My big question that I can’t seem to get answered is - what if I don’t take the VSSP but am walked out next year? I’m retirement eligible. Will I still get to apply for retirement benefits if I am let go without cause as part of a headcount target?
18 replies (most recent on top)
Post ID: @5psa+1c5Ns2vh
I fully understand the question.
Again, why are you asking random people on a blog, that you really don't know even work for FMC, advice for a very significant, once in a lifetime decision, that is retirement?
Just do you self a favor and call NESC.
Again, that is if you are a FMC employee.
@4njo - What I don’t understand is why you didn’t read the question carefully because you apparently don’t understand what was asked. We are not talking about separation packages. We are talking about being involuntarily separated. Others not only read and understood the question but they also provided answers to the question. If I have a question about the VSSP, I will certainly call the NESC. I attended a retirement seminar on Friday, and that answered a lot of my questions. I also asked this question during the seminar. It was skipped over. I’m sure that those running the seminar thought that it was off topic and a bit edgy to bring up involuntary separations.
Question: Why did you post here when you didn’t understand the question, did not have an answer for the question, or have an answer but did not intend to share it? Answer: I have no idea.
Post ID: @1knj+1c5Ns2vh
So let me get understand this. You have been working 30+ years, claim you are retirement age, yet you don't seem to have a basic understanding of how Ford separation packages work? They have not changed much over the last several years.
Why are you asking people on a blog? Is there a reason you can't call NESC where they can review all your benefits and tell you exactly what your are entitled to?
Answer: You are not a Ford employee
@1obj's - Yeah, I pretty much figured he wasn't that clever when you said he also took out cash. I'm guessing he's a classic case of living paycheck-to-paycheck despite having a good salary that would easily enable him to save up against a rainy day.
@2kfm+1c5Ns2vh Nice thought, but my manager isn’t that bright. I’m sure the cash out was so he can pay the over $30,000 in property taxes due on his million dollar mansion in the next few months. His city and county publish it all on line.
Quick off-topic comment about @1obj's boss...
In the light of the expected upcoming inflation due to the HUGE increase in the M2 money supply over the last 16 months it can make sense to take on a lot of debt in today's dollars and pay them off with the less valuable dollars of the future. However, this only works if your not dependent on a single income stream to meet those debt obligations (IE - dependant on the regular 9-5 job) since any one or two streams can easily evaporate. EG - involuntary separations or maybe even tripping on something and smacking your head on the ground too hard. Pretty clear in this case that the bossman may see what the wealthy have been doing to make inflation work for them (IE taking on lots of debt to buy physical assets), but doesn't understand the why & how of it.
For us common folk that missed out on the real estate boat that was being boarded last summer and left the dock back in the winter there probably isn't much opportunity to take advantage of inflation, but merely to hedge against it by avoiding holding on to cash. To me it seems like a very well stocked pantry and full freezer (plus generator & fuel) is one of the better hedges against the leading edge of inflation before wages have to increase out of necessity for businesses to keep running.
Can I still apply for full retirement benefits if I don’t take this offer and are later involuntarily separated? Short answer: Yes.
Regardless of how you leave the company (including voluntary), you call elect to retire instead if you are eligible for retirement.
Don't worry. HR will get around to reducing the involuntary severance pay down to 6 months.
“ Where have you been?”
Thanks for not answering my question and instead telling me a bunch of things I already know.
To everyone who got what I was asking - can I still apply for full retirement benefits if I don’t take this offer and are later involuntarily separated? - many thanks for your answers. Most helpful. And appreciated.
“ Where have you been?”
Thanks for not answering my question and instead telling me a bunch of things I already know.
To everyone who got what I was asking - can I still apply for full retirement benefits if I don’t take this offer and are later involuntarily separated? - many thanks for your answers. Most helpful. And appreciated.
My manager seems pretty worried. He refinanced his million dollar mortgage on his million dollar house, and took cash out. Preparing for the worst?
Cobra coverage begins at the time of separation. If you have 6 months medical coverage through the VSSP and you elect to pay for Cobra after that period, you will only have 12 month remaining on that insurance plan.
Make a list of your questions and call NESC to get to PeopleFirst.
After every conversation they respond with an email and put in writing what was discussed.
You will receive 6 mo. severance ( down from 9 mo. last go around).
You cannot apply for unemployment until after the 6 mo. severance period is past.
You will receive 6 mo. Medical insurance ( excludes dental and vision)
You can apply for COBRA for dental and vision immediately - and pay for it for 18 mo.
You can apply for COBRA for medical after the 6 mo ends and pay for it 18 mo.
Spend time doing financial planning now. This will elevate stress later.
For example if you are not 62 yet, your pension will have a supplemental payment until you are 62.
Before you automatically apply for Social Security @62 go to ssa.gov and create an account. You can see your monthly payment at 62, full retirement age and also if you defer until 70. Then you can make an informed decision. You may be better to defer social security.
Pension vs Lumpsum is a huge decision, so know yourself and spouses habits well and make a plan now. Everyone is different, so everyone needs to do their own thing. I would urge you to be honest with yourself in your decision making. I say this as I have watched several of the 2019 SRD class burn through all/nearly all of their lumpsum.
A quick test - if you are 55+ and have any debt (loans from your 401k /credit card / student loans / car loans /mortgage) then be realistic you are not good with money - take the pension. Don’t be like my buddy who took the lumpsum paid off his 401k loans, boat loan, mortgage, credit card debit, bought a BMW and F150, spent 6 months traveling overseas and now the lumpsum is gone. He is looking for a job and he again has credit card debt. He can’t apply for social security until he is 62.
The easiest person to fool is the man in the mirror.
Where have you been? Since you are retirement eligible your should know the drill and have sufficient resources to prepare for such events.
If you get walked out the door without a Ford pension, you will have the ability to go under Cobra for medical insurance. Currently it is $380 per month for singles and $750 per family. This is only for 18 month then you will have to find other health insurance. Ford will provide job search services. You will get paid any remaining vacation. Hopefully you have a sufficient 401k amount. That is how it works at most large companies.
If you have a pension though Ford it you should already know your options and benefits. If not, go to Life at Ford on the internal website and look up the phone number.
If you are 62 or above you can collect social security also. Once you hit 65 you are eligible for Medicare health insurance.
Can’t say for sure what rules Ford will have in place should involuntary separations occur but during SRD you could not file for unemployment until after your severance period was past. If you received a six month severance you had to wait six months to file for unemployment. You can file for pension immediately. Every one has different goals and needs and your decision depends on yours.
If you are retirement eligible, and you are involuntarily walked sometime between this year and next, file for unemployment first then the once unemployment runs out, file for retirement- I believe that can be done.
Plus, if you have 20 plus years in, you’ll still get 9 months severance- they only changed it to 6 months for VSSP to my knowledge- go to life @ford to double check.
If you are eligible for retirement and are walked out as a part of headcount reductions you go home, call Ford and apply for retirement. I was SRDd and retirement eligible and applied the same day. Happily retired now. I don’t believe you can collect unemployment and retirement at the same time from the same company but other than that no worries.
Yes. If you are home there will be no 'walk of shame'.