Originally Posted by Al in Ohio
I smh when I see someone planning to retire on the 30th or 31st of the month, or just days before a holiday. That also conflicts with a LBYM mindset. Just the extra month of company paid health care by working the first day of the next month is worth about $1,000 by working one day in that month. Why not grab a whole extra paid month of healthcare by working on the 1st? Don't take the mindset that your making it easier for the companies accounting department or it's cleaner on the books. That's foolhardy.
I realize this is an old post, but felt compelled to address Al's generalization that folks should retire on the 1st rather than the last day of the month.
The way it worked at the megacorp where I was: Retirement checks are cut on the 1st day of the month. If you retire on the last day, you get a check the next day. If you retire on the 1st day, it is 30 days later when you get a retirement check. Health benefits are a part of the retirement plan, so coverage is seamless.
The company where I worked had an on-line retirement calculator. You could put in a hypothetical retirement day, and it would calculate the pension amount. One would expect that the pension amount would be a ramp type function, but it was not. There must have been numerous look-up tables as well as math calculations, because the amount was not a linear growth. (Not a big difference, but for an audience where we would stop to pick up a nickle on the sidewalk, it was a noticeable artifact.)
My pension has a reduced survivors benefit. This was obviously a lookup table. The amount changed an appreciable amount during the month of DW's birthday. After her birthday, but before mine, she is 1 year older than me. After my birthday, before hers, we are the same age. (Using integer values.) My birthday is in June. If I retired the end of June, the pension would be less than if I retired the end of May. If I retired the end of November, it was a decent step up relative to the pension amount on the end of October.
For mid-level management, there was a 2nd tier bonus that was dependent on being employed on the 30th of April. Thus, my logical retirement date was either 30 April or 31 May, for a spring type date. The fall date was 30 November. If I stayed a few more weeks you got into a lot of paid holidays, plus my new vacation year. So it really didn't make much sense to go between 30 November and 30 April. A number of years before I retired, I knew my retirement date would be either 30 April or 30 November. I just had to figure out what year!