Why are some people that are already in the system as retiring this year getting walked out. One example is retiring September 1 but walked out this week. Why would this person get 9 months severance as a bonus if already leaving. Only thing I can think of is the company may benefit on the backend. Meaning that the persons lump sum pension is based on 2023 calculation opposed to now with 2022 calculation. As many already know it’s predicted to be a 20 percent reduction in 2023 vs 2022. Does anyone know how the involuntary separation works as it relates to the lump sum calendar year 2022 versus 2023 numbers? I can’t help but think there is a hidden agenda to benefit the company some how in this real life senecio. Please advise if you have any insight.
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The calc age for Ford pensions is 65. It drops by a defined percentage for each year you retire prior to that age. Besides the pension calculation, hitting 30 years gets you the early retirement supplement - payable to age 62. If you reach 30 years at 52 and retired that would be about 250k over 10 years .
Think of the d-mbest possible reason, thats why they did it. That's how they roll.
Anyone who retires prior to hitting the full retirement requirement and tries to collect a pension prior to the actuary calc. age...usually 60....receives a greatly reduced benefit. As the lump sum is a discounted sum of benefits received, the difference between 28 yr lump sum at 50 and 30 yrs at 52 can be up to 50 percent of the full retirement amount. I won't post the calculation here, but whoever is saying there isn't much difference in lump sum between 28 yrs and 30 yrs for someone under the age of 55, isn't calculating it correctly.
No, nobody is getting hosed out of 500k to 1200k by falling short of 30 years. You get your accumulated pension, regardless of being retirement eligible. It will not continue to grow, but one year does not make it jump that much. The company is walking out people who had already put in for retirement because they had their headcount objective and wanted to make sure it is met. For those who want to retire this year that didn't get let go, too bad.
I pulled my retirement paperwork after the 8000 rumors. Was planning on going sept 30 but it got moved up 30 days plus a big fat severance. I feel really bad for my coworkers who did not make it known they wanted to be picked.
Well it saves them money. I had less than 60 days left to 30 years and they are saving a good chunk of cash on my pension or lump sum, even with a severance payment, plus saving three months salary.
It's entirely possible that people who were already planning to retire were let go to save a spot for someone who didn't want to be let go.
Hello, the reason they are doing it is the numbers work for them
They intentionally clipped people with their retirement papers in who would reach 30 years in Sept/Oct/Nov/Dec. They needed to clip an equivalent number or more who had already reached 30 years and had their retirement papers in. Some are getting hosed out of 500k-1200k while others get a check for 75k. See how it works?
It’s because HR is completely incompetent. When have they ever done anything right. All past layoffs handled terribly. Career Navigator is a joke. But in the end, it stats at the top. Bozos leading Bozos. Maybe the new campus should include a circus ring to house all of the clowns.
In the case of SRD many who were let go immediately retired in order to lock their lump sum/ pension. Severance is entirely different and doesn’t impact pension. When you apply for retirement, you can revoke it. Maybe they wanted to make sure these folks were gone? Or, maybe they had a number to reach and they decided to reach it with people who were planning to leave anyway? Not much makes sense these days but know that the house always wins.