Sunday, November 30, 2008

Some companies phase in retirement

The December 2008 issue of Kiplinger reports that some companies are offering “gradual” retirement. For example, Abbott Laboratories near Chicago has started a program allowing employees over 55 with ten or more years of service migrate to a four day week or take five extra weeks of vacation. They keep benefits (especially health_ but cannot start defined benefit pensions. They may be expected to mentor younger workers.

The story also appeared today on p F3, Personal Finance, in the Business Section of The Washington Post, Nov. 30, 2008, and is authored by Anne Kates Smith from Kiplinger Personal Finance.

The Kiplinger blog entry is here.

It has been common for some companies to allow retirees to come back and work part-time as consultants, sometimes but always allowed to draw pensions. Sometimes, in some organizations, receipt of pensions have been predicated on complying with non-compete clauses, such as those required for employment to begin with.

It's also possible for employees who have "retired" full time, which can mean stopping a pension. Curiously, in bad economic times, sometimes there are specialized projects that only previous employees (often seniors) understand well enough to do efficiently.

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