If proceeding with declining the relocation package, which ends up being the most beneficial course of action: Severance package or retirement?
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severance and then retire after the severance runs out.
I retired last year and the only benefit (and it’s a big one) was keeping RSRs. The company offers nothing else.
EXACTLY!
It's amusing to hear people talk about 'retirement' at Wells as though it means anything more than 'Person of a certain age quitting their job'.
I can't believe no one knows this. If you officially retire from WF you can get a free checking account. This is HR and CS telling your that they want you to remain in the family. @a2 is correct. Retirement has almost no benefits. Take the severance.
I heard on one of those AMA calls that they did in the beginning that if you initiate your retirement within the 60 days you can officially retire from Wells and keep your severance. They said to call HR right after displacement and change it to retirement if you want that option. But this was said over a year or so ago - so I would check on it now in case it changed.
Pros Retirement vs Lay-Off:
It's in the system as retirement
You can buy insurance (super expensive though) from WF until you reach 65.
Pros Lay-Off vs Retirement
You can get COBRA insurance for 18 months after severance ends (cheaper, I believe than the retiree insurance) But it ends at 18 months and you cannot then get on the WF retirement insurance. So after 18 months you're either on your own or doing the exchange or something until you get to 65
You can collect unemployment
I think the big decision is around healthcare. (At least for me it will be.) Do I choose the more expensive option that doesn't have an 18 month end date or do I choose the less expensive option and hope that in 18 months I can still get some kind of insurance before Medicare kicks on.
in case of retirement and severance, both allow you to keep your RSRs, they will continue to vest as they normally do.
If you can take the severance and let roll into retirement, take the severance and roll into retirement!
in my experience if you are eligible for retirement you are eligible for retirement and it makes no difference if you get a severance package. the biggest retiree benefit for me was rsrs continue to vest per the schedule -- this happened despite being severed. to check this out you have to go to the grant documents to confirm nothing has changed in the latest rsr rounds.
there is virtually no retiree health benefits in general but it may vary depending if a legacy bank employer provided and grandfathered
Why would you turn down free money?
Retirement has almost no benefits, so obviously severance.
Accept package AND retirement.