What do you think?
22 replies (most recent on top)
At this point, I'll go for a yearly subscription to Omaha Steaks or a nice fruit basket.
I agree. There are a lot of older people retirement age, not just at Exxon, that just cannot retire. They are helping support their children and grandchildren. Whether they’re paying the mortgage, buying groceries, clothing, helping with college or they lost their jobs and had to move home. These are trying times, I wish everyone the best.
@1uzb+17DDF0ay Who are you to tell someone else to leave now. You are the definition of narcissism. Get over yourself. You are not the center of the world.
Shame on you for telling others how to live their life. Get lost you troll.
Shame on those who are retirement eligible and dot not retire and wait for the package. I understand every situation is different but if you are eligible just go. You might have great competency but younger folks will step up. Recognize you had a good run with the company and it’s time to give back by taking you off the payroll and leave the spot for the younger folks. 40+ years of service and still “hanging in there”, really?
What about a 5/5/6?
5 minutes to clean up your desk
5 minutes to get the hell out of the site
6 months before starving to death if you don't find another employment :)
Ih I would love to get age and severance too! But if I am only offered service I will still go.
@fyd+17DDF0ay, wouldn’t you want 2 years added to your service to put you at 15?
It’s age/service years/severance pay.
I just want to go. Take what I can. We have saved for a long time and paid our house off. No debts equals freedom. Would not be ideal but I would do it even at 2,0,0. Plus if I go its one less layoff and I could take some personal comfort there. Of course I hope for more but at least to go. Lay low a year or 2 years then maybe do consulting.
You must be on the EMDC or upstream promotion system and salary curves which explains the current $400/hr GP bill rate. Good for you.
I am 56 with 13 years. I would retire with a 2,0,0. Anything over that is gravy.
3-3-2! I would take it and not look back.
Just curious ...when you turned 50 yrs of age whether it was in January or November, you could start contributing more to your 401K the YEAR not the MONTH you turn 50. Will that also be the same for a 2-2-1 package? Say the package is effective in January but you don't turn 53 till Feb...would you still qualify? (if it is voluntary of course)
It is truly very simple math and economics tied to your personal situation which is easy to calculate if you were or are one of the the “best and brightest”.
The lump sum interest rate is a significant reduction from 4Q20 to 1Q21 and is at all time historic low; and the vacation pay on retirement has special provisions for a retirement on December 30th or December 31st that allow for full pay of accrued 2021 vacation pay if you retire on these two dates in 2020; which would be 6 weeks vacation pay for most retirement eligible plus any carryover.
So no one of perfectly sound mind would take any severance package that does not fully pay their unused 2020 vacation and six weeks of 2021 vacation. Just the vacation pay and lower discount rate is huge consideration for the actual retirement date and benefit commencement date.
In a circumstance of 25-30 year employee, this is real cash of $100k to $300k for ensuring your BCD is at least Jan 1 or later in 1Q21.
Then the next step in the personal equation calculation is to do the math on the lump sum discount factor of 5% per year for every year you may retire before age 60 versus when you would expect to retire in next few years if you survive the impending future circumstances; such that if you are over 55 but planned to retire at 60 are you able to withstand the upto 25% lump sum discount and also missing the last upto 5 years of your annual pay, noting your investments of the reduced lump sum can be invested an earn 5-8% in stock market if reasonably invested over the coming years.
Another very very important factor on the analysis is also understanding that the current 1Q21 lump sum interest rate is at all time historic low , resulting in the highest lump sum payouts ever historically seen, and that it is quite likely in 2-3 years from now, the rates will rise and reduce your lump sum at later payout date by $100k to $300k.
After running multiple scenarios for my circumstances of being retirement eligible (or nearly so) and nearly close of about 25-30 year employee, the math and economics play out as follows.
Happy to volunteer only if (a) 2 week pay for every year of service for at least a minimum total 1 year max salary paid out on in 2021 to avoid major tax penalty versus if paid in 2020; (b) minimum 2 week of service for every year of employment with no minimum added to years of service for pension calc; and (c) minimum 2 weeks of age for every year of service added to age for pension calculation.
For points (b) and (c) these are offsetting the 5% per year discount factor applied to retiring before age 60 and for about a 3% per year discount for every year you leave early and not having longer time in service (1 year missed at 1.6% per year increased payout on near 30 year employment).
Otherwise, if this is not offered; I will continue to try to work as I have to pay as sole provider for elder care of four 80-85+ year old plus parents and parents -in - law that require full time assisted living and also special needs child that requires extensive help. Kinda sandwiches from above and below with significant financial obligations that I and my spouse have chosen to take on.
Every person and family is unique and needs to run their own numbers. If any package offered were not to meet my personal needs , that is ok , I can also consider a pressure relief valve of sellIng my house and movIng to smaller home and adjusting lifestyle as needed.
The company owes me nothing, they paid me beyond fairly. I owe the company my appreciation for giving me the opportunities that I have had over nearly 25-30 year of a career; full of Big ups and downs.
Growing up in America, the only thing I know is work ethic, and no one is entitled to anything other than what they have earned for each day they showed up to work. Nothing more or nothing less.
In conclusion, the above perspectives are shared by a “Good” this last year, with clearly knowing I have to be moving into an NI or NSI in April 2021 and further clear awareness with understanding that I very most likely will be PIP’d in 2021 or no later than 2022.
I should have mentioned include the Monte Carlo simulations for likelihood of being PIPd in your analysis:)
Live true to yourself and your family needs and best wishes “we” all come out for the better and preserve our health and best family circumstances possible.
This post is only intended to help those whom will be faced with a unique choice of receiving a severance offer in the coming weeks.
Do your research and reach out to you trusted friends to help you arrive at clear understanding of the scenarios in play that will be of potential significant financial impact to you and your loved ones.
Can someone explain to me what these 3-3-2 and 2-2-1 etc., etc, means? Thanks in advance
I’d jump at 2-2-2 or 2-2-1. Anyone saying no chance of that happening doesn’t know what they’re talking about. All speculation until a few weeks from now when they announce whatever they are going to announce.
3-3-2 - and stock back at 60 so I can IRA it.
ExxonMobil doesn’t do voluntary. It will be involuntary and they will simply pass over those near retirement. They just used the appraisal system to “layoff” a couple thousand employees with no severance. What makes you think they will now have retirement incentives and offer a voluntary program? Past is prologue.
15/15/4
0/7/3
Just need to be 55
It would take 4-4-1 now because I have the age but now the years of service. IF 3-3-1 were offered (big off I understand) on January 1 I would take it and run.