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Mgmt ERO - What would you accept?
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<blockquote data-quote="pretzel_man" data-source="post: 492291" data-attributes="member: 927"><p>I can remember two occurrences of buyouts. One in the mid 90's and the second a couple of years ago.</p><p> </p><p>Technically, there is a difference between an early retirement and a voluntary seperation.</p><p> </p><p>While the logistics and target audience of each is different, they were basically the same.</p><p> </p><p>They are designed to reduce the amount of loss a management person has by leaving the company early. In general the losses are:</p><p>- Loss of MIP due to the 5 year payout</p><p>- Loss of Stock Options due to vesting</p><p>- Huge pension deduction due to leaving before 55</p><p> </p><p>They come up with a calculation to reduce the loss in these areas. It should be noted that they don't just give you the same pension that you would have had at 55. Its still reduced, but without the huge penalty.</p><p> </p><p>Then there is some seperation payout. Usually based on years of service. I think the last one was about 2 weeks pay for each year. I would have to check my paperwork to know for sure.</p><p> </p><p>So, when its added up, the actual incentive is relatively low. Its best for people that really wanted to start a new career and just needed the "boost" to do to so.</p><p> </p><p>Its really not the huge payoff people may think. Pretty much a fair "break even."</p><p> </p><p>P-Man</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 492291, member: 927"] I can remember two occurrences of buyouts. One in the mid 90's and the second a couple of years ago. Technically, there is a difference between an early retirement and a voluntary seperation. While the logistics and target audience of each is different, they were basically the same. They are designed to reduce the amount of loss a management person has by leaving the company early. In general the losses are: - Loss of MIP due to the 5 year payout - Loss of Stock Options due to vesting - Huge pension deduction due to leaving before 55 They come up with a calculation to reduce the loss in these areas. It should be noted that they don't just give you the same pension that you would have had at 55. Its still reduced, but without the huge penalty. Then there is some seperation payout. Usually based on years of service. I think the last one was about 2 weeks pay for each year. I would have to check my paperwork to know for sure. So, when its added up, the actual incentive is relatively low. Its best for people that really wanted to start a new career and just needed the "boost" to do to so. Its really not the huge payoff people may think. Pretty much a fair "break even." P-Man [/QUOTE]
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