Any Australians? Did you volunteer? What are your thoughts on situation? Who is left?
11 replies (most recent on top)
The Defined Benefits plan (before ~2005) enables you to take your retirement benefits as a lump sum, or as a pension payment every year. For a long time the conversion factors were fixed for each age - so if your lump sum was $1M and you were 55yr old, the conversion factor was ~13, so you could elect to take an annual pension of $78k. The conversion factor from 1 Jan 2021 at 55 is now ~18, so your annual pension is $54k. The lump sum stays the same, but the calculation is different. Feedback from management was that the review of the pension plan by the actuaries had been ongoing for sometime, and it was a coincidence it was announced on the same day!
What was the 40% pension reduction in Jan 2021? Can you explain?
Promotions lol. Promoted to what in a shrinking organization. Can’t lead an empty room. Wake up!
If they are scrambling are they prepared for emergency response, etc? Sounds concerning
The aussie program was attractive only because of the fact that employees could receive both their old pension amounts and long service awards in a lump sum. The actual package was capped at 52 weeks (a year). 55+ yo would potentially receive a few years worth of pay, even more if you compared it to the reduced pension.
The 300+ that took the package was several times what was targeted. Leadership now scrambling to fill holes and streamline roles (out of necessity and way ahead of schedule).
Remaining employees are pretty chill as it means their jobs are fairly safe and there's alot of room for promotions
Nothing but respect for my Australian colleagues. Great people in Australia.
Wow. Had not heard of the pension reduction. Talk about a stick rather than carrot approach!
360 going out of ~1500 employees. The change in the defined benefits plan was what drove anyone over 55 out - basically a 40% pension reduction from 1 Jan 2021 if you did not retire and take the pension now. Doing the VR program at the same time is absolute madness - have lost many more people than necessary. Our management has not really thought this one through.....
Leadership that is left only knows how to post about the importance of a diverse workforce but not actually run a profitable business.
Those of us who missed the deadline are looking around realizing We should have left while we had the chance.
Huge brain drain happening. The best are leaving as they are confident in their ability to find a new job.