Early retirement vs. Severance Package: What is the advantage of one over other?

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Anonymous said:
I qualify for the "Rule of 80" early retirement. But I don't know what would be the advantage of taking one vs. the other. Any expert advise out there?
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The advantage of retirement is that you would qualify for health insurance until Medicare takes over. If your age already gets you there..then agreed..no advantage!
 






I know you can collect unemployment with either.For those of us that qualify (I do) we will have to look at how many"extra" service years of credit they offer. If they take us out to age 65 that's huge. After all where else are we going to get a "pension" much less an offer like that. I think it's a once in a life time option. And, medical is a biggy too. If they pay a huge perentage of our medical, say 90% , it's a win-win. I don't want to leave I am too young to retire, but I can't look a gift horse in the mouth either.
 






Anonymous said:
I know you can collect unemployment with either.For those of us that qualify (I do) we will have to look at how many"extra" service years of credit they offer. If they take us out to age 65 that's huge. After all where else are we going to get a "pension" much less an offer like that. I think it's a once in a life time option. And, medical is a biggy too. If they pay a huge perentage of our medical, say 90% , it's a win-win. I don't want to leave I am too young to retire, but I can't look a gift horse in the mouth either.
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They did not offer this last year so make sure you get a lawyer or accountants opinion of the multiple page document that you will receive from Novartis.
 






Thank you. I don't know if they've ever offered an early retirement. So that's why we have to wait and see if it's true first of all. But then there has never been a 60% sweep of the sales force before either.
 






Having just been through all of this, maybe I can shed some light. Yes there are two packages. One package is for the folks who don't qualify for retirement benefits.You take the money and run. Obviously, the other includes the severance, plus normal retirement benefits earned for years of service.
 






Anonymous said:
Having just been through all of this, maybe I can shed some light. Yes there are two packages. One package is for the folks who don't qualify for retirement benefits.You take the money and run. Obviously, the other includes the severance, plus normal retirement benefits earned for years of service.
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If you are over 55, I assume that you qualify for the "retirement" package. What about the rule of "80" which I keep hearing reference to? Is that specific term being talked about? Are there enhancements to those that qualify, or you just get the severence money and your earned benefits, and you are pushed out the door? Most of those folks are in their late 50's or early 60's. Extremely difficult to find work at that age of life. How do they help bridge these people over?
 












I think the rule of 60 was created several years ago. At that time old Sandoz or Ciba reps were the recipients of this. Years of service and age combo. Rule of eighty must be the new 60!
 






Anonymous said:
The advantage of retirement is that you would qualify for health insurance until Medicare takes over. If your age already gets you there..then agreed..no advantage!
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As I understand it, if you already qualify for medicare then you can use the Novartis Medical as the medi-gap which will save you some $ and is a pretty good insurance to have.
 












Anonymous said:
Early retirement means you're probably going to die soon, severance package means you still have a life to live.
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I actually know of two people that left Novartis with early retirement and went to work for a competitor. Not a bad deal at all if you can get it.
 
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