There are more and more rumors that involuntary cuts will follow. I was a little surprised when I heard those rumors, but nothing should surprise me here anymore.
I would love to get the package and leave. That would suit me the best.
My question is who will be the target group? Does anyone have more info?
Good news! The head count cuts will come naturally now. 2% merit against 7% inflation. AICP of 54%. The leaders of this company racing cars and pushing liberal agenda items (climate change, DEI). I think you will see a mass exodus that will make head count reductions via layoff unnecessary.
Of course, those that stay will be unmotivated, overpaid, pension eligible. And they will get worse and worse as the people that do the real work leave in droves.
Good times!
Yes, pension is reduced for age. That is why it may be worthwhile to stay on the job. But if you are leaving, take the lump sum immediately, especially if the lump is based on a low interest rate year. You can get better growth with the money, especially if you aren't taking the money as income yet.
@3cqd
I ran some number and right now my pension increases about $6K each year I work. If I defer starting to collect my pension by 1 year (i.e. retire at the end of this year, but defer start of pension until 1/1/24) then my pension increases by $2k (versus what I would collect if I started it on 1/1/23). That means I need to live about 30-35 years after retiring to make deferring worth it. I'm guessing if you defer it longer (like @3ikh) the payback time might be smaller, but as always YMMV.
Pension is reduced for age. Read the SPD it and use the pension tool. You will have your answer.
Why on earth would you wait to collect your pension until age 62 if you left at 55? You need to take a closer look.
I assume you mean pension. If so, no you can not lose your pension. You can retire immediately. Keep in mind that your pension may be reduced for age if you are under age 65. All of the permutations are listed in the summary plan description which can be downloaded from the Ford benefits site. At least as of now, you can get severance and then collect pension. I believe this is outlined in the SIRP which you can find on Life@Ford easily enough.
I will be 55 with over 15 years of service in May and am very much considering bailing then. I won't collect my pension until 62. At least in my case, there is no difference between collecting at 62 and 65 and only a very modest reduction at 61. I would run the estimates on the pension tool on the Ford benefits site for yourself if you haven't done so already. The only thing giving me pause is healthcare. I've done some estimating on healthcare.gov, it is a bit frightening but I'm in good financial shape and I believe I'm good even paying on my own. Inflation is the wild card. If I do bail or get forced out, I may do some part time work for some income. Maybe you will see me at Home Depot stocking shelves one day. If I get caught up in the involuntary before I hit 55, then things change drastically for the worse.
3yag: If you are let go due to a head count reduction initiative, you would be offered severance under SIRP in exchange for signing an agreement not to sue. This would happen regardless of whether you are eligible for retirement. If you are 'SIRP'd', you can apply for retirement at that time or defer it until later, just like somebody who quits. Applying for retirement would not prevent you from receiving your SIRP severance.
Anyone who is terminated for cause, such as those who are not compliant are not eligible for SIRP under the current policy. However, it is possible Ford could chose to offer severance similar or equal to what is offered under SIRP in exchange for an agreement not to sue. Such an offering would be at Ford's discretion.
I believe this was discussed in another thread some time ago, but if you are involuntarily cut (not because of VAX status) and are retirement age/years of service eligible, do you get both (severance and retirement) or do you lose your retirement or maybe just elect to retire immediately and get no severance?
Hierarchy over knowledge. That was proven when Jim was chosen over Joe. The problem started with Hackett.............and has been doubled down on ever since.
Based upon experience, they will target those making the most money. After all, they want to reduce costs and avoid retirement payments. Just be ready to get canned. I would be looking for a new job if I was still working there.
Let’s put it this way; if you have to ask who/what are the target groups, you likely are already in one of the groups targeted for reducing. It’s too late to start kissing up & playing office politics.
Best bet I’d the dollar s George Kastansa and do the opposite of what you should do; it had worked for some in the past.
SME's and top achievers will be first target. They have no place within Ford Motor Co for 2022 and going forward.
They are expensive, plus technical knowledge is not needed any longer. The future is electrified, software, and data. Which is easily obtained outside of the USA and for much more competitive costs.
Who is the target group? Can you be serious every OFWM knows that.