Asking for an early retirement package

[JoeWras]

I'm going through this process now. I don't know how it will end.

One way or another, I'll let you know.

Can't give details right now.

[jim584672]

My company did packages now and then. I asked and eventually got packaged with severance and UI, well worth it if you can pull it off.

[aja8888]

To the OP: Check and see if your state is an "employment by will" state. If it is, you can be fired/let go without cause. Bringing up your intention for a "package" in one of those states can result in receiving a pink slip very quickly.

[Lurking]

When I left my Megacorp, I think asking for a package would have seemed a little much but I did let my director know about nine months or so in advance that if he needed to put people on the list for a future RIF that I should be on the list before any member of my team.

I had worked with this person for more than a decade, so I knew they would take it the “right” way. I like to think that it showed loyalty to my team and served as a favor to him — as a manager, reducing headcount is a very stressful time. Knowing my feelings ahead of time made it easier on him to find the cost reductions and also gave my team an opportunity for growth and advancement by taking over my role. The fact that I was ultimately shown the door with a severance package was icing on the cake for me.

In my case, my final day was about a month before I became part of a protected age class and two days after the birth of my children. The optics of the layoff probably looked bad to an outside observer (Laid off in the middle of paternity leave? Ouch!) but I saw it as a win for me, a win for my manager and a win for my team.

The way I figure it, many people can find themselves in a declining work situation that may very well lead to a lay off. Heck, for many of us, that might be the extra push we need to get over OMY syndrome. In those cases, I think you can share with a trusted manager that you would understand their decision if you were ultimately part of their headcount reduction. Just be careful not to come off as a greedy layabout and instead frame it in a way that aligns the project goals with your personal goals. You want to come across as a committed employee willing to take one for the team, not an entitled slacker with one foot already out the door.

[KCGeezer]

After retiring from 30+ yrs at my ‘career job’ I took a job installing some software and redesigning processes for a sister organization. The understanding was that I’d commit to 2-5 yrs. The implementation went smoothly but the organization was obviously headed for a rif. I bided my time and when the budget meetings started I let the guy who had recruited me know that since it was over the 2 yr commitment I planned on leaving in a few months once things had settled down.

I was asked by current manager a couple of times over a month or more what my timeline might be. I demurred to commit until she said ‘I need you to put something in writing’. I submitted a letter saying I was going to retire 5/31. Since I was a high paid age protected employee, I got the package (albeit a small one since I’d only been there a couple of years but better than nothing) and a couple of young coworkers got to stay on.

Love it when a plan comes together.

[Dash man]

My team lead took an early retirement package about a year before I left. The package was offered only to his pay grade and up about three levels. I didn’t have the option. I’m sure they would have refused mine anyway since he left. I knew my job was pretty secure after his departure, so when I was ready a year later I gave three months notice to allow them to hire someone and for me to train them. It worked out nicely, except no package for me.

[RunningBum]

I wound up with 3 months exit pay, in return for training my replacements overseas (via phone and email, I wasn't going to travel there), because I had let my boss know I was ready to go. I only did that because he was also a friend and I trusted him. I would not have done that with all of my bosses. He also did things like get me a bonus rather than long-vesting RSUs. But he couldn't get me the primo voluntary retirement package that had been offered earlier, that I couldn't get because I wasn't old enough. Tread carefully.

[fleefromhome]

Good luck to all who are hoping to get riffed and severance from MC. I just found out my former IT MC adopted a new severance policy - NOTHING, ZIP, NADA. I imagine layoffs are coming. This trend is distressing and soul-less.

[youbet]

Quote:

Originally Posted by jmwh7626 I plan to retire within a year or so

There is the key. Do you think your retirement plans are suspected? Or does your management believe you're still fully locked in on your career and will continue to be so for several more years?

Are there any downsizing actions taking place now or in the recent past where severance packages were defined and utilized? That would help, especially if ongoing downsizing is on the agenda and you identifying yourself as a voluntary victim would save someone (likely younger) else.

In discussing your hopes of volunteering for a package, be sure to have a convincing story as to why MC will be better off spending money on a package for you as opposed to simply accepting your retirement application and perhaps popping for a luncheon and gold watch. That is, be able to explain "what's in it for them" and why MC will be bettor off following that path.

[aja8888]

Quote:

Originally Posted by fleefromhome Good luck to all who are hoping to get riffed and severance from MC. I just found out my former IT MC adopted a new severance policy - NOTHING, ZIP, NADA. I imagine layoffs are coming. This trend is distressing and soul-less.

What trend? layoffs? Goodbye packages? Neither are guaranteed.

[youbet]

Quote:

Originally Posted by fleefromhome Good luck to all who are hoping to get riffed and severance from MC. I just found out my former IT MC adopted a new severance policy - NOTHING, ZIP, NADA. I imagine layoffs are coming. This trend is distressing and soul-less.

If someone is hoping to be RIF'd and receive a severance package when their true intention is RE, I'm not as sympathetic. Severance packages are intended to help those involuntarily terminated from employment get through possible tough times between jobs. They're not really meant to be a "retirement bonus."

If you're intent on getting a bonus (buy-out) when you leave your employer at your own discretion, better have that in an employment contract up front.

In terms of compensation to satisfactory employees who are victims of RIF's and are not permanently and voluntary retiring from the working world, I do agree with you that providing some outgoing financial help should be done.

[brett]

Good advice here.

Whatever you do, DON'T speak with HR. Keep you ear to the ground and your mouth buttoned up. Be very careful about that discussion and only do it with a boss who you trust and have history.

Don't give the show away by talking about your desire for early retirement. Only ask about downsizing, rightsizing, etc...whatever your firm calls it. Once you are in that conversation there are ways of signalling that you would not be upset if your name was on the list. This is how it worked where I worked. We had 18 years of constant downsizing.

[fleefromhome]

Quote:

Originally Posted by aja8888 What trend? layoffs? Goodbye packages? Neither are guaranteed.

I was speaking about a trend in companies taking away severance.

[Dash man]

Quote:

Originally Posted by fleefromhome I was speaking about a trend in companies taking away severance.

I doubt the higher ups will leave without a severance, no matter what they do. I remember a guy that had seven counts of sexual harassment pending. He left with a large seven figure package. Must have been nice to be the son of the Chairman of the Board!

[aja8888]

Quote:

Originally Posted by Dash man I doubt the higher ups will leave without a severance, no matter what they do. I remember a guy that had seven counts of sexual harassment pending. He left with a large seven figure package. Must have been nice to be the son of the Chairman of the Board!

I would assume that at a senior level, many exec's have the severance package spelled out in their work contract.

[IMATERP]

I took my package on December 15, 2017. Accepted 9 months of pay and $5,500. (As a health subsidy.). For me, it was the right decision to "volunteer" because I was somewhere between "burnt out" and "frustrated."

I am very grateful that I spoke with my Supervisor several months earlier as she recognized that I was near the end of my rope and assisted in recommending me for the buyout.

By the way, I do not receive my first retirement check until January 2021, but I had monies saved, access to decent healthcare, and valued peace and serenity over aggravation.

It was an easy call and 7 months later I have a low key part time job and a nice balance of activities and flexibility with life.

I

[harley]

Quote:

Originally Posted by youbet In discussing your hopes of volunteering for a package, be sure to have a convincing story as to why MC will be better off spending money on a package for you as opposed to simply accepting your retirement application and perhaps popping for a luncheon and gold watch. That is, be able to explain "what's in it for them" and why MC will be bettor off following that path.

There's almost no way that could happen, which is why you don't go to HR or upper level management about this. It's not a win for them, just for you. However, assuming you have a decent relationship with your direct boss, not losing a head count (unlikely to ever be replaced) along with a retiree (also unlikely to be replaced) can be a significant win. You appeal to the best interest of an individual within the MC, not the soulless MC itself. Then it becomes a possibility and is worth pursuing.

[Splash]

As a manager, I facilitated some employees getting severance packages that would not have gotten them if they hadn’t confided in me. My advice includes:

• Don't talk to HR or give a definitive end date to anyone. At my MC, this was considered "giving notice" and made the person ineligible for a package.
• Talk to a trusted manager. Let him/her know that you have reached a point where you are financially secure but haven’t set a retirement date. However, you want him/her to know that you would be interested in volunteering for a severance package to save another employee if the opportunity arises.
• If your initial conversation goes well, consider making suggestions to this trusted manager on how work can be eliminated or automated for your team. Also share ideas on how work could be redistributed to eliminate your position.

When employees shared their thoughts with me, it helped me to redesign the work in a way that got them the package they wanted and created more fulfilling positions for those that stayed with the company. It was a win for everyone.

[brett]

splash...it was the same for me.

In fact, I wanted to know. I was called upon on a regular basis over at least 10 years to reduce headcount. I would much rather provide a package to a team member who was planning to retire instead of one who was not.

That way I would be down only one headcount instead of two (we often had hiring freezes). Plus I would have made at least one employee very happy.

But the smart ones did not advertise it. And certainly not to HR or any blabber mouths that they may work with. I did take notice of those who were in the early retirement age and who I knew would be pre disposed to a package. In most cases they came to me or one of the managers. More than a few times I had a quiet word with someone to sound them out. Then we made the 'appropriate' layoff or downsizing decisions.

[wolf]

Quote:

Originally Posted by MichaelB IMO asking for and getting a severance / retirement package is a low probability event with a fair risk of alienating management, unless one has a senior management position.

+1. Appreciate concise advice. Been there. Could not agree more.