Conference 7.286::digital

    Also getting the names of the people who did get the offer and did
    take it would help in case Personnel says such things dont exist.
    
    Whatever DEC does in the UK should be doable in other locations since
    I'm sure that Early Retirement is not ruled by Countries but instead
    by the Company and we are all 1 digital, n'est pas ?
    
    Lloyd

    re: .0
    
    I believe the original note asked if there was any truth to the rumor
    that an early retirement package was being considered (I can't
    remember exactly).  I don't recall there being any startling
    revelations in the note (and I'm reasonably certain that I would have
    remembered any new thing of substance).
    
    -- Russ
    
    PS/ Perhaps some diligent moderator could move this chain to the note
    in question?

	My memory could be fading, but I thought it asked if their was going
	to be an early retirement package.........I thought I'd let you know 
	that we were offered one, and some people took it up. However I think
	it was only on offer until 1st July..........so a precedent has been
	set that it could be possible to follow.

	
	Heather

    I also have heard that an early retirement package would be part
    of TSF04, but I wouldn't really expect to see it.
    
    Two years ago when Jack Smith and his entourage visited Spit Brook
    for an all-site meeting that question came up.  Jack openly
    acknowledged that an early retirement program had been considered,
    but then dropped because there were so few people over 50 who would
    qualify.
    
    Also, anyone who has tried it up to now...Wang...IBM.....HP....has
    been surprised at the number of people who have taken the option,
    quite often people they didn't want to lose.  Don't bet on it, at
    least for the U.S.

    re .3
    
    As one of the UK parties involved, I can assure you that we did not
    receive an "Early Retirement Package", but a Voluntary Redundancy
    Package.
    
    An "early retirement package" would have meant bringing forward payment
    of _full_ pension by a number of years.  Digital UK steadfastly refuses
    to do this on the grounds that it would be too expensive. (BTW I
    believe that it _was_ done in Puerto Rico; somebody might like to
    confirm or deny that rumour).
    
    Takers of the Voluntary Redundancy over the age of 50 had the option,
    as do _all_ members of the UK pension scheme, to take immediate payment
    of a severely reduced pension (a reduction of 4% for each year that you
    take it early).  Efficient personal tax planning under UK tax laws
    meant that many people took an immediate (severely reduced) pension, so
    that they could also take advantage of the tax-free sum that would also
    emanate from the Pension Fund.
    
    "Early Retirement" it ain't !; Voluntary Redundancy it is !
    
    
    John
    (now back as a contractor)

    
>    "Early Retirement" it ain't !; Voluntary Redundancy it is !
 
	If it was NOT early retirement, then you could leave your current
	pension accruals with the Digital pension scheme, or transfer
	to another, either with a new company, or with a Personal Pension
	Plan.
	You would still have the redundancy money.

	If you have taken the early retirement AS WELL AS separate 
	compensation (nothing to do with the Digital early retirement
	provisions), then you have an early retirement package.

	I wish this package would be available to me once I reach 50, however
	I have been told the option has already been withdrawn.

	Heather

    As I have noted somewhere else in this conference, Puerto Rico has had three
    downsizings. The last two were combined with early retirement programs. 
    The main factor which differentiates us from the rest of the company is
    our low turnover.  Early retirement  was needed to encourage mature
    employees to leave.  "The Package" was not enough to kindle enthusiasm
    in the depressed job market here.
    
    Dick

Gee I hope that is true, it would set a precedent and might be beneficial
to those seeking some sort of a legal recourse.

Lloyd

    re .6 (Heather)
    
    You are right, we could have left our then current pension accruals 
    with the Digital pension scheme, or transfer to another, either 
    with a new company, or with a personal pension scheme.  
    
    There was no Digital pressure to take the immediate pension. However
    after a lot of independent financial tax advice, some of us _did_ 
    decide to repay a _lot_ of Additional Voluntary Contribution money 
    into the pension fund (mainly emanating from redundancy payment) and 
    then take the immediate pension, reduced by the actuarial amounts.  
    A financially smart, and fully legal, way of lessening the tax burden.
    
    This is to do with "tax planning" and does not represent "early
    retirement".  In a similar situation, IBM offered "early retirement"
    terms to over-50s by bringing forward by 5 years the full pension
    entitlement.
    
    Be assured, Digital did _not_ offer "Early Retirement" in the UK,
    despite very heavy lobbying from very interested (and pretty senior)
    interested parties.
    
    Cheers
    
    John
    
    
    
    

>       <<< Note 1576.8 by AKOCOA::OSTIGUY "Digital Internal Use Only" >>>
>        -< I hope it's true. Can someone please verify that from P.R. >-
    
    What more do you want? Dick, who wrote .7 *is* in P.R.
    
    			Alfred

>    There was no Digital pressure to take the immediate pension. However
>    after a lot of independent financial tax advice, some of us _did_ 
>    decide to repay a _lot_ of Additional Voluntary Contribution money 
>    into the pension fund (mainly emanating from redundancy payment) and 
>    then take the immediate pension, reduced by the actuarial amounts.  
>    A financially smart, and fully legal, way of lessening the tax burden.
>    
>    This is to do with "tax planning" and does not represent "early
>    retirement". 

	Well, I see it as retirement planning, and early retirement. 

	Anyone can retire early, Digital gave you the means to retire early, 
	and also boost the retirement pension.
    
 	I hope it's re-instated when I come to retire - you must have thought
	it was a good deal too!   
    
    	Heather

    re -1
     Heather,
    
    Spending time arguing semantics is profitable only for lawyers and
    academics....let's agree we assign different meanings to the phrase 
    "Early Retirement".
    
    The pension side _should_ be available when you are eligible to
    take an early pension (ie 50) as it is part of the standard Digital UK
    pension scheme, open to all.  
    
    I echo your hope that a similar, or better, separation package would 
    be available to you, should you be faced with forced redundancy or 
    be given the opportunity of voluntary separation.
    
    John

>    The pension side _should_ be available when you are eligible to
>    take an early pension (ie 50) as it is part of the standard Digital UK
>    pension scheme, open to all.  
 
	Normally you can only put 15% of your income that year into an AVC,
	to increase a pension, they must have done some deal for you to bump 
	up your pension by putting in the lump sum.

	I'm investing money now, so I can get a lump sum on retirement, 
	(separately from my pension) and I have specifically been told that I 
	can only put 15% of my taxable income in the last year into this.
	I CAN't use the majority of the lump sum to boost my pension.

	If you have found a way (other than the special scheme Digital put 
	together) I would really like to know.

	Heather

    
    You can backhaul -- ie you have a 6 (I think) year tax window. If you have
    not put the maximum in for each year of the past 6, you can do that at
    any time as a lump sum, or stage payments-- hence the attraction of 
    pumping handshake into AVC.
    
    Minimises tax hit hugely -- not to mention should give you a 14-15%
    return minimum p.a on top -- real return nearer 35% when u allow for
    tax -- & a better pension to boot.
    
    Info from my little lad -- who's a Manager/pension advisor in a local 
    building society.
    
    Colin

    re last 2
    
    Colin's info is correct......also as an over-50 yr-old the tax people
    allow you to invest large sums to a limit (I forget the limit)
    tax-free.
    
    No special deals were done for the over-50s on pensions (and I speak
    from the heart !)
    
    The overall package was the the current voluntary redundancy package
    and the standard pension plan.
    
    John
    

	Thanks folks, I knew that you could put higher percentages in when you
	got older if you were in a private pension scheme, I didn't realise 
	this was available for Company pension schemes or AVC'S (and FSAVC's) 
	linked with company pensions, or lump-sum stuff.

	I'm already putting the extra 3% into Divitals AVC, and lump sums into
	FSAVC's, but there is nothing mentioned about this in any of the
	literature, or from questions I've asked personally or via mail.

	If this is explained in the "whatever early/volunary retirement" 
	package then it maybe worth having a copy of it.


	Heather

    As always, the rumors are belching up again about this.
    
    The difference?  Coming from better/higher sources.
    
    I say FACT this time...supposedly to be announced as
    soon as tommorrow. 
    
    Mark