Retirement Bonus

[ExplorePS]

Does anyone work in HR or has knowledge of whether a retiring employee should expect a cash bonus? Not sure if this is a thing in the past or whether it depends on years of service. Appreciate understanding if there is an industry standard. TIA!

 

[Lookinagain]

I don't know how this is handled in various industries, but I've never heard of a "retirement bonus" no matter years of service. and I have several friends who have retired from different types of jobs. You might get a gift, like the "gold watch" or something else, but not cash. I do know that some companies may offer people a cash payout if they take a retirement earlier than they normally would, but I don't think that is what you are asking about. For someone who voluntarily retires without some "early retirement" offer, then I'm not aware of that. If others are aware of them, maybe they can tell you in what industry/jobs/careers that they are given and general location as perhaps where you live impacts the answer.

 

[kenny]

I've never heard of a retirement bonus.

Perhaps in some industries when a muckety-muck with many decades of exemplary service and reaches a certain level of muckety-muckness there is some tradition besides the gold watch (which itself sounds like an antiquated tradition).
I doubt there is any law guaranteeing this though.

 

[MissGotRocks]

Particularly in today’s world, I would not expect such a thing. Being able to retire is a bonus in itself!

 

[canuk-gal]

HI:

Never heard of this practice/benefit in either government or private employment.

cheers--Sharon

 

[Karl_K]

It is not common in the US but it happens.
Retirement bonuses are sometimes offered to those that are eligible to retire but haven't.
Someone I know got 35 weeks pay..one per year worked.
Its cheaper than a lay off for the company and when things pick up they think they can hire someone for less pay/benefits.
Its more common in union work places where its harder to let someone go.

 

[Asscherhalo_lover]

Not a "bonus" by any means but I will get paid out for my accrued sick days not used when I retire. I am a public employee.

 

[MissGotRocks]

I have heard of incentives for retirement being offered in a sum like a couple of thousand dollars or an offer of having your health insurance paid for a short period of time. The purpose of this to incentivize folks to retire if they already qualify for it in terms of years of service. In today’s market, I think these offers remain few and far between.

 

[Lookinagain]

Not a "bonus" by any means but I will get paid out for my accrued sick days not used when I retire. I am a public employee.

Yes, I got paid out for my accrued but unused vacation time when I retired from a corporation. Since it was a "vested" benefit they had to do that (at least in my state). Sick time for me was not "vested" so unused sick time wasn't paid out. But I don't see either of these pay outs as a bonus because it is just paying you for an unused vested right.

I have heard of incentives for retirement being offered in a sum like a couple of thousand dollars or an offer of having your health insurance paid for a short period of time. The purpose of this to incentivize folks to retire if they already qualify for it in terms of years of service. In today’s market, I think these offers remain few and far between.

Yes, that's the kind of bonus I was referring to. An incentive to retire earlier than they may have planned. I've typically seen them when the company may have to lay people off, so they will offer this to some which reduces staff without actually laying people off (or laying fewer off).

 

[Asscherhalo_lover]

Yes, I got paid out for my accrued but unused vacation time when I retired from a corporation. Since it was a "vested" benefit they had to do that (at least in my state). Sick time for me was not "vested" so unused sick time wasn't paid out. But I don't see either of these pay outs as a bonus because it is just paying you for an unused vested right.


Yes, that's the kind of bonus I was referring to. An incentive to retire earlier than they may have planned. I've typically seen them when the company may have to lay people off, so they will offer this to some which reduces staff without actually laying people off (or laying fewer off).

Now your last sentence is different, it CAN happen for public employees, although it's rare. If I ever get the opportunity I'll snap it up! They did this with one of our former teacher contracts. Most of us had to wait 7 years to get all of our retroactive pay BUT teachers retiring were able to get it as a lump sum. Plenty took it and said goodbye.

 

[AprilBaby]

I didn’t get a thing from retirement.

 

[christie2]

We only know the most minuscule fraction about life, ourselves and the universe and even that changes daily. To only believe what science can prove right now is like living inside a small box and not being open to the possibilities that lay outside.

How do retirement incentives and payout policies differ between private corporations and public sector jobs, and what impact do these differences have on employees' retirement decisions?

 

[Amber St. Clare]

When my husband was let go from a tech co. he was given a substantial bonus he knew he was getting. He went to another job which was a non profit and he didn't expect anything , but he got one.

 

[Daisys and Diamonds]

It is not common in the US but it happens.
Retirement bonuses are sometimes offered to those that are eligible to retire but haven't.
Someone I know got 35 weeks pay..one per year worked.
Its cheaper than a lay off for the company and when things pick up they think they can hire someone for less pay/benefits.
Its more common in union work places where its harder to let someone go.

sounds like redundency dressed up as early retirement

 

[Daisys and Diamonds]

Yes, I got paid out for my accrued but unused vacation time when I retired from a corporation. Since it was a "vested" benefit they had to do that (at least in my state). Sick time for me was not "vested" so unused sick time wasn't paid out. But I don't see either of these pay outs as a bonus because it is just paying you for an unused vested right.


Yes, that's the kind of bonus I was referring to. An incentive to retire earlier than they may have planned. I've typically seen them when the company may have to lay people off, so they will offer this to some which reduces staff without actually laying people off (or laying fewer off).

i would hope in most places by law they have to pay out accrued annual leave

 

[Lookinagain]

i would hope in most places by law they have to pay out accrued annual leave

From what I know, in the U.S. vacation time is generally called either "accrued" or "use it or lose it". Accrued means you get some each pay period and generally it becomes vested. Use it or lose it means you get your entire years worth of vacation on January 1, and if you use it that year, fine. If you don't it's gone. But the next Jan. 1 you get that entire years worth again. I think that both are "vested" meaning you'd get paid out if you had any left when you left your job. At least this is how I understand things, but maybe other people live places where it is different. I do think that the jobs today offering "unlimited" vacation doesn't give people any vested time. So nothing when they leave. Which means the company doesn't have to carry unpaid/unused vacation time on their books as a liability.

 

[rocks]

Back in the day my father invested in a “retirement fund” for each employee (they didn’t participate). He and my uncle had retirement party for each (gold watch and all), and presented a “check”. The first employee to retire almost passed out when he saw the amount. I know this was unusual.

 

[Daisys and Diamonds]

From what I know, in the U.S. vacation time is generally called either "accrued" or "use it or lose it". Accrued means you get some each pay period and generally it becomes vested. Use it or lose it means you get your entire years worth of vacation on January 1, and if you use it that year, fine. If you don't it's gone. But the next Jan. 1 you get that entire years worth again. I think that both are "vested" meaning you'd get paid out if you had any left when you left your job. At least this is how I understand things, but maybe other people live places where it is different. I do think that the jobs today offering "unlimited" vacation doesn't give people any vested time. So nothing when they leave. Which means the company doesn't have to carry unpaid/unused vacation time on their books as a liability.

use it or loose it ????????

i know from experience employers dont like us to keep too much up our sleeves because they are surrposed to keep the money seperate (so in theory its protected if the bussiness goes bust) but its the emplyee's money
my last employer would pay out a week in cash per year to try to get the amount down, but if you have good reason to save up leave - like an extended overseas trip (Or when i was younger and my dad had terminal cancer) its usually ok to not take all of it each year

sick leave accrues but of course its only for when you are sick and not payable out, when my dad got sick he had six months of untaken sick leave to fall back on

 

[Lookinagain]

use it or loose it ????????

i know from experience employers dont like us to keep too much up our sleeves because they are surrposed to keep the money seperate (so in theory its protected if the bussiness goes bust) but its the emplyee's money
my last employer would pay out a week in cash per year to try to get the amount down, but if you have good reason to save up leave - like an extended overseas trip (Or when i was younger and my dad had terminal cancer) its usually ok to not take all of it each year

sick leave accrues but of course its only for when you are sick and not payable out, when my dad got sick he had six months of untaken sick leave to fall back on

I think it depends on the job and whether you are in the private or public sector. The use it or lose it sounds harsh but many private companies will cap the amount of vacation you can carry over from year to year. So in an accrual, if I have 4 weeks per year, and use 3, then I still have one that carries over, but can only accrue 3 more, if the company caps it at 4 weeks. If I was in a use it or lose it, and had 4 weeks, if I only used 3 in a given year, the 4th would be gone, however, on Jan. 1 I'd have the full 4 weeks for the year to use. Where as in the accrual state, I'd only have the one carried over from the prior year on Jan 1 and the additional 3 weeks would accrue during the year.

Again, depends on private or public sector, and just how each company handles it. Anything beyond your sick time would come under your short or long term disability insurance (which you may or may not pay for, again, depending on the job).

 

[Daisys and Diamonds]

I think it depends on the job and whether you are in the private or public sector. The use it or lose it sounds harsh but many private companies will cap the amount of vacation you can carry over from year to year. So in an accrual, if I have 4 weeks per year, and use 3, then I still have one that carries over, but can only accrue 3 more, if the company caps it at 4 weeks. If I was in a use it or lose it, and had 4 weeks, if I only used 3 in a given year, the 4th would be gone, however, on Jan. 1 I'd have the full 4 weeks for the year to use. Where as in the accrual state, I'd only have the one carried over from the prior year on Jan 1 and the additional 3 weeks would accrue during the year.

Again, depends on private or public sector, and just how each company handles it. Anything beyond your sick time would come under your short or long term disability insurance (which you may or may not pay for, again, depending on the job).

my 'like' reaction is you explaining.
not the actuals
i see that as thieft