# Company retirement process - how do you go about actually leaving?



## Gnote (Jan 7, 2015)

Is there a proper set of procedures one needs to follow to tell your company you're going to retire?

For example:

How soon is too soon? I get a payout for incentive every April, and quite frankly do not trust my company to give it to me if I let them know prior to receiving it that I'm planning on retiring. Should I be concerned about this?

Being a US corporation, I have received a sizeable amount of US stock from that organization, about $100,000. - wondering if I should just keep it where it is, or sell it all and move it to something in Canada.


I'm just not sure - do I give HR my resignation letter, or my boss? Can I even go to HR and discuss this with them - are they required to keep it confidential?

Any good advice here? I don't want to slip up on something I could have prevented. Anyone care to share a 'bad' story of something that happened to them?

Maybe I'm just being paranoid.

Thanks!


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## naysmitj (Sep 16, 2014)

I am not paranoid, but I would collect my April bonus and then have an amicable discussion with my manager.


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## bds (Aug 13, 2013)

I've had bad experiences with companies withholding money because I put in my resignation (intending to leave on good terms), I don't see why they would act any differently about retirement.

IMO, wait until that bonus is in your bank account before telling anyone in the office.


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## OnlyMyOpinion (Sep 1, 2013)

Gnote said:


> Being a US corporation, I have received a sizeable amount of US stock from that organization, about $100,000. - wondering if I should just keep it where it is, or sell it all and move it to something in Canada.


Presumably this is currently held in an account with an outside company such as Solium, not within your company. If that is the case, you can usually transfer in kind or in cash to an accont of your own (such as a trading account). I would consider how much of your total assets or 'nest egg' the $100k represents, and how compfortable are you having those eggs in the stock of your single company - or whether you should be more diversified. With the exchange rate, now is a good time to be converting to Cdn dollars if you are going to be needing them for retirement.
I'd prepare an appropriate letter of resignation addressed to my boss, with a suggested end date per my payday period (likely 2 weeks) and then meet to discuss with my boss. Depending on your circumstances, they may say you are done immediately or they may want you to stay for the 2 wks. HR will then get involved to handle the details.
As suggested, I would wait if possible until after the bonus is paid out since it is only a few months away.
Good luck with your decision. If you've thought about it and planned for it, you should find it an rewarding new chapter of your life


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## OhGreatGuru (May 24, 2009)

You should probably talk to your company HR. You speak of "retiring" rather than "resigning" so it shouldn't require any justification or explanation on your part.

_How soon is too soon? I get a payout for incentive every April, and quite frankly do not trust my company to give it to me if I let them know prior to receiving it that I'm planning on retiring._ 

If this is a bonus for not quitting during the past year (up to April) it would seem to me they've no grounds to withhold it. But if there is nothing in writing about terms & conditions, you may be right to be worried. But you should be able ask for clarification from HR in confidence - unless the company is so small that HR has no independence.

PS. Ordinarily I would say it is "bad form" to unnecessarily spring a surprise retirement on an employer. But US companies can be pretty cutthroat. So maybe you are right to be cautious.


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## Daniel A. (Mar 20, 2011)

Most companies need time to do the paper work leaving sooner may cause you to wait for the first pension check. 

HR would need to inform managers about your retirement but not your co-workers. 

I'd worry about the bonus I've seen it done best wait till the money is in the bank.


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## fraser (May 15, 2010)

'Loose lips sink ships'

Do not say a word to anyone until your bonus is in your bank account. You do not want to miss out on this entitlement or receive less simply because you are retiring.

If you have stock options make certain that you have a clear understanding of the vesting process and the impact of retirement and retirement age on my the vesting rules.


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## Gnote (Jan 7, 2015)

Thank you for your responses. Some clarification, the retirement is a year April, so I have 14 months to get organized. The stock represents a smaller percentage of my portfolio, I also have $600,000 in registered and non registered accounts, and another $130,000 in a non registered account where I deposit 5% of my pay, and the company puts in 4%. I also have a somewhat small pension of about $1,000/ mo coming to me, if I retire at 58, which I'll be next April. My performance at work is completely acceptable, and I've been employed with them since 2000. I don't think they are upset with my performance at all, but I absolutely do not trust them. Thanks again, I'm going to wait until the money is in the bank. Is there a confidentiality clause between employee and HR though?


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## Gnote (Jan 7, 2015)

I have vested shares, if I quit before a certain age, I lose them, however, because I'm over the age, and this is a retirement, I'm supposed to be entitled to them right away.


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## Davis (Nov 11, 2014)

Check to make sure you understand the vesting provisions. You don't want to make an error there.

Your HR department is there to serve the employer. There is no confidentiality to protect you. You are just a human resource. They are not there to protect your interests. For example, they will advise your manager on what to do to avoid a lawsuit for unfair dismissal. They will not advise you on how to sue the employer they work for.


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## AltaRed (Jun 8, 2009)

Given the OP uses the word 'retirement' and there has been stock involved in the compensation program, I have to assume the OP is in a fairly senior position and in good standing with his/her employer and has been with the company for many years. Depending on the position, the employer needs a certain amount of time to properly replace the OP. That could be 1 month for the average professional job to perhaps 3 months for more senior positions. In my case, I was a Project Manager on an International assignment so I gave 3+ months notice (>25 years with the company).

I visited with my Department Manager as a 'heads up' in early January and then provided formal notice via email a week or two later of a retirement effective April 30th. It did take them almost 3 months to find a replacement (domino effect pulling another Project Manager on International assignment in to replace me). 

It becomes public within the department/company once formal notice has been given so the OP has to make a judgement about how long s/he wants to become an 'outsider' in the company. Fellow worker relationships/attitudes do change perceptibly once it becomes known because of the 'lucky SOB syndrome'. 

In my case, I was mostly out of the office overseas so I had very little interaction physically in the office and I chose to essentially detach myself administratively. I did NOT advise my ex-company joint venture coworkers on the project (several multi-national companies) until 2 weeks prior to departure so that I was not a lame duck. So.... it is situational. Use good judgement. Be fair to the employer but don't cut them any unnecessary slack..


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## fraser (May 15, 2010)

It would be an error in judgement to assume any confidentiality between HR and Management when it comes to this situation. Same with any of your colleagues. Stay absolutely silent about your intentions until you have the bonus.

In some firms, stock options are regularly given to individual contributors, FLM's,etc. The variable was the number of options granted. They are a reward and in some situations a 'golden handcuff'. They are also effectively taxed like capital gains instead of income-at half the tax rate. It is a wonderful way to get a bonus. 

The company that I worked for allowed your vesting period to continue for up to three years IF you left prior to their deemed retirement age of 55. If you quit/retired prior to 55 the unvested options were lost, vested options had to be exercised or they expired.


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## nobleea (Oct 11, 2013)

As others have noted, you seem to be quite senior, and presumably well paid. To up and retire with only 2 weeks notice would be in extremely bad taste.
I work for an American company, though with a large Canadian presence. If anyone senior is thinking of retiring, the flag is raised informally well in advance. Companies want to make sure succession plans are in place, proper handovers/training is planned out, etc. Especially if your work is valued. I've heard of the opposite happening where VPs, etc try to convince less senior people to stay a bit longer, or work part time, or can you consult for us for the next few years until everything settles down.


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