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Old Jan 18, 2011, 12:58 PM
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Rehiring of retirees

Long article in the local paper about the City of Austin rehiring retired city workers. It covered all aspects pretty well. My situation on retirement (Illinois) was that after 60 days I could be hired by the state at no more than 80% if my previous highest salary. I did not take them up on it. When the state lowered the minimum retirement age for everyone but teachers and professors to 55, the next year 80% of the early retirees had been rehired. If I took a non-state job, that was my business, and there was no effect on my retirement.

One vice of rehiring is that jobs are not opened up for new hires. The virtue is that experienced people can be retained at a fairly low cost, part time in many cases, and no benefits (ss copayment, I suppose, or maybe independent contractor?). In the private sector, I know of retired (laid off, as well) people who do consulting work for their former employer. So it is not just a public employee thing.
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Old Jan 18, 2011, 01:28 PM
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United Kingdom, Aberdeen
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Presumably the main point is that they are rehired without any of the associated benefits packages - such as healthcare and, of course, pension provision, - making them less expensive than brand new full time staff of similar levels of experience.
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Old Jan 18, 2011, 02:18 PM
Official Old Git!
Hampshire, UK
Joined Sep 2000
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Originally Posted by leccyflyer View Post
Presumably the main point is that they are rehired without any of the associated benefits packages - such as healthcare and, of course, pension provision, - making them less expensive than brand new full time staff of similar levels of experience.
Leccy.. but businesses wouldn't do that to people...

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Old Jan 18, 2011, 03:07 PM
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Norman, all those benefits are already part of the retirement. My wife taught part time at the university for 22 years. During the last five years, the law was changed and she was in the retirement system. She decided to actually retire and went over to get her retirement investment of less than $1000 back. Advisor talked her out of it. So she retired in the system. I had been paying $60/month for her health care as a dependent. Now she has her own free health care, and gets a retirement check slightly larger than my SS check. She got the $1000 back in well under a year of retirement.
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Old Jan 18, 2011, 03:09 PM
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United States, CA, Bear Valley Springs
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My prior employer couldn't afford what it would take for me to go back. There are many reasons that I retired the very day I became eligible. We had a nice party the day before I left and I suspect there was another the following Monday.

mw
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Old Jan 18, 2011, 07:20 PM
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Des Moines IA
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I'm a late babyboomer 59 vintage and won't be able to retire at this point giving the perpetual increasing age requirement.

looking at my yearly wage would scare the crap out of most of you anyway.
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Old Jan 18, 2011, 08:39 PM
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Houston Intercont, Texas, United States
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I retired back in 1992. They kept on calling me back and I did go back every once in a while. The last time they called me back was in 2008 when I was 75 years old. I went back for about 8 months, and then told them to forget it. That I was too old, and wasn't going to work anymore. Now that I'm not working anymore, I wish I was. I worked hard all my life, and it is hard to not have to do anything. I have to admit that I was kind of flattered to be called back at such an old age. I must have done something right.
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Old Jan 18, 2011, 09:00 PM
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Arizona
Joined Oct 2001
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Mike, you must have been a very valuable employee to be so wanted by your company! Congratulations on a job well done!

I'm so happy to have finally abandoned all gainful employment! Life is great.
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Old Jan 18, 2011, 09:17 PM
LcJ
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Originally Posted by mikefast View Post
I retired back in 1992. They kept on calling me back and I did go back every once in a while. The last time they called me back was in 2008 when I was 75 years old. I went back for about 8 months, and then told them to forget it. That I was too old, and wasn't going to work anymore. Now that I'm not working anymore, I wish I was. I worked hard all my life, and it is hard to not have to do anything. I have to admit that I was kind of flattered to be called back at such an old age. I must have done something right.
Today that would translate to showing up sober and working all day! Times, they are a changing.

It appears hard work served you and them well.
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Old Jan 18, 2011, 09:27 PM
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So we have government employees drawing a retirement and getting paid too for the the same job the government could pay one person to do.... and we get the benefit of not having a job open up for some other unemployed or under employed person. Sounds like a good deal to me. Especially when these very same people boosted their retirement pay by collecting all sorts of unused paid time off and dumped it into the formula that computed their retirement pay.

I was talking to my dad the other day and he says he remembers quite clearly having a discussion with a local government official that said, we can't pay these union people what they are asking so we're offering them sweeter retirement pacakges instead. Well, guess what? Retirement time is here and many of our cities and states are bankrupt. I wonder why that is?
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Old Jan 18, 2011, 09:35 PM
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Tucker, Georgia, United States
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Originally Posted by leccyflyer View Post
Presumably the main point is that they are rehired without any of the associated benefits packages - such as healthcare and, of course, pension provision, - making them less expensive than brand new full time staff of similar levels of experience.
This was true with my sister, she was "management" her whole career at the power company, meaning, non-union, and executive the last ten years or so, but had 37 years. She was miserable the last five years, but was torn with how accelerated her benefits grew with every extra year she added on and retired at 60, when they offered a years severance for early retirement. This did suspend her accrual of benefits, and within a month they asked her to come back to work. She said, she might consider coming in "every once in a while" to fill in, they said they wanted her full time, I think she laughed....

They offered this to a certain number of employees, with X amount of service and it was "you have X number of days to accept the terms". Most definitely this was, in her case, a way to cut payroll, then attempt to regain some of the employees at a lower rate of expense to the company.
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Old Jan 18, 2011, 09:36 PM
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Tucker, Georgia, United States
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Originally Posted by Mark Wood View Post
My prior employer couldn't afford what it would take for me to go back. There are many reasons that I retired the very day I became eligible. We had a nice party the day before I left and I suspect there was another the following Monday.

mw
I think my sister's boss had a party too, like I said, she was unhappy the last five years.
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Old Jan 19, 2011, 06:19 AM
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Hampshire, UK
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I was offered redundancy at 55 (or some other fancy term, 'coz IBM doesn't "do" redundancy) along with many others of around the same age. Had 2 weeks to decide, but actually only 2 days as we were going on vacation.

Crunched the numbers, Ummm'd and Aaah'd, then decided that, as I'd decided to retire at 58 anyway (based on fathers etc early death) we'd go for it!

Have enjoyed it all, and not missed the Corporate BS which tended to prevent me doing my job. Still do masses of fixing and problem solving for friends and acquaintances - so get to puzzle things out!

I'd recommend retirement to anyone - as long as you can pay the basic bills!
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Old Jan 19, 2011, 06:47 AM
LcJ
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Originally Posted by Mr. Wiz View Post
So we have government employees drawing a retirement and getting paid too for the the same job the government could pay one person to do.... and we get the benefit of not having a job open up for some other unemployed or under employed person. Sounds like a good deal to me. Especially when these very same people boosted their retirement pay by collecting all sorts of unused paid time off and dumped it into the formula that computed their retirement pay.

I was talking to my dad the other day and he says he remembers quite clearly having a discussion with a local government official that said, we can't pay these union people what they are asking so we're offering them sweeter retirement pacakges instead. Well, guess what? Retirement time is here and many of our cities and states are bankrupt. I wonder why that is?
It is called long range planning. Any decision made by any government on any increase in spending should be projected for at least 10 years to determine impact on future budgets. Surpluses are a dirty word in some circles for government, but without them they are (as we now see) doomed.
Basic principles I have developed for governmental spending until you reach a surplus that can guarantee your operations for one year after future income ceases for whatever reason.

1. Always budget for next year with the actual (outside of any protested or escrowed income) cash received in the second preceding year. You budget to spend in 2011 the actual receipts for 2009.

2. Do not increase any spending in any budget year unless you have projected its effects over the next 10 years. Base all projected income on 1/2 the level of increase for the past 10 years and all projected expenses at the highest level of the past 10 years.

3. Plan for recurring replacements for all equipment and major building component failure. Accrue (set aside) annually for such cost and hold them in reserve for needed replacement of roofs, ac's, computers, etc.

4. Never spend surpluses for recurring costs.

5. Never budget for expenditure more than 95% of actual funds available for expenditure in that year.

Basic assumption from 37 years of observing governmental budgets. In any year all available income is budgeted, the following year will operate in a deficit position.

These might seem overly simple, but the are realistic and they work. We can never operate a governmental unit from the standpoint of feeling good, but from the standpoint of surviving from one year through the next decade.

We have an obligation to the citizens who pay our way and to the people we hire that we will operated in a fiscally sound manner with an eye towards the future and another eye toward the past. It is the present we live in, the past we live with, and the future we live for. We must be sure they are seamless at any point in time.
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Old Jan 19, 2011, 07:09 AM
Targeted and... FIRING !
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United States, MI, Eastpointe
Joined Aug 2007
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Quote:
Originally Posted by Mr. Wiz View Post
So we have government employees drawing a retirement and getting paid too for the the same job the government could pay one person to do.... and we get the benefit of not having a job open up for some other unemployed or under employed person. Sounds like a good deal to me. Especially when these very same people boosted their retirement pay by collecting all sorts of unused paid time off and dumped it into the formula that computed their retirement pay.

I was talking to my dad the other day and he says he remembers quite clearly having a discussion with a local government official that said, we can't pay these union people what they are asking so we're offering them sweeter retirement pacakges instead. Well, guess what? Retirement time is here and many of our cities and states are bankrupt. I wonder why that is?
Damn Wiz, you're starting to sound like me !
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