Conference 7.286::digital

    Just a rumor and probably not going to come true. IMHO the last SERP
    was it. No more.

    I heard (only a rumor at this time) that there will be another early
    retirement offering.  The age would be lowered to 48 years old and older.
    It will take place sometime in Q3.

    About a month ago I checked with personnel on this one.  It was pointed
    out that in order to do this, several months of advance planning was
    required, including filing certain exception documents with the
    customer.  There was nothing going on at the time, and this person
    claimed that she would be involved if there were.
    
    So, it is unlikely that this will happen.  Given the current climate
    and the rumors that the next package will be considerably less, it is
    hard to imagine that a new, attractive package in isn the offing.

    >required, including filing certain exception documents with the
    >customer.  
    
    Customer?  I know we are all trying to "think Customer" but in that
    sentence, it didn't make sense!
    
    

    RE:.4
    Your're right. I meant to say government, rather than customer.  That
    would indeed be taking "Think customer" to new heights.
    

    Has anyone heard that they will be offering a new retirement package? 
    The rumors are flying around here.
    
    Thanks, Jackie
    

    Yes, I hear it all the time in other notes in this conference.

    
    
    Its buzzing here that there will be a "buyout" instead of early
    retirement.  There's a formula and everything! ! ! ! 
    
    
    Jackie

	re: -1, Please define "buyout" vs say TFSO?

thanks,

joe

	... which lend it all SORTS of credibility, right? :>)

	I don't remember the exact formula, but, based on years of service,
age less than 55, and a couple of multipliers, you come up with a number
that is multiplied by your annual salary.

	The way I heard it, this is your "buyout", retirement lump sum,
what ever you want to call it. And it also appears that if you aren't 55,
you have to role it into an IRA or similar vehicle or you incur about every
penalty known to God, man, and the IRS! This should keep a lot of lower
middle-agers from bailing, unless they've got a job lined up for the next
Monday!

	After disbursment, I don't what rules about medical and other
insurance apply, but my guess is that Digital won't do anything that won't
cut the weekly costs immediately.

    
    The way we heard it, the "buyout" buys all of your interest in Digital,
    pension, etc.
    
    Here's the formula we heard:
    
    Salary x .015 = X
    
    X x 9 = Y
    
    55 - your age + yrs of service = Z
    
    Y x Z = $Buyout.
    
    Astronomical!....I think!
    
    Jackie
    

Re: .12

Can that be right? If you do the calcs you get less $ the older you are.

Lee

    I just used the formula, and I came up with a few thousand over a years
    salary.  That is not much in my books..  I have a fully vested
    retirement, why give it up for less than $100K?
    
    It is as Stupid as the SERP I checked out last time.
    
    It is okay if you are able to go straight to another job, or have
    a side business.
    
    Dave

        hi,

    what is the earliest age a DECeee can retire?

    is it 59 as for the federal government, or can a DECeee retire
    before that age but get less retirement money?

    thanks,
    \nasser
    who_would_like_to_retire_some_day

The formula cannot be right.

Assume age = 20 and years of service = 1.  The formula yields Z = 36.
For age = 30 and years of service = 11, formula also yields Z = 36.
And for age = 40 and years of service = 21, formula still yields Z = 36.

I can't believe that all three of these (hypothetical) people would get
the same multiplicative factor Z in their buyout.  The first person is
young and has only been contributing for one year.  The last person has
been contributing for 21 years and gets the same benefit (!)

    Salary x .015 = X
    
    X x 9 = Y
    
    55 - your age + yrs of service = Z
    
    Y x Z = $Buyout.
    
-steve-

    It's really sad when we have to discuss the rumor in this file
    and not hear anything from senior management concerning its
    validity/invalidity.
    

Re: .17

Like the SLT has nothing better to do than rumor control for everything you
see in this notesfile.

This particular one is so stupid it doesn't even deserve the disk space.

On behalf of the SLT, I'll deny this rumor for you.  A package with this 
formula does not exist.  Period.  Never will.

You have my word on it.

Bob

   This calculation for me is about $250K.  Sounds good to me.

    Yeah, I'll take the $90K and run with it!!
    
    -sandy
    

    
    This sounds a little fishy to me.  First of all the calculation
    should result in 
    
    Salary X .015 X 9 which results in a simple
    
    Salary X .135 = Y
    
    This simplifies the math but then if you rearrange the second portion
    of the equation it makes more sense.
    
    your age - 55 + yrs of service = Z
    
    Y x Z = $Buyout.
    
>    Astronomical!....I think!
    
    It would be astronomical under the original conditions.
    
    But if you calculate the buyout for 3 persons each with a salary of
    $50K you'll get the following:
    
    Person A is 30 years of age with 10 years of service
    Person B is 40 years of age with 20 years of service
    Person C is 50 years of age with 30 years of service
    
    you'll get buyout values of
    Person A;	$6750 x (30 - 55 + 10) = -$101,250	(gee, you'd pay!)
    Person B;	$6750 x (40 - 55 + 20) =   $33,750	(not very good)
    Person C;	$6750 x (50 - 55 + 30) =  $168,750	(only sounds good)
    
    Hope this isn't too much rain!
    
    cw

    
    	Am I to assume that by "buy-out: this means ALL Digital
    	investment in me?  That would include any pension $$
    	wouldn't it?  Under that assumption I don't think it
    	would be such a good deal.  Probably not even worth
    	asking if I am right in believing that this whole idea
    	is total hogwash!
    				8^)

    I think the Random Rumor Generator must be working overtime to 
    come up with this silly nonsense.

   Re: .22
   
   Not only pension, but probably health care too.

re: 22

But if you think you wont be working for DEC this year or in the next
couple of years you have to look at it differently. Once you leave, your
pension benefits no longer increase. You actually start losing benefits 
because of inflation. If your 45, and your benefit is $100 when your 65,  
the money wont buy near as much in 20 years. If you get a buyout, you
probably will need to get another job, but you can invest the lump sum
and be a lot better off when you retire.

- John 

    Hey,if it weren't for rumors (silly and otherwise) what good would this
    notesfile be,huh? Whadya think anyway,we all read these notes just to
    read about the latest on "matrix management" and all that rot about MCI
    calling cards? Gimme a break!
    
    Ken

    RE: .26
    
    Ken:
    
    RIGHT ON!
    
    
    j

    Re: .26
    
    You're right, of course, Ken. I would never be so foolish as to
    suggest otherwise. These rumors are much more intertaining, and
    often more enlightening, than the management-speak mumbo-jumbo
    that sounds like an old "Firesign Theatre" album we hear so much
    these days.

    answer to .9  The "Buy Out" was the first form of TFSO.  The company
    asked you do you if wanted a package or do you want to stay and look for a
    job?  I believe those days are gone.  It's strictly TFSO - almost no
    choice you are gone.  Back in 1990 when my husband took the "Buy Out"
    his choice was stay and look full time for a new job or take 88 weeks pay.
    (That was his particular package after 16 years at DEC).

	Word going around ALF, and based on some contact with Mass. people
is thst Digital has registered a "retirement plan action" with the State of
MA.  Apparently this will give them the option to act if desired.

         NOTHING TO DO WITH THE SUBJECT OF THE NOTE!!!!
         
         Jeez, there's a blast from the past.  The Firesign Theatre!
         
         I used to import those guys albums cos no-one in England 
         seemed to stock them.  Many a weird evening was spent.
         
         Are they still cutting records?
         
         Ian

    Re: .31- Firesign Theatre:
    
    	Yes, they performed at the Orphium Theater in Boston a few months
    back.
    
    Phil

    Re 30.  What does 'Digital has registered a "retirement plan action"
    with the State of MA' mean?

    just wishful thinking by alot of people in Georgia.