FIRE by Trial

[retire2020]

I just resigned. We had several re-orgs at my MegaCorp in past three months and my role from global was changed to local customer base. Worst of all was last Friday when I got paid for end of July and found out by surprise that my base salary was cut by 8% and that too was retroactive from July 1st! No one communicated pay cut through out last three months and through five diff managers in just three months. I knew and found out once again that loyalty is one way street in Corporate America. I felt insulted the way I was treated after 7+ years at this MegaCorp so I just handed in my resignation with two weeks notice.
Not the way I wanted to end my career but it's what it is! Thank god that my skills are very marketable but I will not be actively looking and consider my self FIREd.

My plan is simple.
- 3M AA split 65/35....will change to 60/40 soon
- Withdraw 3% every year ---> 90K
- DW's part time consulting..30 Hrs/Month will bring in 30K/yr
- 80K is essential expense and rest is discretionary

Our daughter has four more years of college left. Twin boys will attend college in six years. Education is fully funded and not in that 3M. DW will continue her part time job for six years. Will then re-evaluate WR in six years when DW stops working.

My taxable investment generates 60K yield so in worst case I'll withdraw 30K from short term muni bond for coming six years assuming all downhill from here.

Will need to figure out health insurance. Planning to use COBRA for rest of the year.

Yes...I'm scared! But will deal with it as it unfolds!

[splitwdw]

Looks like your twin just retired and posted here too!

[cathy63]

Quote:

Originally Posted by retire2020 ...Worst of all was last Friday when I got paid for end of July to find my base salary was cut by 8% and that too was retroactive from July 1st!...

It is illegal to change an employee's salary retroactively. You should point this out to your payroll department, and if the response is not to immediately fix the problem, file a wage claim with your state's department of labor.

I assume that one of your managers was supposed to notify you of this at the time they told you about the change in responsibility, but it probably fell through the cracks. Unless they can prove that you were told, you should have a good case to get your previous pay rate for July.

[retire2020]

I asked the same question to my new manager of one week that is it even legal to cut employee's pay without even communicating to him. She offered me her apology that she should have done that but missed as she also had entire new team reporting to her. She is a very nice person and my action about my pay cut would only put her in trouble. I would like to remember first seven years with MegaCorp and forget the last three.

[VFK57]

I think you are going to be OK, the only challenge is med insurance after the COBRA, may be ACA will provide it. Most major corporations (if not all)are cutting their expenses without any regard to loyalty and past great results, especially in difficult economic times.

[Sunset]

Quote:

Originally Posted by retire2020 I asked the same question to my new manager of one week that is it even legal to cut employee's pay without even communicating to him. She offered me her apology that she should have done that but missed as she also had entire new team reporting to her. She is a very nice person and my action about my pay cut would only put her in trouble. I would like to remember first seven years with MegaCorp and forget the last three.

She is snowing you.
It does not come out of her pocket.
I missed what you said you got as severance pay ?

Her feeling good/bad does not pay your phone bill and assuming a random number like you make $6,000 per month , then 8% is $480 - that is a lot of phone bills.

And now I see she was your manager for 1 week. It's not her fault, it's fault of higher up, and they should pay.

[38Chevy454]

X2 to go to HR and make them pay you. What do you care, they screwed you and now you are leaving. So make them pay up. Megacorp will not miss the money, but you certainly do.

Oh yeah, congrats on being in good financial position that you can FIRE, and not be forced to accept the megacorp BS.

[MBAustin]

Quote:

Originally Posted by 38Chevy454 ...congrats on being in good financial position that you can FIRE, and not be forced to accept the megacorp BS.

+1

Good for you to go out on your own terms. Plan something fun for the first few w*rkdays that you don't have to.

[rodi]

I'd say you're good financially.

But I agree with pursuing undoing the retroactive, un-notified, paycut. It's not your most recent manager's fault/issue - since she was only in the chain for 1 week.... You should have been notified July 1st or sooner.

If you got severance - make sure it uses the previous pay rate (before paycut) as a basis. Same with any unpaid vacation hours.

The company sound excessively slimey.

[Onward]

I LOVE the title of this thread.

[Markola]

Wow, what management chaos. Congratulations on having created your own parachute and deploying it with your sanity intact. Your megacorp wouldn't happen to start with "Ya" and end with "hoo" would it? . Sounds awful!


Sent from my iPad using Early Retirement Forum

[retire2020]

Thank you all for your comments! 8% comes out to be about 14K/yr. No severance offered as I am resigning. I'll still ask for severance but do not have any hope. Its me vs MegaCorp so no surprise who will win! My MegaCorp is not Yahoo but an elephant size IT company with about 400K employees world wide..
Last 32 years of LBYM and disciplined savings made me FI and it feels great to just walk out. Only time will tell if that was a right decision but right now I've no double thoughts about my decision.

[Golden sunsets]

Is it possible that you are victim of age descrimination? I don't see your age stated.


Sent from my iPad using Early Retirement Forum

[EastWest Gal]

Quote:

Originally Posted by retire2020 I just resigned. We had several re-orgs at my MegaCorp in past three months and my role from global was changed to local customer base. Worst of all was last Friday when I got paid for end of July and found out by surprise that my base salary was cut by 8% and that too was retroactive from July 1st! No one communicated pay cut through out last three months and through five diff managers in just three months. I knew and found out once again that loyalty is one way street in Corporate America. I felt insulted the way I was treated after 7+ years at this MegaCorp so I just handed in my resignation with two weeks notice. Not the way I wanted to end my career but it's what it is! Thank god that my skills are very marketable but I will not be actively looking and consider my self FIREd. My plan is simple. - 3M AA split 65/35....will change to 60/40 soon - Withdraw 3% every year ---> 90K - DW's part time consulting..30 Hrs/Month will bring in 30K/yr - 80K is essential expense and rest is discretionary Our daughter has four more years of college left. Twin boys will attend college in six years. Education is fully funded and not in that 3M. DW will continue her part time job for six years. Will then re-evaluate WR in six years when DW stops working. My taxable investment generates 60K yield so in worst case I'll withdraw 30K from short term muni bond for coming six years assuming all downhill from here. Will need to figure out health insurance. Planning to use COBRA for rest of the year. Yes...I'm scared! But will deal with it as it unfolds!

Ditto re: retroactive cut in salary. Don't you have a contract or employment agreement? I wouldn't care if the new manager is nice or not. It was her job to make it right. I agree with going to HR about this. And going to the state department of labor.

Many of us here buy our own insurance on our own or through ACA. It's all pretty darn expensive and the costs seem to be going up astronomically. But it is easy to get. Start looking into it now. You can browse the plans and compare to your COBRA costs. BTW, you don't have to pay for COBRA immediately, you have 60 days, or until you first use it. It's too bad you didn't wait until Monday. You would likely have coverage until the end of the month.

My last day was Sunday, and my assets and spending are the same as yours. I have been ready for this for years. Once the shock wears off, you'll begin to enjoy your freedom.

Hanging around here helps a lot too.


Sent from my iPhone using Early Retirement Forum

[retire2020]

Quote:

Originally Posted by EastWest Gal Ditto re: retroactive cut in salary. Don't you have a contract or employment agreement? I wouldn't care if the new manager is nice or not. It was her job to make it right. I agree with going to HR about this. And going to the state department of labor. Many of us here buy our own insurance on our own or through ACA. It's all pretty darn expensive and the costs seem to be going up astronomically. But it is easy to get. Start looking into it now. You can browse the plans and compare to your COBRA costs. BTW, you don't have to pay for COBRA immediately, you have 60 days, or until you first use it. It's too bad you didn't wait until Monday. You would likely have coverage until the end of the month. My last day was Sunday, and my assets and spending are the same as yours. I have been ready for this for years. Once the shock wears off, you'll begin to enjoy your freedom. Hanging around here helps a lot too. Sent from my iPhone using Early Retirement Forum

I'm an employee and not aware of any agreement. will need to look into. Thanks for the info on 60 days COBRA period. I did wait until Monday and resigned with two weeks notice so 8/15 is my last day at MegaCorp.

[retire2020]

Quote:

Originally Posted by Golden sunsets Is it possible that you are victim of age descrimination? I don't see your age stated. Sent from my iPad using Early Retirement Forum

I do not think so. I'm 51. Multiple re-org and I am one of their victims regardless of age. There are many in the same boat and hanging around because they can not afford to quit. Whether were the communicated about the cut I do not know.

[Philliefan33]

I also agree that you need to pursue the "retroactive pay cut" situation. Do not let Megacorp get away with that.

Because of your good planning, you are in the position of not needing the higher pay for July. But would you rather the money line some executive's pocket? If you won't do it for yourself, think of the co-workers you are leaving behind. They probably need the retroactive pay more than you do, but are not in a position to jeopardize their job by making waves.

[Johnora]

Quote:

Originally Posted by retire2020 Thank you all for your comments! 8% comes out to be about 14K/yr. No severance offered as I am resigning. I'll still ask for severance but do not have any hope. Its me vs MegaCorp so no surprise who will win! My MegaCorp is not Yahoo but an elephant size IT company with about 400K employees world wide.. Last 32 years of LBYM and disciplined savings made me FI and it feels great to just walk out. Only time will tell if that was a right decision but right now I've no double thoughts about my decision.

Well done, well played, well prepared!!

[Aerides]

Any manager at any Mega that was doing something as big as widespread wage cuts was told repeatedly by HR and her leaders that all staff had to be informed by X date. She was also asked to confirm all staff were communicated to by X date, probably both to HR and her boss.

So you didn't slip through the cracks. She just blew it and probably not just you but many people. She might be nice, but she's possibly incompetent and probably lied more than once saying she had done all the talks.

I get the feeling it wasn't even widespread, and just a surgical few - or you would have heard it from your peers. If I wasn't told officially, my grapevine would have lit up. You aren't being told the whole truth and should pursue via HR. 8% of a 6 weeks isn't nothing. It's going to cover at least a month or two of cobra...

[retire2020]

You all convinced me. I will approach HR/Payroll about un informed retroactive pay cut.


Sent from my iPhone using Early Retirement Forum