What to Ask HR?

[RobotMom]

I'm about 8 weeks away from submitting my intent to retire. My company requires two month's notice and I will (probably) provide an extra two weeks because I have 8 weeks of vacation time saved and don't intend to just walk out the minute I submit my notice!

Anyway, I noticed that there is just not that much information on retirement on the HR website so I am planning on calling to ask questions. Can you guys help me compile a set of questions? What do I need to ask?

I know I want to ask about health care. I have the option of purchasing (at the company's cost) health care for my family. I would like to know if I have to use it continually or if I can use the exchange for a few years but have the option to return. I would like to know how the medical insurance is billed (does it come directly out of my pension check...?)

What else? What else...?

[SecondCor521]

I just went through and asked about every benefit that I cared about and how it worked. My first concern was making sure the plan that I had laid out worked the way I hoped it would. My second thought was seeing if there were any additional nuggets of information I could glean to improve my plan even more.

Some of the benefits that I cared about, and maybe some related questions:

1. Vacation time - How much do I have? What are my options for cashing it out? Is it use it or lose it?

2. Company medical - When does it end (day I leave, or the end of that month)? How much is COBRA? How much is ACA? (In my case ACA was much much cheaper but maybe not as high quality.) You can go on the ACA mid-year.

3. Stock options - What happens to vesting when I leave? When do the options expire if I leave? Mine didn't accelerate vesting and expired when I left, so I exercised my last good batch the day before I gave my two week notice.

4. FSA / Dependent care / etc. - How long do I have to make claims? How much is left in each of these accounts?

5. Profit sharing / bonuses / etc. - What are the timing constraints for when to qualify, and what happens if you leave in the middle of a profit sharing period? Sometimes people find that if they shift their retirement date by one month later, they qualify for another whole six months worth of bonus, which may make that last month quite lucrative.

I also had a company gym benefit and a personal leave benefit which I used, but that would be sort of uncommon I think.

...

You didn't ask, but you might also look at tax planning opportunities for your last partial year. Maybe your income is low enough that you are eligible for a deductible IRA contribution, or you qualify for some credits that you normally wouldn't have in previous years. Also, if your partial-year income is lower, it may make sense *not* to defer into a 401(k) or similar since your marginal rate is lower. I basically revisited every tax item with a critical eye as to whether the standard advice applied in that last partial year. IIRC there were some surprises.

...

I did try, for a while, to hide my intentions from HR and phrase my questions as hypotheticals. Since I worked for a larger company, though, I realized that HR didn't care one way or the other and wouldn't disclose my situation to my manager. So eventually I just said "Here's my plan about retiring in February" and the conversations were easier then. I did choose to work with one particularly helpful HR person to limit the risk anyways.

[Car-Guy]

Interesting, I didn't know a company could "require" any such notice... Does that really mean to be eligible for "some specific benefits" you must give 2 months notice?


My company offered a "2 day seminar" for employees planning to retire in the near future which answered most any question someone could have... Still I was surprised by one thing... The employee subsidy for health insurance was cut by ~50% once you retired... Nobody said anything about that in the seminar...

[RobotMom]

Quote:

Originally Posted by Car-Guy Interesting, I didn't know a company could "required" any such notice... Does that really mean to be eligible for "some specific benefits" you must give 2 months notice?

Yes, my understanding is that they require two months to transition me to the retiree benefits and pension. I could go earlier, of course, but then there would possibly be a gap. I had someone work for me who was, at first, planning to just resign. Then she realized, she was eligible to retire. She learned that, in a pinch, HR **might** be able to speed up the timeline to a month.

[Car-Guy]

Quote:

Originally Posted by RobotMom Yes, my understanding is that they require two months to transition me to the retiree benefits and pension. I could go earlier, of course, but then there would possibly be a gap. I had someone work for me who was, at first, planning to just resign. Then she realized, she was eligible to retire. She learned that, in a pinch, HR **might** be able to speed up the timeline to a month.

OK, that makes sense... So no real loss in benefits, it's just a "timing thing" to get your benefits...

[38Chevy454]

Just curious, is there a reason to use up your vacation before retiring, as opposed to getting cashed out? Have you thought about maxing out 401k/403b type investment for the year? Might be able to use that vacation money to accomplish that by increasing contribution to 100% or what company max percentage is.



In regard to your benefit questions, the best is to probably schedule a mtg with a person in HR that specializes in retiree benefits. That person can provide answers to your questions that are not on the website. Do you have an employee handbook? That may have more details.

[RobotMom]

Quote:

Originally Posted by 38Chevy454 Just curious, is there a reason to use up your vacation before retiring, as opposed to getting cashed out? Have you thought about maxing out 401k/403b type investment for the year? Might be able to use that vacation money to accomplish that by increasing contribution to 100% or what company max percentage is. In regard to your benefit questions, the best is to probably schedule a mtg with a person in HR that specializes in retiree benefits. That person can provide answers to your questions that are not on the website. Do you have an employee handbook? That may have more details.

I could cash my vacation but want to leave as early as possible. However, I get a full year of company paid insurance if I retire on August 1 - so I need to retire then but want to leave ASAP and have a fun summer. So I am going to be gone as of Memorial Day yet not have an "official" retirement until July 31. (For example, if I actually retire on May 31, I only get the company paid insurance until July 31 - so retiring July 31 maximizes this benefit).

I have set up my 401k so I will hit the max deposit by the time I retire. Definitely wanted to do that!

[Brat]

Take a look at your health insurance benefits, things that are annual like eye exams and glasses. Hearing test, hearing aids? You may be switching HC providers which do not have as generous benefits.

[mystang52]

I may not be reading your vacation plans correctly. If you were not retiring, would you be allowed to take an 8 week vacation? Do you plan to take 8 weeks off, and then work for 2 weeks? Is there a maximum cash-out of unused vacation? It's possible you need to take some vacation time before letting them know of your retirement plans.

[naggz]

Make sure you are entitled to the full 8 weeks of vacation, and that none are lost due to working less than the full year.

[OldShooter]

A company of any size will have a standardized prospective-retiree briefing package and checklist. Not that you shouldn't go in with a list of questions. You should. But the standard briefing will probably cover most of them. Also, anything in the standard briefing is probably non-negotiable. If you have requests that are outside the briefing scope you may have a chance.

[pb4uski]

Quote:

Originally Posted by Car-Guy ... Still I was surprised by one thing... The employee subsidy for health insurance was cut by ~50% once you retired... Nobody said anything about that in the seminar...

Well, at most companies the employee subsidy for health insurance for retired employees is cut by 100% rather than ~50%... so consider yourself lucky!

[Car-Guy]

Quote:

Originally Posted by pb4uski Well, at most companies the employee subsidy for health insurance for retired employees is cut by 100% rather than ~50%... so consider yourself lucky!

At first I was a little PO'd that they didn't at least mention it to us, but after being retired 10 years I consider myself very lucky to get out when I did...Looking back, the 50% reduction in the medical subsidy wasn't really anything in the bigger picture. Since I've left they have had numerous force reductions (with another 10% planned this year.) Salary increases have been pretty much just to keep up with inflation, no growth. 401k matching was discontinued, and the companies stock is down ~30% in past decade. Those are just some of the highlights.

See what they lost when I retired....

[PoorOldCountryBoy]

Quote:

Originally Posted by RobotMom I'm about 8 weeks away from submitting my intent to retire. My company requires two month's notice and I will (probably) provide an extra two weeks because I have 8 weeks of vacation time saved and don't intend to just walk out the minute I submit my notice! Anyway, I noticed that there is just not that much information on retirement on the HR website so I am planning on calling to ask questions. Can you guys help me compile a set of questions? What do I need to ask? I know I want to ask about health care. I have the option of purchasing (at the company's cost) health care for my family. I would like to know if I have to use it continually or if I can use the exchange for a few years but have the option to return. I would like to know how the medical insurance is billed (does it come directly out of my pension check...?) What else? What else...?

If you have friends at the company who have retired in the last few years, call them and ask for advice. Usually if they had a problem that you should be aware of they'll be happy to share!