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#2100567 - 09/27/16 04:34 PM Retirement Incentive Package
GrannieTwo Offline
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Joined: Nov 2010
Posts: 180
Central IL
We are a small community bank, 21 FT 3PT employees. We do not have a Human Resource department. Reading what I can on BOL-HR, it confirmed what we thought, that we can't have in place a mandatory retirement age, but we could offer a retirement incentive package. My question is this, does anyone have a retirement incentive package they would share or would anyone be able to point me in a direction to begin. We have EIGHT employees over 60, one of which will be 70 in a few months. We have to get our house in order for the upcoming exodus. Thanks ahead of time.
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Human Resources
#2100621 - 09/27/16 06:51 PM Re: Retirement Incentive Package GrannieTwo
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,844
Pulling people out of the ditc...
what do you mean by retirement incentive package? meaning you pay them to leave now? or offer a retention pay where they stay until a certain date and get lump distribution then?
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#2100697 - 09/28/16 11:39 AM Re: Retirement Incentive Package GrannieTwo
osucpa Offline
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Joined: May 2011
Posts: 1,406
I would recommend talk to legal counsel which specializes in HR type issues. During this process you need to look at succession planning.

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#2100794 - 09/28/16 04:52 PM Re: Retirement Incentive Package GrannieTwo
GrannieTwo Offline
100 Club
Joined: Nov 2010
Posts: 180
Central IL
Thank you. A incentive package to retire early. I've heard of companies using age plus years of service = X amount and then the employee would be entitled to a retirement package. And thank you for the suggestion to our contact our legal counsel but unfortunately they do not specialize in HR type issues. But that doesn't mean they can't connect us with a firm that does.
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For when I am weak, then I am strong. 2Cor 12:10

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#2100797 - 09/28/16 05:14 PM Re: Retirement Incentive Package GrannieTwo
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,844
Pulling people out of the ditc...
certainly no HR or legal expert, but I asked our HR department recently if we could offer one of our employees a little something to retire - answer was that it must be offered to anyone meeting certain criteria, can't pick and choose based solely on an individual, and must also meet a certain percentage of employees before that can be done.

while I don't have much faith in many things our HR department tells me, I will agree that you need to seek guidance form a consulting firm specializing in HR issue, or a law firm that does the same. last thing you want is a lawsuit from an employee, retiree, or department of labor about discrimination.
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#2100824 - 09/28/16 06:14 PM Re: Retirement Incentive Package GrannieTwo
GrannieTwo Offline
100 Club
Joined: Nov 2010
Posts: 180
Central IL
Thanks HappyGilmore. I will contact our legal counsel and see what they think or point us to a firm that handles HR issues.
_________________________
For when I am weak, then I am strong. 2Cor 12:10

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