So, anyone know if you get laid off in 2021, can you still buy into the Management Transition Plan to get the subsidy? I would be MR75 eligible in June 2022, so trying to decide if I still have a shot at the subsidy.
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Keep in mind....
MTP has absolutely nothing to do with Pensions or Medical Subsidies.
MTP bridges your time if you are within 24 months of qualifying for MR75.
Unlike if you really qualify for MR75 where you can "retire" with the full benefits you qualify for...it only provides NON-MEDICAL and NON-PENSION retiree benefits...basically product and services retiree discounts.
You cannot participate in MTP if you have met your MR75 numbers and I'm not sure why you would.
"If anything, people who are mr 75 should probably leave right about now. They stand to lose a lot if they decide to stick around till 2022"
Maybe, maybe not. Per another post, if you are MR75 or will be next year, it's imperative that you determine FOR SURE whether you are or are not eligible for subsidized medical. Many are not. I was. The quickest way to check is to look at your latest YTR statement (from Feb 2020, covering 2019 compensation). There is a section "Medical Benefits In Retirement" that definitively tells you the answer. Also if you didn't get this email yesterday that many are talking about, safe bet that you were not eligible either. But check your YTR anyway.
"They would not get any huge benefits by laying off people who are not mr75. "
Absolutely true. We are essentially disposable contractors now. They reduced vacation time, narrowed pay bands, eliminated part of the bonus, reduced pension credits, and eliminated healthcare benefits for everyone who is not eligible to retire yet. If the company gave you a cheap gold watch at retirement, they would take that away too.
They would not get any huge benefits by laying off people who are not mr75. They have already reduced the pension rates for all. Hence this ultimatum for mr75 folks that they leave or they stand to lose the subsidy. If anything, people who are mr 75 should probably leave right about now. They stand to lose a lot if they decide to stick around till 2022. Especially if they are someone who would need Medicare
MTP is supposed to be the bridge if you are laid off within 24 months of qualifying for MR75. You give up most of your severance pay to bridge the gap to retire with full benefits. No idea if MTP will still be valid up until the new policy changes effective 1/1/2022. I wouldn't put it past them to rewrite these rules too.
I believe once you qualify for MR75....you do not qualify for MTP if surplused. The MTP is to fill the gap for non medical retirement benefits for managers within 2 years of meeting their magic number.
If you get layed off prior to MR75...I don't know how you can qualify for a subsidy. You have to get to your magic number to get the subsidy if you qualify.
I heard that todays email stated that if you don't retire in 2021 and you are subsidy eligible you will lose that subsidy if you retire in 2022 or later.
I'd be surprised if its still available when you hit your number in 2022.
Good luck!
I don't think anyone knows for sure...but my guess would be if you are MR 75 already, your job is relatively safe next year if you want it. The medical thing is HUGE for many people, they will get many folks leaving in order to keep subsidized medical benefits. I don't see them selecting MR 75 folks for layoff... and then having to pay them severance as well as their healthcare subsidy.
If you've seen the great rates of their "access only" healthcare plans (so wonderful and generous of them to allow you full cost access)...many would do better on the open market.
This is only my opinion but I doubt they will offer any extras if they do layoffs, like adding time. Why would they? They will get a mass exodus this time next year. They obviously don’t care about us!