Offered a package, would you stay or go??

bclover

bclover

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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 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.
 
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.
 
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.
 
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.
 
bclover said:
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?
Click to expand...
you've already decided.... quit bragging... quitter winner!
 
robnplunder said:
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.
Click to expand...

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.
 
It sounds like a pretty clear message from the early retirement Gods. :) If I was in your place I would probably take it.
 
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!
 
As long as there is no financial downside with regard to benefits I would take it in a flash. Why not?
 
It sounds like a good deal. I hope it all works out for you and you are enjoying retirement early next year.
 
jim584672 said:
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.
Click to expand...

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.
 
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:confused:
 
The only downside is the Cobra insurance issue. Are you able to purchase healthcare insurance through a DW's company, for example? Of course you may be eligible to purchase O'Bamacare if you were cut loose.

You've got to go for it.
 
Congrats on the offer. I would take it.

Since you would be laid off, would you not qualify for unemployment? This would narrow the $ lost for the last 3 months.

Sent from my SPH-L720 using Early Retirement Forum mobile app
 
That's the jackpot, severance right when you were planning to leave anyway. Take it. You won't miss the missing few months of pay.
 
Bamaman said:
The only downside is the Cobra insurance issue. Are you able to purchase healthcare insurance through a DW's company, for example? Of course you may be eligible to purchase O'Bamacare if you were cut loose.

You've got to go for it.
Click to expand...

I interpreted it as she would get the same COBRA as if she quit, it is just that the company will pay for her first 3 months of COBRA.

BC, I would go. Congratulations.

Just remember that if your retirement plan relies on 401k withdrawals that you need to be able to stay to Jan 1, 2016 (I presume the year you turn 55) in order to access your 401k penalty-free.

My mega did one of these voluntary separation offers about 25 years ago. The impact was that the employees with good job skills (other than some who were tied to the area) left, pocketed the bonus and quickly found other jobs and none of the deadwood signed up because they knew it would be hard to get a job elsewhere. So then we had more deadwood and less good employees left to do the same work. It was an unmitigated disaster.
 
bclover said:
don't want to name names but let's say it's one of the largest chemicals company's located id De.
Click to expand...
IT is well documented in the press... no great insider information. Actually the layoff numbers are pretty tame. Nothing like the Lucent in the early 2000's.

Take the gift and hope you are not too important to let go of.
 
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