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Retirement and Severance

NeferlawNeferlaw 22 Posts
in HR & Employment Law Vote Up0Vote Down
We have 2 employees who we are considering asking to retire and giving them a retirement package. One is 84 and has been here for 37 years. The other is 68 and has been here 28 years. They are at vastly different salary levels - one is an attorney and the other a secretary. We don't know quite where to begin in forming a retirement package. Do any of you have any ideas or suggestions? Also, does anyone have a Release you can share with me? Do we need to give them 2 or 3 weeks to seek an attorney to review everything? I guess I should add that we are a non-profit without huge resources. Thanks for any help you guys can offer. I love this forum.

Beth Roper
[email]egroper@lsem.org[/email]
FX: (314) 534-1425
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Comments

  • 2 Comments sorted by Votes Date Added
  • John Vering MOJohn Vering MO 38 Posts
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    I suggest that you get advice from experienced employment counsel. You can not force someone to retire because of their age--regardless of what it is. The Older Workers Benefit Protection Act and EEOC regulations have a number of special requirements and even more burdens if you are offering the same kind of package to 2 employees with regard to the wording of the release--a small mistake on the release can result it in not being worth the paper it is written on.
    John Vering
    Missouri co-editor
    816-472-3114
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  • hrbankerhrbanker 243 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 10-30-03 AT 05:47PM (CST)[/font][p]There are a lot of ways you can put together a retirement package. I look at what makes the employee keep coming to work... if it's benefits, we continue those for a period of time. If it's salary, we offer enough to help them transition into social security. We only offer packages to those who have expressed an interest in retiring but can't seem to manage it financially.

    We had our retirement agreement drawn up by an attorney. We have to offer something that the employee would not normally be entitled to (extra pay, extra benefits, etc) and give them 21 days to seek legal counsel. There is a 7 day recision period once they sign the document.

    We have a few employees that draw social security and work also. They just love coming to work. What is your reason for picking these two?


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