GLGA Member Question – Retirement Policies
I have a question that I’d like to try to get some ‘standards’ on. We are a company of about 100 employees and just had our first retirement. Do companies have a ‘retirement policy?’ What do you do for gifts, payouts of PTO, etc.? What are the eligibility criteria for it to be considered a ‘retirement’ (minimum years of service, etc.)?
We use an age and length of service for retirement. 25 years of service and 55 years of age; 15 years of service and 60 years of age or 10 years of service and 65 years of age.
We give a gift of retiree life insurance and pay out all accrued time off.
On the last day of work we have an employee get-together during the morning break, at which time a member of management recognizes the retiree for his or her years of service, etc. and a gift is presented to the retiree, cake is served and employees extend their congratulations and well wishes to the retiree. The retiree usually leaves shortly after this; however, is paid for the entire shift.
On the last pay period following the last day of work, all remaining vacation & pro-rated vacation is paid out along with all remaining sick leave benefits (providing retiree meets company guidelines)
We don’t have an official policy, but, for anyone that retires, we have cake and ice-cream and the entire company is invited to celebrate. The president will give a speech. If it is someone that has been with the company for a very long time, we would usually give them a nice gift. For example, a laptop. Our payouts would follow the state of Illinois laws.
It depends on the person and depends on how long. We can do a cake on their last day or we can do a dinner with the person department. No gifts.
We do not have a formal policy but we do have a very casual cake and coffee celebration where I will say a few words and the present the retiree with a gift to remember us by. The value would be very similar to the value of the gift they would receive as part of our years of service program.
We actually just had out first two retire earlier this year as well. We just did a little write up for the local paper thanking them for their years of service and gave them each a <$200 gift.
We don’t have a formal policy. Whenever someone leaves voluntarily, we pay out any accrued vacation they have earned. If someone is retiring (not going to another job) we usually have a luncheon for them.
We don’t have a particular retirement gift other than 5-year increment service awards at $10 per year. We’ll have a luncheon or pizza for special occasions for all shifts. Earned PTO is paid out regardless of retirement.
We currently have 35 employees. Many have been here a long time. I have been here 8 years and am still one of the “newbies”.
We don’t have documented standards, but I have been tracking retirement gifts for the last 5 years (we have had 4 people retire in that time). Those that have retired have been here at least 17 years. I would consider 10+ years as eligible for a retirement gift, or maybe 15+ years. Up to 20 years we have done a $500 net bonus. For 20-24 years, a $500 net bonus check and maybe a smaller gift. For 25+ years the check would be more. We have only had one of these so far, so I don’t have a range yet.
Our employee handbook states that any unused PTO time will not be paid out, regardless of the reason (voluntary or involuntary), so PTO payout is not a factor.
We also usually do a cake or other dessert at their “going away” party.
We have a table with a dollar amount we spend on retirement gifts based on years of service. We also have a party for people who have been with us five years or more
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