Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Ok for some, not for others....
Old 01-16-2008, 10:15 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Ok for some, not for others....

After 22 years, DH got word from Mega Corp that his job will be going to another co. Since he will be taking the job, and he is so close to retirement, he will be eligible for pension and med bennies when he reaches retirement age from Mega Corp. Others were not so lucky...there are a lot of them.

The reason he gets to keep his pension and bennies is because he will be providing the same service to Mega Corp that he is now. Anyone else seeing this type of thing? The company is not an overseas business.

I'm racking my brain wondering if we should do anything before this takes place. Seems strange to say "well, I'm 53 and I've been at my job for 3 months.

You just never know when something is going to come up and bite you in the @ss.
__________________

__________________
There's no need to complicate, our time is short..
bbbamI is offline   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 01-17-2008, 07:31 AM   #2
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,905
Quote:
Originally Posted by bbbamI View Post
After 22 years, DH got word from Mega Corp that his job will be going to another co. Since he will be taking the job, and he is so close to retirement, he will be eligible for pension and med bennies when he reaches retirement age from Mega Corp. Others were not so lucky...there are a lot of them.

The reason he gets to keep his pension and bennies is because he will be providing the same service to Mega Corp that he is now. Anyone else seeing this type of thing? The company is not an overseas business.

I'm racking my brain wondering if we should do anything before this takes place. Seems strange to say "well, I'm 53 and I've been at my job for 3 months.

You just never know when something is going to come up and bite you in the @ss.
Sounds like he will be fine. I can see why this would be pretty unsettling, though! Glad he can keep his pension and bennies (hopefully including uninterrupted health insurance). How about vacation time earned, or other leave?
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 01-17-2008, 09:59 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Quote:
Originally Posted by bbbamI View Post
You just never know when something is going to come up and bite you in the @ss.
I think one should assume that this will happen to everyone at some point, and plan accordingly.

I fully expected it to happen to me, but was surprised it happened when it did. I was hoping for 2-3 more years...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 01-17-2008, 10:55 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Quote:
Originally Posted by Want2retire View Post
Sounds like he will be fine. I can see why this would be pretty unsettling, though! Glad he can keep his pension and bennies (hopefully including uninterrupted health insurance). How about vacation time earned, or other leave?
There will be no lapse in the health insurance. He'll get the vacation time paid or he can use it (whatever has been accrued this year). The other co has decent vacation days and since he plans on working just a year and a half longer, vacation days are not critical.

I know that we are fortunate, but it's one of those wha wha what? situations.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 01-17-2008, 11:02 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Quote:
Originally Posted by HFWR View Post
I think one should assume that this will happen to everyone at some point, and plan accordingly.

I fully expected it to happen to me, but was surprised it happened when it did. I was hoping for 2-3 more years...
Yeah, we were surprised too even though we knew sh*t happens. We could do ok without the pension, but the health ins is another matter. I guess we'll hope that Mega Corp keeps their promises, if not ER for him will have to come later.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 01-17-2008, 11:04 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
My DW was a fraction of a year away from being able to join the company medical plan during retirement (although we'd have to pay 100%) when her group was spun off the main company. That would have been a nice backup at least. While she did get some pension, it was frozen at the time of the spinoff, so she's missing those important final years that boost the payout significantly.

The last time I voluntarily changed jobs was in 1985. Since then the company was sold to another, the group I was in was sold to a third company, and that company was bought by a fourth. Then that company decided to get out of the business and let us all go (which luckily fit into my FIRE plans quite nicely since my years of service dated back to 1985!). Many of those employees that were let go are starting a new company. During all of this, our local company offices were closed and I've been telecommuting out of state for a few years.

Yeah, it's normal in tech at least.

Dan
__________________
Animorph is offline   Reply With Quote
Old 01-17-2008, 11:04 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
Before I left megacorp, where btw, when I joined, I thought I would stay until I died (you know, one of those cradle to grave things). Very paternalistic, ...blah blah blah... well fast forward 20 years and BAM, megacorp isn't doing so well. Layoffs Downsizing started, ...etc. No one was ever the same. For the last 10 years even the most confident (my favorite retort to threats was ' Hey, I was looking for a job when I found this one '...) of w*rkers was looking over his/her shoulder.

So, yes, you better get used to it. My colleagues got used to hoping for the best, but expecting the worst. The worst never came for many of us, but unfortunately the best never did either. Welcome to the new corporate America 'Global'.
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 01-17-2008, 12:36 PM   #8
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
I have worked for 11 years, and have had 4 employers. 4 401ks. 4 health plans. Only 1 interview and up until November, only 2 bosses.

Company was bought out, merged, or sold off 3 times. Had a pension when one of those employers was EDS- then when EDS sold us, I got a rollover IRA started. At last sell off, they let us roll the 401k into an IRA, so I have control over more of the money as well.

It is the way of the world, I doubt too many people will work for only one company name in their life. I am on #4 and am working with many of the same people I started with 11 years ago.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 01-17-2008, 12:46 PM   #9
Full time employment: Posting here.
 
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 839
Quote:
Originally Posted by bbbamI View Post
After 22 years, DH got word from Mega Corp that his job will be going to another co. Since he will be taking the job, and he is so close to retirement, he will be eligible for pension and med bennies when he reaches retirement age from Mega Corp. Others were not so lucky...there are a lot of them.

The reason he gets to keep his pension and bennies is because he will be providing the same service to Mega Corp that he is now. Anyone else seeing this type of thing? The company is not an overseas business.

I'm racking my brain wondering if we should do anything before this takes place. Seems strange to say "well, I'm 53 and I've been at my job for 3 months.

You just never know when something is going to come up and bite you in the @ss.
Make sure you get some (hopefully signed) paper document
stating the pension and bennies carryover. Something that provides you
some traceability.

things may show up for and look correctly accounted for now,
but if next year. Mega corp gets bought or merges with Uber mega corp
or some other adminstrative fiasco like that, you need to
make sure you have way to right things when they go FUBAR.

I bring this up because, I've seen something similar like this happen
to a friend.
__________________
mh is offline   Reply With Quote
Old 01-17-2008, 01:05 PM   #10
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 191
Quote:
Originally Posted by bbbamI View Post
...You just never know when something is going to come up and bite you in the @ss.
So true…

When I first started working at my current job (right out of college), I was amazed at the dedication, work ethic and pride in their work people around me radiated. Nothing was impossible to accomplish and no amount of work was too much, when needed to get the job done right. It was also true, everyone working there expected to have a well paying stable job for life (or at least as long as they wanted one).

And then it started… it looked as though they installed a revolving door to the CEO office, we were sold off a few times, we said good-bye to traditional pension and (for most of us) retiree health benefits. We entered 7 year long (still on-going) stretch of cycling between targeted and aggressive/sweeping layoffs. Our count now is about 1/5 of the original total. Most folks were totally taken by surprise (dear in the head lights image comes to mind). I have seen cases where husband & wife were let go on the same day (this is one mistake we’ll never make), single pregnant women and/or people few days shy from pension eligibility were being let go. Some would cry, some were handling it OK. Some had to move, some lost their homes (or were forced to downsize). As time went on, notice period as well as the severance package, were rapidly shrinking.

In retrospect, I am very thankful this has happened early on in my career. I, at least, could adjust my expectations easily. I now expect far less from my employer and I fully expect to be let go at some point in my work life.

However, good things happened as well as a result of this as well… We have re-evaluated our priorities and lifestyle choices. We’re working at reducing dependency on our jobs and eventual FI. We were able to establish a healthy life vs. work balance early on (knowing that my employer really could care less about my well being, has made it easy to say “no” to things making our jobs completely miserable).

As a side note, I found it very hard to work in an environment where one is surrounded by doom & gloom and bitterness with constant countdowns to retirement eligibility echoing all around. Luckily, I no longer have a problem – for the last few years I have been telecommuting 100% of the time… from my perspective, I still have a job, I like people I work with, I can telecommute, pay is not bad, our 401(k) kicks @ss – so, life is really not that bad!
__________________
lucija is offline   Reply With Quote
Old 01-17-2008, 01:09 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Nov 2006
Posts: 2,268
This makes me happy to be an underpaid government employee (police officer). Job security.
__________________

__________________
utrecht 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


 

 
All times are GMT -6. The time now is 03:33 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.