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Offered a package, would you stay or go??
10-09-2015, 04:25 PM
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#1
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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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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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10-09-2015, 04:34 PM
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#2
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Moderator
Join Date: Nov 2014
Posts: 9,182
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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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10-09-2015, 04:55 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,587
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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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10-09-2015, 04:58 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,088
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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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10-09-2015, 05:13 PM
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#5
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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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 Quote:
Originally Posted by jim584672
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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thanks Jim,
I did not know this.
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10-09-2015, 05:19 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Bay Area
Posts: 2,745
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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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10-09-2015, 05:20 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,511
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Quote:
Originally Posted by bclover
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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10-09-2015, 05:23 PM
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#8
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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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Quote:
Originally Posted by bingybear
you've already decided.... quit bragging... quitter winner!
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lol!!
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10-09-2015, 05:33 PM
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#9
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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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Quote:
Originally Posted by robnplunder
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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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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10-09-2015, 05:39 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,511
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btw... which company... need to know what to short!
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10-09-2015, 05:43 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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Take it and run!
__________________
FIRE'D in July 2009 at 51...Never look back!
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10-09-2015, 06:03 PM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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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.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
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10-09-2015, 06:09 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2013
Posts: 11,078
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Yes, you will kick yourself if you don't. Time > money!
How much more will you save by working all that time? In the big picture, not enough!
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10-09-2015, 06:16 PM
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#14
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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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Quote:
Originally Posted by bingybear
btw... which company... need to know what to short!
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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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10-09-2015, 06:41 PM
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#15
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2010
Posts: 5,915
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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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10-09-2015, 07:23 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 1,608
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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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10-09-2015, 07:26 PM
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#17
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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Quote:
Originally Posted by jim584672
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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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.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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10-09-2015, 07:42 PM
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#18
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Recycles dryer sheets
Join Date: Aug 2014
Location: Western Canada
Posts: 393
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Would you turn down a lottery win? If not, what's the difference?
__________________
I'm not crazy. Honest, the judge had me tested.
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10-09-2015, 07:52 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Jul 2015
Posts: 1,103
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Run Forest, Run!!!
ER awaits!
__________________
Living the dream...
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10-09-2015, 07:54 PM
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#20
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 17,244
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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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