homepage FINAL ANSWER ThinkRetire We will look into . AndThenThey BRLFLIER
JAN 29,2000 - THIS PAGE APPLIES TO IAM HERITAGE PLAN AS TO HOURLY.
Special Note - If you plan your last day of work to be in November or Dec- you WILL loose credited service you may be due have for unused/accrued vacation time. If you are told you "must work or take vacation time to the end of the month or similar ", ask to see the administrative procedure or plan document that backs that up .
Quite simply, there is NO such requirement - seems that payroll doesn't know how to properly handle your unused/accrued vacation time if your last day is on the 5th or 10th or anything but the last working day of the month . By working ONE HOUR in a month, you will get that month countted in your final average earnings calculation.
A more detailed explanation and references can be found at ThinkRetire
21 DEC 1998 - And when I contacted the company via e-mail -- We will look into . . .
Retirement- Some Choices
The purpose of this article is to highlight some features of the current Heritage Boeing retirement plan that can change your retirement check by $100 or more per year based on month and day of retirement.
This article is only a guide. The rules and calculations are complex. Before making decisions based on this article, verify your calculations with official sources. Use your annual chance to ask questions wisely.
The choice of a retirement date is yours. For some, family events or work situations are more important than the retirement dollars gained by working a few more weeks or months. Others may want to optimize their retirement pay by a careful choice of retirement dates. And some may want to consider the effects of unused vacation time on the books during the transition to a new plan.
Dollar figures are based on an employee with a nominal 30 years of service, Final Average Earnings (F.A.E.) of $50,000, and 170 hours of unused/accrued vacation time. The rules are explained in your booklet and plan documents. Credited service is calculated differently for exempt (salaried) and non-exempt employees.
For exempt, hours of service are credited at 45 hours per week or partial week of employment, with no credit for overtime. For example, 26 weeks of employment gives 1170 hours or 0.585 years of credited service.
For non-exempt, hours of service are hours worked, including overtime.
No credited service is given for paid or unused sick leave hours at retirement.
". . . each Participant shall be credited for each Plan Year with a fraction of a year, not exceeding one, determined by dividing the Participant's Hours of Service during the Plan Year by 2,000." 001 B0EW22A96.doc -6-
A Plan Year is the calendar year (Jan 1 - Dec 31)
1. Choice of Month.
Scheduling your last day of work in the months of October thru December may result in loss of credited service for unused and accrued vacation hours. A difference of $60 to $80 a year in retirement pay.
2. First of month or end of month? One hour of service in a calendar month includes the whole month in the F. A. E. calculation. This is worth about $30 to $40 per year dependant on salary history. Vacation time paid at retirement is not included in F.A.E. calculations.
3. Choice of day. For exempt, working on a Friday gives a full week or 45 hours credited service. This does not apply for non-exempt.
4. Unused/accrued vacation time. For exempt only, vacation hours paid upon retirement count toward credited service by conversion to weeks at 40 hours/week and then credited at 45 hours per rounded up week. For exempt, 170 hours of vacation time, amounts to 225 hours (.113 years), about $ 84/year. Non-exempt would be credited with 170 hours (.085 years), about $64/year.
The treatment of vacation time on the books during conversion to the new plan is unknown, and may be dependant on the effective date of the new plan or negotiations. Below is what I recently found out in December.
NOTE For the nonrepresented employees going to the New Plan on Jan 1, 1999: By taking a Snapshot on Dec 31 1998 instead of Jan 1, 1999, the company has effectively deleted all your unused and accrued vaction time from the CREDITED SERVICE CALCULATION. Guess how much this is worth over the next 10 or 20 years. Check your Booklet to find where that is explained. Lots of Luck . Hint
My e-mail address is dshuper@halcyon.com
Don Shuper
homepage FINAL ANSWER ThinkRetire We will look into . AndThenThey