Delta will now offer Early Out and Leave Packages

Discussion in 'Delta Air Lines' started by swamt, Jun 13, 2020.

  1. swamt

    swamt Veteran

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  2. Kev3188

    Kev3188 Veteran

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    There are 2 packages; an early retirement and a “voluntary opt-out.”

    To qualify for retirement, you’re age + Years of service needs to add up to 70 or more (by the end of the year). That gets you:

    -Up to 26 weeks of severance
    -2 years of paid medical
    -Up to $150k in a retiree medical account (RMA) depending on how far from Medicare eligible you are.

    For the Opt-out:

    - Up to 20 weeks severance
    - 1 year of paid medical

    Both packages also have some enhanced retiree pass travel items. Additionally, Anyone with 10 years of service whose age+ years of service add up to 55 is eligible for lifetime retiree travel.
     
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  3. swamt

    swamt Veteran

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    That doesn't sound too bad Kev. Delta is smart to offer the RMA $$. Most that are looking to go are worried about (mostly) medical, so with the 150K towards the RMA is a nice added bonus to think about.
     
  4. Kev3188

    Kev3188 Veteran

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    It's fantastic if you're in position to take it. My guess (and it's just that) is that we'll see a lot of takers in TechOps and from the Flight Attendant ranks. Not sure how other departments will shake out...
     
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  5. swamt

    swamt Veteran

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    If I were 6 years older I could have taken the VSP. Years salary, years co. paid medical, sell back my sick hours for 5-7 years of medical coverage to get into medicare. Too many years away from that medicare number right now.
    I just hope the co gets their numbers they want. We do expect some movements coming after the retirements take place and hopefully no layoffs.
     
  6. Glenn Quagmire

    Glenn Quagmire Veteran

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    I'd have 33 years today and still would not take that. The medical would not get me close to medicare (I started young). If I had another job lined up, I would...but good luck with that.
     
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  7. Kev3188

    Kev3188 Veteran

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    +1

    I just miss the 70 pt. cutoff. The difference between retirement and the voluntary opt-out for me is ~$200k. I’ll be sticking it out...
     
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  8. NewHampshire Black Bears

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    Excellent Choice Kev, You WON'T regret it !!!!
     
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  9. eolesen

    eolesen Veteran

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    +2. Maybe if I was eligible to start drawing my pension and tap into my 401K/IRA without penalties (I started young, too), but I'm not.
     
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  10. dfw gen

    dfw gen Veteran

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    if you retire from the company that contributes to your 401k you can draw without the 10% penalty if you retire at 55.
     
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  11. swamt

    swamt Veteran

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    Are you sure? First I have heard of that. Not saying you are wrong at all. This is interesting if true, some other guys may do it if what ya say is correct. If some could go at 55 without early draw penalties they may pull the trigger. Time to research...
     
  12. Kev3188

    Kev3188 Veteran

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    That’s correct. You just have to turn 55 in the same calendar year you start withdrawals. As noted above, this applies to company run 401ks or 403bs, and not retirement vehicles like an IRA.
     
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  13. Slamdunk

    Slamdunk Member

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    This is Deja Vu all over again.

    I left Delta during "project 7.0" in 1994 and I was line mtc.. Never thought this would happen again! Maybe it did after 9/11.

    If you are eligible to take the early retirement, you would be crazy not to ,unless you feel very, very strongly that Delta will be around 10 yrs from now- and they probably will be, but you don't know what shape the airline will be in or where future cuts will be made. You will be sitting on a bubble for the next ten years. Not an enviable position to be in.

    If you are under 35, you have a lot of life left in you and this is a great time to think career change-you have some thirty years to figure it out and get your lives back on track. You don't want to be facing this decision when you are in your fifties! Starting over in your fifties is way scarier!

    If your are between 35 and 55, you are in as good a place as any. With early outs and furloughs, any future reductions will cut the airline to the bone. If Delta survives, you will too. And, Delta probably will survive. You have a lot of time invested with this company.

    In any case, if you have not been trimming the fat in your personal budgets, you need to start right away and start saving for that rainy day and retirement.

    The ages I used above are for reference only. I know a lot of people in their fifties and sixties who have a lot more intelligence and energy than I do and can come out of this smelling like a rose no matter what they do! I also know that most of my co-workers rode it out in 94 and Some took the golden hand shake offered in the 2000's; and the rest are now in their mid to late fifties looking at this great package and the next ten years.

    I guess the moral of this post is this, you can expect this every ten years or so. The question is, where do you want to be financially ten years from now and plan accordingly.

    Best of luck
     
  14. eolesen

    eolesen Veteran

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    To quote a famously satirical movie almost certain to be banned shortly, "It's twoo, it's twoo!"

    You can take early withdrawals at 55 1/2 from your pension (including PBGC for now) and your 401K *at your current employer* if you retire during the year you turn 55. Google "Rule of 55" for details.

    It's still taxable, and you can't pull funds until age 59 1/2 from an IRA or from a 401K at a previous employer that you left with them instead of doing a rollover to your current plan. Then again, anyone who hasn't done a rollover of an old plan probably doesn't deserve to get access to it.
     
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  15. swamt

    swamt Veteran

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    #15 swamt, Jun 30, 2020
    Last edited: Jun 30, 2020
    Will do, thanks.
    Thanks for the shortcut. Found it and posted small portion of it below. Interesting as I have not heard anyone at work discuss this option so far, so I am wondering if some even know. Surly our co is giving this info out in the retirement seminars they are now on going at work for our employees thinking about it. I will pass on this info for our 55 and older folks to ponder with.

    Rule 55:

    The distributions are not completely tax free: Like all withdrawals from a traditional 401(k) or 403(b), you do have to pay income tax. (The employer is required to withhold 20% from any Rule of 55 withdrawal for federal income tax, which is non-negotiable.) Only the 10% tax penalty is bypassed in this scenario.

    In addition, note that employers are not obliged to allow early withdrawals; and, if they do allow them, they may require that the entire amount be taken out in one lump-sum withdrawal. This could expose you to a higher income tax.

    This rule applies to current – not former – 401(k) or 403(b) plans. The government does not permit penalty-free withdrawals before 59 ½ from plans you had with a previous employer. If you want access to that money under the Rule of 55, you would have to transfer those funds into your current 401(k) or 403(b) plan.
     

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