VSP (voluntary severance package)

[jcretire77]

My company just announced VSP, not a great one, 18 weeks of pay, but being so close to the end it is very tempting. Apparently all requests are not automatically approved. Has anyone here ever been denied when applying?

My wife works for the same company and we think that we will both apply

 

[jazz4cash]

Not familiar with that acronym but I think I know generally from context what it means and it sounds it is a less awful variety of a job cut or at least you are prepared.


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[bingybear]

voluntary severance package or voluntary separation package

package could be replace with plan

 

[dunkelblau]

My application was denied a few years ago. I left anyway but after a few weeks found I didn't have enough to occupy the time, so I let management talk me back in with a deal that amounted to the buyout premium, payable at the end of the time window used to calculate it (the equivalent in your case would be double pay for 18 weeks). After I collected on that deal we did a major overhaul of my job, and I've been OMY ever since.

I knew several dozen applicants who were accepted but I didn't know anyone else who took a retention deal (I imagine it was quite a few but no one's talking). I was surprised at a couple of the people who were accepted, one openly told all of us that he was retiring anyway (so maybe not a surprise), the other I suspect couldn't agree on terms (he ended up coming back after the blackout expired).

I guess with two of you, you'll have more permutations to work through!

 

[Just_Steve]

The state agency I worked for offered a buyout and so many people from hourly, supervisors and managers applied that they withdrew the offer to everyone and never offered an early out ever again. It would have effectively shut down the agency.

 

[jcretire77]

Thanks for all of the replies. We have one week to make the decision. I wanted to retire by now anyway, but have stayed to help fill two openings in my group. One down, started two weeks ago. Not sure that my offer to take VSP would be approved, but if not then I would just be p*ssed and then have to decide how long I would stay. If approved I would stay as long as the end of the year if they needed me (which I don't think that they really do).

 

[38Chevy454]

It does kind of suck when they offer it, but then potentially tell you that you are not approved. It leaves a bad taste and the company is just creating bad attitudes with those they disapprove. Since you are already in OMY mode and ready to go, I say apply and hope they select you as one of the approved. I doubt they would want to keep you until year-end, the whole point of most VSPs is to reduce costs, and labor is the biggest of the costs they can cut.

 

[Bamaman]

What about healthcare? Are you going to be treated like retired, or are they just throwing you to the dogs and O'Bamacare?

You didn't mention age, but are you really retiring very early?

My MegaCorp retired everyone over the age of 55 in 2008--when they overreacted to the business conditions. And they paid dearly to get rid of us all.

 

[jcretire77]

Bamaman, I am 57 and my wife is 59. Not too early. No debt. Expenses in line with assets. UnAffordable Healthcare premiums are about $875-$1000 for two in ID. We are both relatively healthy. A years worth of cash at hand. Social Security will be decent for both and no need to file early. An okay mix of tax and tax deferred accounts.

At home this week just pretending to be retired.

 

[Big_Hitter]

At home this week just pretending to be retired.

how many rounds you going to get in with this gorgeous weather?

 

[jcretire77]

I was hoping for two more, tomorrow and Thursday and then the weekend. I have some kind of sinus/tooth issue going on. The pain comes and goes. Did play Saturday (90) and yesterday (89), but up until 2:00am last night unable to sleep from the pain that came back every 30 minutes regardless of what I did. Antibiotics are on the way home now. Probably going to cancel tomorrow and keep my fingers crossed for Thursday.

 

[Big_Hitter]

I was hoping for two more, tomorrow and Thursday and then the weekend. I have some kind of sinus/tooth issue going on. The pain comes and goes. Did play Saturday (90) and yesterday (89), but up until 2:00am last night unable to sleep from the pain that came back every 30 minutes regardless of what I did. Antibiotics are on the way home now. Probably going to cancel tomorrow and keep my fingers crossed for Thursday.

hope you get to feeling better - Sr. club championship coming up!

 

[Bamaman]

Bamaman, I am 57 and my wife is 59. Not too early. No debt. Expenses in line with assets. UnAffordable Healthcare premiums are about $875-$1000 for two in ID. We are both relatively healthy. A years worth of cash at hand. Social Security will be decent for both and no need to file early. An okay mix of tax and tax deferred accounts.
At home this week just pretending to be retired.

Why don't you just continue doing what it sounds you're going to be good at--being retired? Not all of those that retire do a good job at it. It takes a peace of mind, and that often requires letting your past life go. I got good retirement training from my father--and never intended to work to retirement age anyway.

 

[jebmke]

It does kind of suck when they offer it, but then potentially tell you that you are not approved. It leaves a bad taste and the company is just creating bad attitudes with those they disapprove. Since you are already in OMY mode and ready to go, I say apply and hope they select you as one of the approved. I doubt they would want to keep you until year-end, the whole point of most VSPs is to reduce costs, and labor is the biggest of the costs they can cut.

This is one of many reasons why these plans represent poor management. It is the lazy way out for management.

 

[jcretire77]

I have been on vacation this week. I had to sign the VSP before Monday at noon. I decided to log into work, 807 emails later I signed the VSP and sent it to my boss and his boss and to HR. So regardless whether they accept it or not, they certainly know that I am not a long term employee.

 

[Big_Hitter]

hey congrats! Let's try and play a round in the near future - course will be tied up next week with the member/guest

 

[jcretire77]

Absolutely.

Management still needs to sign off. If they don't then I will need to decide enthused I am going to be and how long I will stay. I had pretty much settled with next spring, maybe March. Not sure that I want to do that any longer. Have a great weekend.

 

[jeffmete]

I got a voluntary separation letter late last fall and they said they would take the first 200 applicants. I got the email at 7:45 am and had my paperwork signed and back by 8 am! I heard they ended up with 250 applicants and took them all. It would suck to volunteer and be turned down.


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Jeff

 

[jcretire77]

It's all working out. Both myself and DW's last w*rk day is Sept 2nd, 2016. Wheee!

 

[MBAustin]

Congratulations!!!

 

[38Chevy454]

It's all working out. Both myself and DW's last w*rk day is Sept 2nd, 2016. Wheee!

Glad to hear it worked out for both of you!