Reduction in separation pay formula

Discussion in 'Johnson & Johnson' started by Anonymous, Sep 26, 2014 at 8:12 AM.

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  1. Anonymous

    Anonymous Guest

    The current separation pay policy is 2 weeks for every full year of service with certain minimums depending on the position classification. The next shoe to drop following the changes to retirement medical and the pension is a change in this policy to one week for every full year of service. With the upcoming RIF's, mergers, and divestitures, J&J is seeing viewing their policy as overly competitive and will need to reduce the costs associated with upcoming changes in 2015. Be prepared that the financial bridge provided while you seek other employment will not be as generous as it once was. Welcome to the new J&J.
     

  2. Anonymous

    Anonymous Guest

    What are your sources and when does it take effect?
     
  3. Anonymous

    Anonymous Guest

    What was the change in retirement medical? i know about the change in pension, but I forget the details of the retirement medical....that happened a year or two ago, right? I can't find any info on it. Anyone know?
     
  4. Anonymous

    Anonymous Guest

    Th change in retirement medical came down about 4 months ago. Anybody hired AFTER December 31, 1987 does not get access to JNJ medical benefits at employee rates. The new plan is coverage, but at a higher rate and essentially ACA defined benefit plans.
     
  5. Anonymous

    Anonymous Guest

    Just got a preview of the changes to the comp and bonus plans for 2015 and we should all be prepared to take a huge hit. The take aways keep coming a little at a time.
     
  6. Anonymous

    Anonymous Guest

    So the retiree medical benefits got reduced. Is there an estimate of how much of an impact is this? I wonder how much more we will be paying, or how much less coverage there is.

    Does this mean there is no reason to really wait until 55 to retire (which historically was when you got g'teed medical benefits)?
     
  7. Anonymous

    Anonymous Guest

    I am not sure I agree with the 1987 comment. I just went through the Retiree Medical Plan benefit summary and I did not see any mention of this. Can you clarify? I am getting ready to retire before year end and would like to understand all the hidden clauses.
     
  8. Anonymous

    Anonymous Guest

    Well, not quite accurate - if you have 10 years and reach age 55 before 1/1/16 you can access several levels of 'points' that determine J&J participation in your benefits. Employees can look it up on the HR site.
     
  9. Anonymous

    Anonymous Guest

    This point system was established with a very specific intent. J&J can change the value of these points over time and will push individuals to the government exchanges and off of the retiree medical plan.

    All of these take aways are being done in piece mail fashion deliberately so the negative perception of these takeaways is lessened. But, make no mistake about it, they will continue to come in drips and drabs until every value proposition that employment with J&J offers is reduced to merely nothing. Until they start struggling to attract and retain talent, the takeaways will continue. As another poster put it "J&J may be overplaying their hand" with all of these changes and takeaways.
     
  10. Anonymous

    Anonymous Guest

    BUT JNJ will be closer aligned with other companies!!

    YES!!!! The company with the so called CREDO (SHAREHOLDERS, COMMUNITY, employeeees..) is bench-marking itself to MEDIOCRITY!!!!
    Congrats to HR!!! I mean the consultants that HR is outsourced to!!!!

    Soon JNJ will be just another MEDIOCRE POS company!!!

    Corporations are people (LOL loser Mitt)... and ours will be mediocre like all the others!!!!
     
  11. Anonymous

    Anonymous Guest

    They already are!
     
  12. Anonymous

    Anonymous Guest

    ---------------
    In simple terms retirees will pay about 60-80% of all preimium increases. JNJ portion will be limited to CPI not medical/healthcare inflation. Translation = expect to pay something like $500 to $1000 more EACH YEAR in retirement as premiums increase. Silver lining == the JNJ group rate is about $5-$10K less than what you might pay on an ACA Exchange Plan
     
  13. Anonymous

    Anonymous Guest

    Anyone out there working on the McNeil Consent Decree as a duration employee? If yes, any details of the separation package they will offer?
     
  14. Anonymous

    Anonymous Guest

    Thanks for the insight into what really changed in benefits. It is so hard to figure out from the official communication....So retiree medical is still a good deal vs. obamacare, but not as good as it used to be.
     
  15. Anonymous

    Anonymous Guest

    Don't be lulled into a false sense of security regarding the costs of those who still qualify for retiree medical. This maybe the current costs, but the plan is to increase the cost ratio overtime to push people to the exchanges until retiree medical is phased out completely. Look at the changes being made to employee compensation plans and benefit plans and you will see the trend is to continue to reduce these costs. This is being done in piece mail fashion to lessen the blow, but will continue until the value proposition to work at J&J is no different than any other organization.
     
  16. Anonymous

    Anonymous Guest

    What is the McNeil Consent Decree as a duration employee? Please explanin.
     
  17. Anonymous

    Anonymous Guest

    A duration employee is one who is brought to McNeil to work on the consent decree. You sign an agreement up front that you are a duration employee and your "assignment" will end on XXXX date, such as Dec 31, 2014. Most are set up with this timing. The CD is scheduled to finish end of 2014. My limited information indicates a duration employee who is not placed into another job or extended will be offered a separation package - severance plan included (2 weeks pay for every service year). You qualify for executive bonus if you are employed after Oct 1. My concern is McNeil will look for some way to shift the terms in their favor and we duration folks will get screwed.
     
  18. Anonymous

    Anonymous Guest

    Is the CD ending at the end of 2014? What does this mean? Will they have an approved facility and be able to ship products before FDA approval?
     
  19. Anonymous

    Anonymous Guest

    Anyone know who the lay offs will affect?
    I heard lay offs in consumer and possibly across the board. Any truth to this or is this rumour just a product of what's been ingrained in our psyches... the closer we get to Thanksgiving the more likely that there will be a "culling" of employees.
    This has become a Thanksgiving Tradition at JNJ...like the Macy's Day Parade, football and turkey.
     
  20. Anonymous

    Anonymous Guest

    Of course there will be layoffs. This is J&J! And although this is the time of year when we typically see large scale layoffs, the truth of the matter is that J&J is on a mission to dramaticallly cut costs in every sector and across all functions, with particular focus on non-revenue earning functions. Just wait until the full impact of the ESP initiative hits and you will see the workforce in HR, Finance, IT, and other support fuctions dwindle to a fraction of their current size. Services from these organizations will get even worse and morale will continue to plumett. People with marketable skills are already starting to leave and unforutnately, the most talented leave first. Welcome to the new J&J!