Adp has offered an early retirement package to associates 55+ with 10 years vested however some folks were also laid off. The associates who were laid off have been told the early retirement money will be used to fund their own severance. Robbing from Peter to pay Paul!
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There is no severance per se. The offer was to give employees who qualify three weeks for every year of service up to a particular amount. These funds will be added to the pension and the retired employee can determine how to take the distribution, either as a lump sum or payments for the rest of their lives. Since there is no severance, there is no unemployment insurance and no employment assistance to help find a new job as there would be with a layoff. The qualifying employees have not been given their termination dates as of May 9th and have no clue HOW or WHEN they will be informed.
Aside from the retirement plan, ADP is losing an enormous amount of talent and Carlos will benefit. It is a very sad time for ADP and I do not believe they will ever be able to recover from this huge blunder. I wish everyone who stays the best of luck as well as the ones who have chosen to go. I think leaving is the correct answer since ADP does not care about their employees nor their clients.
I feel sorry for the people who think the ER is a good deal.....wake up. Read the posts here on this site. Over 55, experienced workers will find it very hard if not impossible to find a job and especially anything close to the salary they are making as someone posted. Employers think they are 'over qualified' and will leave as soon as they find something more in line with what they were making. Nobody will hire you, not even retail companies. Please stop fooling yourself......ADP has ruined many lives and families with this massive company wide turnover of its workforce.......nothing is a good deal about it.
One factor anyone forgot to mention is, for people over the age of 55 it’s not easy to find another job that pays a decent wage. Employers would rather hire younger people for a lower wage just like ADP is doing.
You can get another job? Good luck getting anything close to the salary you are getting now. Plenty of retail jobs at low wage, no benefits.....which s---s. The deal favors ADP , not the ex- employee. They get screwed.
Your still out of a job. There is no severance to go along with the offer. You'd better get another job quick.
From what I understand, part of the early retirement pkg is the company is putting in 3 weeks for every year of service so since the typical severance is one week for every year worked it's actually a great deal. A lot of people are basically doubling their pensions and getting nearly a year or two of extra payments plus benefits. It's not ideal but if you're 55 and worked at the company for 30 years it's pretty good plus you can go get another job and collect your pension on top of any new salary.
ADP is a doom and gloom company...
Interesting Concept, but too doom and gloom...
Contact HR. They will clearly explain the details
If I am understanding the OP correctly, the retirement package is being offered to employees who are 55 years old or older and have at least 10 years of tenure with ADP. The "retirement" for these people will happen after June 1. However, if ADP decides to lay these people off before June 1, even if these employees had opted for the retirement package, they can go ahead and do so. The severance pay will be up to 6 months of continued paychecks (minus benefits) and will be taken out of the retirement package money (less put into 401K), so in effect part of the pension money will be used to provide the severance pay.
OP, please verify if my understanding on this is correct.
If this is the case, it is probably designed to have the "retirement victim" working real hard until the day that they are retired out of ADP. Otherwise, if an eligible employee selects this retirement option, there is no incentive for the employee to work hard but to slack off. There will be no more merit increases and the employee will be leaving the company in a few months. So why work hard? The threat of being laid off and using your own retirement money to fund your severance will capture the attention of such an employee and will help insure that the employee works real hard until they leave ADP.
Can you clarify? I have opted for the retirement package, but I thought that the separation was from June 1 to March 2018. Are you saying that basically the folks laid off recently received the full package? I hope those affected at least received the full package....