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My employer gave me my 60 day notice yesterday
05-20-2016, 12:19 PM
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#1
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Recycles dryer sheets
Join Date: Apr 2012
Location: Seattle
Posts: 479
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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.
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05-20-2016, 12:35 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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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!!
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05-20-2016, 12:41 PM
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#3
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Recycles dryer sheets
Join Date: Feb 2015
Posts: 212
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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.
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05-20-2016, 12:44 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Quote:
Originally Posted by supernova72
I work in an aeropause industry...
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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
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05-20-2016, 12:44 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,962
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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
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05-20-2016, 01:06 PM
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#6
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Moderator
Join Date: Nov 2015
Posts: 13,879
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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.
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05-20-2016, 01:15 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,363
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Retiree medical for $70 a month until Medicare?
Don't worry. Be happy.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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05-20-2016, 01:32 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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Quote:
Originally Posted by marko
Retiree medical for $70 a month until Medicare?
Don't worry. Be happy.
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+1
I'd be doing backflips
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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05-20-2016, 01:40 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 1,111
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Quote:
Originally Posted by supernova72
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.
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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
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05-20-2016, 02:01 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,495
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Quote:
Originally Posted by Big_Hitter
+1
I'd be doing backflips
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+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.
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05-20-2016, 02:34 PM
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#11
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Recycles dryer sheets
Join Date: Apr 2012
Location: Seattle
Posts: 479
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Quote:
Originally Posted by REWahoo
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.
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Oh crap, spelling error!!
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05-20-2016, 02:35 PM
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#12
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Recycles dryer sheets
Join Date: Apr 2012
Location: Seattle
Posts: 479
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Quote:
Originally Posted by dadu007
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.
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No kids and I have a trip to Vietnam planned. Cheers!
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05-20-2016, 02:38 PM
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#13
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Recycles dryer sheets
Join Date: Apr 2012
Location: Seattle
Posts: 479
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Quote:
Originally Posted by Senator
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.
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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.
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05-20-2016, 02:43 PM
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#14
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Recycles dryer sheets
Join Date: Apr 2012
Location: Seattle
Posts: 479
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Quote:
Originally Posted by marko
Retiree medical for $70 a month until Medicare?
Don't worry. Be happy.
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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.
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05-20-2016, 02:54 PM
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#15
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Recycles dryer sheets
Join Date: Apr 2012
Location: Seattle
Posts: 479
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Quote:
Originally Posted by Aerides
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.
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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.
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05-20-2016, 03:09 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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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.
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05-20-2016, 04:15 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Ventura County
Posts: 1,432
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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!
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05-20-2016, 05:02 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
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Quote:
Originally Posted by Options
+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.
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+3
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
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05-20-2016, 05:37 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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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 -
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05-20-2016, 05:45 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Mar 2015
Location: philly
Posts: 1,219
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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
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