The Aerospace Corporation

Source: AARP.org | August 30, 2006

Winning years: 2007, 2006, 2005, 2003, 2002
Industry: Not for profit
Location: El Segundo, CA
URL: www.aero.org

Highlights of 2007 Winning Strategies

The Aerospace Corporation has a phased retirement program that allows employees the option to work part time before retirement, take a leave of absence for up to one year before retirement, or retire and rehire as a "retiree casual." The "retirees casual" are allowed to work up to 1000 hours per year at the same salary they had before they retired.

Additional Policies and Practices

• Workplace Culture/Continued Opportunities: Aerospace offers full- and part-time employees (working 20+ hours per week) the following learning and development programs: tuition reimbursement, in-house classroom training, and on-line training. In the past 12 months, 77 percent of the company's employees took part in at least one of these training opportunities with an average of 57 training hours. The Aerospace Institute offers a broad curriculum of education, development, and training programs. Employees have opportunities to develop new skills with temporary assignments, team projects, and job rotations, which can last for one year. Special accommodations are given to employees with special needs, including the ergonomics department setting up a home office for an employee with Lou Gehrig's disease.
• Benefits/Health: Full- and part-time employees (working 20+ hrs/week) receive individual and family medical coverage, individual and family prescription drug coverage, individual and family vision and dental insurance, as well as short- and long-term disability. Health benefits for retirees pre-65 and 65+ include individual as well as spouse medical and drug coverage, dental insurance and EAP services. Retirees pre-65 also receive individual life insurance or other death benefit coverage. New hires are eligible for all of these benefits upon retirement. The company offers an FSA plan to employees to cover their out-of-pocket healthcare costs.
• Benefits/Financial: Aerospace offers a defined benefit plan, a 403(b) retirement savings plan, as well as a money purchase defined contribution plan to its full- and part-time employees. The company encourages employees to participate in the 403(b) plan by offering all new hires the opportunity to automatically enroll in the plan, employees may choose to invest in lifecycle funds, and employees 50+ can make catch-up contributions. Employees receive financial planning information from the financial services firm that administers their 403(b) and from external financial planning experts not associated with the 403(b). Financial planning/pre-retirement workshops are conducted. The company offers paid time off for caregiving, short-term time off without pay as well as long-term leaves of absence without pay to allow for caregiving. Full- and part-time employees are offered wellness programs such as: flu shots, weight loss programs, stress management training, and lunch and learn seminars on various health-related topics. Twenty-four percent of the company's employees have used at least one of these wellness benefits in the past 12 months. The company offers referral services to assist with childcare/care for grandchildren/eldercare to full- and part-time employees. It also provides employees with other dependent care benefits: new parent/grandparent classes, eldercare lunch and learns, and a resource and referral website for elder and childcare issues.
• Benefits/Alternative Work Arrangements: Aerospace offers the following alternative work arrangements to its full- and part-time employees: flextime, telecommuting, and a formal phased retirement program. Full-time employees can also participate in compressed work schedules and are eligible to move to part-time work on a permanent or temporary basis.
• Opportunities for Retirees: The company currently has 3,205 retirees. There is an individual with direct responsibility for retiree relations. The company connects with its retirees by communicating on a regular basis with them, inviting them to the organization's events, and formally acknowledging them on the occasion of their retirement. Retirees can take advantage of temporary work assignments and consulting/contract work.
• Age of Workforce: Fifty-one percent of Aerospace employees are 50+. The average tenure of employees age 50+ is 16 years.