September 17, 2006
Ford buyout options
The buyout programs are available to all active UAW Ford workers, provided they meet eligibility guidelines for the specific program. Every active UAW Ford employee qualifies for at least one of the programs. These buyout packages are voluntary.
1) Special Retirement: $35,000 for workers electing retirement
2) Special Early Retirement: Receive an unreduced life income benefit based on years of service starting immediately, instead of receiving a reduced benefit until age 62.
3) Pre-retirement leave: On leave from work assignment and receive 85 percent of hourly pay until reaching 30 years of credited service. During leave, continue to accrue retirement credit; receive holiday pay at 85%; receive vacation pay at 100%; eligible for Christmas bonus; receive profit-sharing; receive all insurance and benefits.
4) Special Termination of Employment: Receive a lump sum payment of $100,000, minus applicable taxes, and basic medical benefits, less dental and vision, for six months. After six months, workers may continue health insurance at their own expense through COBRA.
5) Enhanced Special Termination of Employment: Receive a lump sum payment of $140,000 minus taxes. Benefits same as Special Termination of Employment (#4 above).
6) Educational Opportunity Program: Receive up to $15,000 of tuition a year for up to four years of paid college or vocational school and an annual stipend worth 50 percent of wages. Health insurance and other benefits continue during this four- year period, but pension credits do not accrue.
7) Focused Education Opportunity Program: Two years of tuition payments, up to $15,000 per year (instead of four years) and 70 percent of wages instead of 50 percent.
8) Family Scholarship Program: Receive an account totaling $100,000, which can be used for approved educational expenses for children or spouses. Funds will be taxed upon withdrawal. Funds will be available for a 10-year period from the employee's date of termination.
Eligibility Dates: December 31, 2005 through August 31, 2007
Source: www.uaw.org
1) Special Retirement: $35,000 for workers electing retirement
2) Special Early Retirement: Receive an unreduced life income benefit based on years of service starting immediately, instead of receiving a reduced benefit until age 62.
3) Pre-retirement leave: On leave from work assignment and receive 85 percent of hourly pay until reaching 30 years of credited service. During leave, continue to accrue retirement credit; receive holiday pay at 85%; receive vacation pay at 100%; eligible for Christmas bonus; receive profit-sharing; receive all insurance and benefits.
4) Special Termination of Employment: Receive a lump sum payment of $100,000, minus applicable taxes, and basic medical benefits, less dental and vision, for six months. After six months, workers may continue health insurance at their own expense through COBRA.
5) Enhanced Special Termination of Employment: Receive a lump sum payment of $140,000 minus taxes. Benefits same as Special Termination of Employment (#4 above).
6) Educational Opportunity Program: Receive up to $15,000 of tuition a year for up to four years of paid college or vocational school and an annual stipend worth 50 percent of wages. Health insurance and other benefits continue during this four- year period, but pension credits do not accrue.
7) Focused Education Opportunity Program: Two years of tuition payments, up to $15,000 per year (instead of four years) and 70 percent of wages instead of 50 percent.
8) Family Scholarship Program: Receive an account totaling $100,000, which can be used for approved educational expenses for children or spouses. Funds will be taxed upon withdrawal. Funds will be available for a 10-year period from the employee's date of termination.
Eligibility Dates: December 31, 2005 through August 31, 2007
Source: www.uaw.org
September 15, 2006
Take the Ford UAW buyout offer?
Ford is offering voluntary system-wide buyout packages for more than 75,000 active UAW Ford hourly workers, including:
- Special retirement incentive
- Special early retirement
- Pre-retirement leave
- Special termination of employment
- Enhanced special termination of employment
- Educational opportunity program
- Focused education opportunity program
- Family scholarship program
What are your initial thoughts? If you're a Ford worker, how do you feel about the buyout offers? If you're a financial advisor or career counselor, what do you advise?
Use the comments section to discuss Ford's buyout offer to UAW hourly employees.
Ford buyout offer for hourly workers
This website will be a resource for Ford employees considering a buyout offer. Use the "comments" to solicit advice, offer your recommendations, discuss the retirement, pension, benefits and health care provisions, find a financial advisor, etc.
More to come...
More to come...
