QUESTION

What is a company required to disclose during an ERO? I feel that my retirement plan has been invalidated. Do I have a valid grievance?

Asked on Nov 16th, 2012 on Employment Contracts - Michigan
More details to this question:
I have been employed 18 years by Company A which provides contracted IT services to Company B. Company B publicly announces that it has decided to stop outsourcing IT services and move instead to an in sourcing model. Company A announces looming companywide cuts and issues an ERO but does not disclose that it is already negotiating with Company B to transition in employees. Since I qualify for the ERO, I read the distributed material and follow the online decision making processes. Based upon the information I choose to not accept the ERO since I am not actually ready to retire and I was not notified that my job was in jeopardy. After the ERO offer expires, Company A announces that an Employee transition agreement has been worked out with Company B. The agreement provides no consideration for prior service year credits with regards to future retirement offers. We are also informed that if we refuse the transition offer we are considered a voluntary separation with no severance..
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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As a general matter, an employer must deal with its employers in good faith. Your employer's failure to disclose a material fact regarding your election to accept or reject its early retirement offer may be actionable. My suggestion is that you consult with an attorney who specializes in employment and ERISA matters to discuss the specific facts of the situation. Good luck.
Answered on Nov 16th, 2012 at 10:27 AM

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