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Offered a package, would you stay or go??
Old 10-09-2015, 05:25 PM   #1
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Offered a package, would you stay or go??

My job just sent out an email offering a volunteer separation package. I work for a large company and it's been having financial difficulty for a time. I'm seriously thinking about taking it.

I was planning on retiring at 55 at the end of 2016 anyway.

Offer:
  • 6 months salary
  • 3 months paid cobra
  • employees must submit paperwork accepting offer by 10/31. can continue working to work until 3/31. last day must be on or before 3/31
  • company has to approve the request, if you are deemed essential you can be turned down.
Cannot re-apply to the company for minimum of 12 months.

Cons:
If I submit the paper and the application is accepted it, I cannot change my mind. (ok maybe not a con)

You will be notified by 11/15 whether your application is accepted. If it is the company will stop making the match on your 401K. they currently match us dollar for dollar up to 9%

If you don't accept the offer and they have layoffs and you are picked, you get 1 week severance pay, no company paid coverage.



So my plan is to submit application requesting 3/31 has my final day, get the 6 months severance which would take my to 9/31 with pay and starting my retirement 3 months early
yea or nay?
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Old 10-09-2015, 05:34 PM   #2
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You have to take it. You said the company is in financial trouble and if you don't apply, you could still get selected (laid off) and get virtually nothing. Plus, you're only talking about starting your retirement 3 months early and you're getting 6 months salary. That right there is 3 months more than you thought you would have had going into retirement.

Just hope you're not deemed essential.
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Old 10-09-2015, 05:55 PM   #3
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You need to check to see how your retirement benefits, if any, would be effected by taking a severance package. Of course, if no retirement benefits other than 401k, then may be no impact.
Missing out on the 401k match is really the only negative from my perspective, assuming you are not planning your retirement income too close.
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Old 10-09-2015, 05:58 PM   #4
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Don't forget:
If you leave in the year you turn 55 or later, 401k withdrawals can be made without the 10% early withdrawal penalty.
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Old 10-09-2015, 06:13 PM   #5
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Quote:
Originally Posted by jim584672 View Post
Don't forget:
If you leave in the year you turn 55 or later, 401k withdrawals can be made without the 10% early withdrawal penalty.
thanks Jim,
I did not know this.
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Old 10-09-2015, 06:19 PM   #6
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I'd say go for it if you have enough money to retire. I would do it in similar situation but my megacorp does not believe in offering voluntary retirement.
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Old 10-09-2015, 06:20 PM   #7
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Quote:
Originally Posted by bclover View Post
My job just sent out an email offering a volunteer separation package. I work for a large company and it's been having financial difficulty for a time. I'm seriously thinking about taking it.

I was planning on retiring at 55 at the end of 2016 anyway.

Offer:
  • 6 months salary
  • 3 months paid cobra
  • employees must submit paperwork accepting offer by 10/31. can continue working to work until 3/31. last day must be on or before 3/31
  • company has to approve the request, if you are deemed essential you can be turned down.
Cannot re-apply to the company for minimum of 12 months.

Cons:
If I submit the paper and the application is accepted it, I cannot change my mind. (ok maybe not a con)

You will be notified by 11/15 whether your application is accepted. If it is the company will stop making the match on your 401K. they currently match us dollar for dollar up to 9%

If you don't accept the offer and they have layoffs and you are picked, you get 1 week severance pay, no company paid coverage.



So my plan is to submit application requesting 3/31 has my final day, get the 6 months severance which would take my to 9/31 with pay and starting my retirement 3 months early
yea or nay?
you've already decided.... quit bragging... quitter winner!
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Old 10-09-2015, 06:23 PM   #8
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you've already decided.... quit bragging... quitter winner!
lol!!
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Old 10-09-2015, 06:33 PM   #9
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I'd say go for it if you have enough money to retire. I would do it in similar situation but my megacorp does not believe in offering voluntary retirement.
I have been there 22 years and this is the ONLY time I can remember them ever offering it.

You cannot believe the rumors this thing has generated. they had to readjust the third quarter sales and cash flow down by 50% and coupled with this, everyone is betting on a huge layoff by the end of the year.
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Old 10-09-2015, 06:39 PM   #10
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btw... which company... need to know what to short!
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Old 10-09-2015, 06:43 PM   #11
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Take it and run!
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Old 10-09-2015, 07:03 PM   #12
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It sounds like a pretty clear message from the early retirement Gods. If I was in your place I would probably take it.
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Old 10-09-2015, 07:09 PM   #13
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Old 10-09-2015, 07:16 PM   #14
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btw... which company... need to know what to short!
don't want to name names but let's say it's one of the largest chemicals company's located id De.
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Old 10-09-2015, 07:41 PM   #15
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As long as there is no financial downside with regard to benefits I would take it in a flash. Why not?
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Old 10-09-2015, 08:23 PM   #16
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It sounds like a good deal. I hope it all works out for you and you are enjoying retirement early next year.
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Old 10-09-2015, 08:26 PM   #17
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Quote:
Originally Posted by jim584672 View Post
Don't forget:
If you leave in the year you turn 55 or later, 401k withdrawals can be made without the 10% early withdrawal penalty.
This may be true... or may not be true. It's up to the plan. Please verify with your 401k plan documents whether you can withdraw between the age of 55 and 59.5 penalty free. The law states that plans CAN offer this provision to allow non-penalty withdrawals if you separate after age 55... but it is not required. So check your plan.

I would take the deal in a heartbeat.
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Old 10-09-2015, 08:42 PM   #18
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Old 10-09-2015, 08:52 PM   #19
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Old 10-09-2015, 08:54 PM   #20
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If the only difference in dates between when you wanted to leave and the severance is 3 months.... heck yea, take it...

They just told you 'take a 6 month paid vacation'.... what is not to like about that
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