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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1634.0. "Lost 9 years of pension plan?" by FLYWAY::ZAHNDR () Tue Oct 15 1991 06:40

    Another topic - I would like to hear some advise !
    
    I worked for DEC 9 years in the USA, and had the chance to work in
    Switzerland. Personel strongly suggested to take this opportunity. I came 
    to Switzerland 18 months ago and was layed off with a three month time 
    frame to find a job, last Monday. I am not 55 years old yet to be taking 
    the early retirement. I found out that my pension plan from the USA did 
    not fallow me to Switzerland, therefore I am only eligible for 18 months 
    of pension. With other words, I lost 9 years of work by DEC.
    I am now in a country 3times more expensive, not much of a chance to
    get a job here in any company, due to the fact that I have no
    experience in a Swiss company. I lived 30 years in the States. I do
    however have both passports. 
    Did I realy come to Switzerland to be layed off?????? I know they have
    too many people here too. Who gives me the chance to come back?
    I worked as an Eng. Ops. Analyast II in the USA, here as a User Support
    for various applications.
    
    What do I do? Who will give me a job in the States? Do I see a lawyer?
    
    Have a nice day - Ruth
    	
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1634.1Check your data first !BEAGLE::BREICHNERTue Oct 15 1991 10:0137
    Ruth,
    
    I am afraid that NOTES won't fix your problem, HRO (or "Personnel")
    could, but there aren't many who "note"..
    
    You'll have to start by analyzing your situation:
    1- How did you get to Switzerland "upon Personnel's recommendation"
       as Intl relocatee ?
       In this case, you can get only "fired" back home.
    
    2- On your own ?
       (Did you resign in the US and became a new hire in Switzerland ?)
    
    You should know such "trivial" info, if not, start checking
    your personnel file for dates (e.g DEC hire date)
    
    In case that you are a  DEC hire (starting 18 months ago in
    Switzerland) all SWISS laws will apply to your case. 
    Depending also if you are contractor, permananent employee, etc.)
    
    In any case, before doing anything else, I'd start with my HRO
    rep to sort this out. However be prepared with more pertinent
    info than is contained in your base-note.
    
    If this doesn't help, you may also use Open Door Policy to get
    to the next level (Geneva ?) of management or HRO.
    
    Many Euro countries have "personnel delegates" or whatever they
    are called which as elected representatives of personnel
    visavis management might be able to help as well.
    
    There must be lot's of things you could still do before
    going to a lawyer, (in my humble opinion).
    /fred
    
    
                    
1634.2Time for a creative solution...BULEAN::ROBERTSKen RobertsTue Oct 15 1991 10:4652
	The circumstances of your previous relocation have an effect upon
	what happens to you.  If you relocated to Switzerland on a so-called
	Temporary International Assignment, then Digital is committed to
	bringing you "home" (which in this case would be the US) even
	if you are terminated (and there is precedent for this).  Depending
	upon the countries involved, there would most likely be some sort
	of provision for retirement benefits as well, but this information
	would have been included in your relocation contract.

	From your note, it sounds as if you went to Switzerland as a
	"local hire", in which case you paid your own relocation costs
	and your benefits are no greater or less than your present colleagues.
	Also Digital has no special obligations to you (other than national
	labor laws) once you are terminated.

	If pension is really a primary concern, then it is time to make 
	the decision as to which system you really want to belong; since
	the US and Switzerland are not part of the EEC, one cannot simul-
	taneously accrue retirement benefits in both systems.  (This hopefully
	would have been one of the factors in your decision to move to 
	Switzerland.)  It is more likely that your career and income are 
	the primary concerns and pension is secondary, but in either country
	the high tech job market is *tough* right now.

	Not knowing the circumstances of your family life or other commitments,
	it is difficult to give advice, but for a moment I'll put myself
	in your situation and ask myself the question "What would I do?"
	The answer would be to find a way to survive the difficult times
	and stay with Digital somewhere.  Since you have been with Digital
	for over 10 years, you must have plenty of contacts.  You also have
	three monthes to look around so make good use of that time.
	Relocation contracts are VERY difficult to find in Digital these
	days (particularly international relocation), so contact managers 
	in Switzerland and the US who appreciate the quality of your work
	and let them know that, if the job requires, you would be willing 
	to relocate yourself at your own expense.  (This assumes that you 
	still have a valid green card for work in the US.)

	In summary, don't let yourself get closed out of an opportunity to
	continue your Digital career because a potential manager gets scared
	off by the cost of relocation.  Let them know up front that, if need
	be, you will relocate yourself; if you have chosen to do it before, 
	then there is reason to believe that you will consider this to be
	a viable option.  This is expensive advice, but given the uncertainty
	of the current high tech job market, one could consider the costs
	an investment in one's career.

	Best of luck!

		- ken

P.S.	Now for some money saving advice: stay away from lawyers.
1634.3Try another US company or contact the embassyGRANPA::TTAYLORfortress around my heartTue Oct 15 1991 11:1010
    Why don't you cntact the embassy wherever you are?  The US hires a lot
    of citizens abroad for embassy jobs, also if there is a military base
    nearby, that might be an option.
    
    Good luck.  By the way, Data General has many offices in Switzerland. 
    I know because I worked over there before.  Unless they have downsized
    significantly, there are offices in Lausanne, Zurich and Bern.  Those
    are the places I worked ...
    
    Tammi
1634.4Thanks for now!FLYWAY::ZAHNDRTue Oct 15 1991 11:336
    Thank you all for the advise. I will do some more research. When I came
    here in April 1990, I was told by Personnel USA, that the pension funds
    would be transferred, so that DEC Swiss would not have to buy me into a 
    Swiss pension fund. I have double citizenship. I know that I do want to
    stay away from lawyers. Until later - 
    Ruth
1634.5TOMK::KRUPINSKIRepeal the 16th Amendment!Tue Oct 15 1991 13:0811
	Most US pension plans have a concept called "vesting" which means
	that after a certain period of service, you are considered "vested".
	This means that even if you leave the company, when you retire,
	you still receive benefits based on the time you were employed.
	You might want to check on your "vesting". As of a couple years
	ago, DEC pensions were vested after 5 years of service, which to me
	says that you are vested and cannot lose the 9 years you spent
	in the US. I'd check into that aspect.


						Tom_K
1634.6COOKIE::LENNARDRush Limbaugh, I Luv Ya GuyTue Oct 15 1991 14:2611
    re -1 ...... I was going to say that also.  You HAVE NOT lost your
    U.S. pension entitlements.  You are 100% vested, and when you are
    55 (or later) you may begin drawing a pension based on your years
    of service (9) and average salary at that time.  It won't be much,
    but you definitely haven't lost it.
    
    It sounds to me like you took a chance and went to work directly for
    the Swiss subsidiary.  You took a chance and lost.  So try France,
    Germany, and others.  Good Luck!!
    
    
1634.7LEVERS::PANDYAWed Oct 16 1991 14:0921
    
    Ruth,
    
    The policy on vesting for pension used to be 10 yrs of service.
    However, not long ago (probably a year or so ago) DEC changed this
    policy to 5 yrs of service. You need to find out when this policy
    change went into effect. If it did after you left (depending on whether
    you were "transferred" or "laid-off") you may be affected by that
    timing and policy change. If the policy changed before you left US,
    you are 100% vested and can receive pension upon retirement. However,
    if you are now no longer (are are no longer going to be) with DEC,
    you should receive a lumpsum pension proceed to be rolled-over into
    an IRA or used for personal needs (you may be taxed in that case).
    
    I suggest you talk this over thoroughly with personnel and your
    tax adviser. 
    
    You may be OK (hope!) and there may not be a reason to panic!
    
    Good Luck...let us know what you find out.
    -Atul
1634.810 yrs = 9 1/2 yrs. ??SOLVIT::DESMARAISThu Oct 17 1991 09:104
    I left a previous employer with over 9 1/2 years and it was right
    after retirement reforms in the US. At that time if you talked
    to the right people you would find out that 9 years plus 1000 hours
    would qualify for 10 years of service.. I would check into it..
1634.9All is not lost....COOKIE::LENNARDRush Limbaugh, I Luv Ya GuyThu Oct 17 1991 13:592
    ...but even under the old rules, 9 years of service would entitle
    her to 90% of whatever pension she is/was entitled to.
1634.1055 or 65ELMAGO::JPALLONEThu Oct 17 1991 18:198
    I think the way early retirement works is, if you go at 55 years
    of age, you get 40% of what your retirement would be if you were
    65, for example, if your retirement benefit was $1000.00 at age
    65, then you would get $400.00 a month at 55, it grows 6% a year
    till 65, so if you wait till 60, you'd get 70%, or 700.00 a mo.
     I'm elgible to another retirement(EG&G) and I certainly plan on
    taking it at 55, I feel the money I make in the 10 years will be
    more than if I wait and draw 100% at 65.
1634.11COOKIE::LENNARDRush Limbaugh, I Luv Ya GuyThu Oct 17 1991 19:267
    ...well, almost.  You get 50% at 55.  The problem is that if you
    continue to work until 65, you have ten more years of service
    and hopefully some periodic raises.
    
    The 50% thing only works if you were to leave the company at say
    50, therefore accruing no more service time or salary, and then
    apply at age 55.
1634.12Confusion over benefitsSAHQ::HUNTERFri Oct 18 1991 17:392
    I am glad the company spends so much time and money preparing our
    "benefits book".  Obviously we don't read them or they are useless....
1634.13PLEASE KEEP US IN THE LOOPHSOMAI::BUSTAMANTEThu Oct 31 1991 19:104
    Ruth:
    
    What was the outcome, we'd like to know. Also we would like to know how
    you transferred to DEC Switzerland.