coming.

I'll get a really great severance, so it's a total win financially, but I get your point that it's still kind of weird, ultimately, getting the layoff treatment. Just have to put that aside and figure out what you want to do, and don't rush!

The next few weeks as word spreads will also be tricky, so be prepared for people who will give you that sad-face look.
Yes so true about the word spreads and the reaction folks are giving. Totally understandable but I'm trying my best to take the high road and say "I'm retiring" vs. getting laid off mostly out of embarrassment. My management team is supportive of that approach. Yesterday I got a hug out of the deal from a close co-worker from a previous job. That was very nice and she's one I will keep in touch with.
__________________
supernova72 is online now   Reply With Quote
Old 05-20-2016, 04:09 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Florence, AL/Helen, GA
Posts: 2,093
My megacorp overreacted to the 2008 economy and they retired everyone 55 and older in 3 waves. Best thing to happen to me, as with a new grandson I didn't have time to run all over the country for work.

We were able to get unemployment while the company paid full salary for another year. Then they paid us a supplement until age 62 when we could draw social security. We were allowed to purchase their top level healthcare with a retiree health savings account (like a 401K), and it lasted until 3 months shy of my getting on Medicare.

Live conservatively and you'll be okay. Seattle's a hot real estate market and you're sitting good with little owed on the house. You can always cash the house in and "head south" where the houses are cheap and life is simple.
__________________
Bamaman is offline   Reply With Quote
Old 05-20-2016, 05:15 PM   #17
Full time employment: Posting here.
 
Join Date: Sep 2013
Posts: 511
Hi Supernova,

I know congratulations may not feel appropriate after getting RIFed, but the layoff benefits from the big "B" are fat enough that I think you'll be happy.

My situation is very similar to yours: Same company, same pension and retiree medical premium (+- 2%). Let me reiterate what others have said, carefully consider whether it's worth delaying your pension in order to receive unemployment insurance.

For us in CA, unemployment pay only lasts 6 months, my last day was December 31st and with the various layoff payouts I'll be in the 28% tax bracket for 2016. Under these circumstances taking the full unemployment payout and delaying the onset of my pension until the start of 2017 was a no brainer. Monthly benefit grows by 5.5% and my tax will go down to the 15% bracket in the new year.

That said, depending on your age, health and specifics of your income stream you may decide it's worth it to start your pension sooner and cut short your unemployment benefits. Probably worth modeling in your retirement calculator of choice to see what works best. IIRC employees of our Megacorp in your state had some special deal in which 2 full years of unemployment benefits were offered. While that's a long time to live off of savings + unemployment the 11% growth in your pension benefit during that time could be very worthwhile.

Enjoy it. You've earned it!
__________________
stepford is offline   Reply With Quote
Old 05-20-2016, 06:02 PM   #18
Thinks s/he gets paid by the post
Nodak's Avatar
 
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
Quote:
Originally Posted by Options View Post
+2
That 6 month buyout gift just reduced your two year anticipated retirement date down to 18 months...and you didn't have to do a thing to get it. You may even be able to rethink your plans and move your retirement date forward to now, if you so choose.

Most people would give anything to be in your situation and get this kind of free gift so close to retirement. I hope you remembered to say thank you.
+3
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
Nodak is offline   Reply With Quote
Old 05-20-2016, 06:37 PM   #19
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 2,503
Even better than that, he's still working 2 months so retired 22 months earlier than planned and only lost income for 16 of them.

That health care bene is sweet, mine costs me $530/mo.

Nice pension too, welcome to early retirement even earlier -
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 05-20-2016, 06:45 PM   #20
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: philly
Posts: 883
Congrats.
I actually had a similar situation. My division of megacorp split and was doing horribly so they offered folks a "please go away nicely package" I was retiring in 2 years also so I jumped on it.

You healthcare is sweet. mine is 750/month but I do have two children on it. 6 months salary and healthcare

best of luck to you
__________________

__________________
bclover is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Volutarily Gave Up My Seat Yesterday for $500 Voucher fidler4 Travel Information 27 08-08-2015 10:04 PM
Gave Notice Today bruce1 Other topics 10 06-08-2007 12:06 PM
Gave notice at Megacorp genghis Young Dreamers 41 05-25-2007 06:59 PM
i just gave them my notice.... thefed Other topics 68 10-18-2006 10:03 AM
I gave my notice! madeit! Hi, I am... 14 05-08-2006 08:01 PM

 

 
All times are GMT -6. The time now is 09:41 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.