Severance offer
Jackson
18 Posts
Our CEO would like to offer a severance package to one or two employees on our executive staff as an inducement to take early retirement. Both employees are in their late 50s. He is planning a reorganization and would like to replace them because the requirements of the new positions exceed their qualifications. One has expressed his desire to retire within two years. The other has not mentioned retiring.
Our organization sets age 55 as early retirement. We have both a 401(k) and Pension Plan. Age to receive pension benefits is 65. As a severance, he would like to offer one year's salary plus benefits paid for one year. (Medical, etc.) (Or two years at half salary per year plus fully-paid benefits). If they choose not to accept the severance, they would be transferred to other positions in the reorganization and would most likely retain their current salaries, but have less power in the organization.
Has anyone faced a similar situation? We are a non-union, non-profit credit union located in Tennessee.
Any advice or guidance would be appreciated.
Our organization sets age 55 as early retirement. We have both a 401(k) and Pension Plan. Age to receive pension benefits is 65. As a severance, he would like to offer one year's salary plus benefits paid for one year. (Medical, etc.) (Or two years at half salary per year plus fully-paid benefits). If they choose not to accept the severance, they would be transferred to other positions in the reorganization and would most likely retain their current salaries, but have less power in the organization.
Has anyone faced a similar situation? We are a non-union, non-profit credit union located in Tennessee.
Any advice or guidance would be appreciated.
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