If you are retirement eligible and also being severed in 2027:
Are you considering retiring before end of 2026 to retain the 2026 annuitant benefits (and thereby forego severance package)? Or do you think it’s better to get the severance package and forego the 2026 (current) annuitant benefits package. Benefit package available for annuitants if you retire in 2027 or later is substantially worse than current annuitant benefits. Disappointed the company is making us choose!
3 replies (most recent on top)
If your spouse also has retirement benefits then this is a no brainer
It’s very hard to do the math accurately because it’s impossible to know what you will need in the future. There’s a reason the company wants to move people off the current benefits plan, as it will cost them a lot in the future, as people live longer. For example, if you end up needing medication not covered in the new plan, it could cost a fortune.
Also, have not heard of anyone being offered 24 months severance, it appears to be capped at 18 months, at least for MPT.
The 18 months severance is likely cheaper for the company than keeping an annuitant on the existing benefits plans for 30+ years.
Do the math.
Let's say you worked your whole career here and are offered 24 months of severance. That will be several hundred thousand dollars, even after tax. Will the poorer benefits, over your lifetime, cost you more than the value of your severance (which if invested will also be earning you money)? I doubt it.