Brave New World
26 replies (most recent on top)
General Motors froze their salary pension liabilities back in 2007.
GM does not have pensions.
I believe in 2017 Ford did offer UP TO a year salary for people who qualified with the time. You can retire taking the monthly pension payment, and revisit at retirement age, and if the lump sum didn't take a huge hit, covert to lump sum. You can read about it in the benefits guide.
Does GM offer lump sum pension option, and do they offer the health care HRA spending stipends (500 employee 500 spouse), for those 55 years of age with 10 years or more or those with 30: years total?
Remember, that 12 months would get tax withholding at the federal supplemental rate. That means with state tax, and SSI/Medicare withholding, the total withheld would be 33.8%. So your take home would be 66.2%.
Now when you did your taxes the next year you'd get a chunk of that back depending on what bracket you fell into. But just something to remember.
I would have signed and walked out the door before my boss even finished explaining it.
I'd rather have 2 years added to my service, so I can top off my pension at 30 years. I'd leave in a heartbeat - no need for a year's pay.
Remember these buyouts need to be approved first.
GM and Ford will offer these buyouts/packages to put fear in everyone that layoffs are on the horizon. They already know who they want gone. So, if they want you gone they will approve your buyout. However, if for whatever reason they don’t want you to leave (ex; low salary) they will not approve your offer to accept the buyout.
Ford realized this when they offered buyouts in 2017/2018 and most who accepted were FCGs. Now, they will review and approve whoever they deem they want gone. Couple this with PIPs and you can see how they decide who stays and goes.
Dream on... 12 months salary, LOL! How many years do you have 1, 5, 10? Dream on, not going to happen.
I would be very tempted. Could take a couple month break and find another job easily in that time period.
I think the offer package will be equal or better than of G.M. CEO has ego, not to be in 2nd place after GM. CEO said Ford is 25% inefficient compared to others, if Ford does not reduce more than competitors, how can it improve beyond 25% ?
If offered a year's worth of salary I'd consider it tbh, though being in software I don't expect to be offered one. Anything less than 8 months I'd rather just work until laid off.
Seems like for those who are pension eligible, they would have already elected to retire by Dec. 1 to avoid the loss in lump sum, so I doubt there would be that many takers now. However, if they opt for monthly pension, that wouldn't matter, so maybe a few would take it now (but I'm guessing not that many).
My guess is Ford HR won't do this, if they don't expect high take rate.
12 months would be incredibly tempting. Not gonna lie.
@anf - there are many people who will choose the monthly retirement plan vs the $. That very well could be why prior post didn’t leave. Because they didn’t have to and weren’t ready to retire.
Just because people have 30 years, they still could be 52 hired right out of college. Life happens and people still need to work for many different reasons.
@ngc+1lzDYb5o Why didn’t you leave last November?
I have 30+ years and would take 12 months' pay and COBRA if offered.
Collect it and clear out!!
Grab it and go!!
Take it and get the heck out.
I hope some mo--n won’t offer a similar package as in August 2021 like below
“ Buyouts start at one month of severance and benefits for Ford employees for five years or less. The largest incentives apply to employees of over 20 years: in addition to six months of severance and benefits, they also receive reemployment assistance for the same amount of time.”
But again you never know.
Absolutely!
Ford needs to finally do the right thing for their salary employees. It’s way overdue.
Offer the same voluntary package to salary like GM did.
Up to 12 months severance and a year of cobra health insurance.
In a heartbeat. But it is not going to happen.
Take the Money and Run
This is not going to happen at Ford. People will have a choice either PIP now or leave with 6 months pay. We all know what happens if you take the PIP: you will be fired due to poor performance in 30 days.