8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Sep 4, 2009)

Filed September 4, 2009For Securities:AEE

Summary

Ameren Corporation (AEE) has announced a voluntary separation election program for approximately 350 management employees aged 58 or older as of December 31, 2009. This initiative is part of the company's broader efforts to reduce operations and maintenance expenses, as previously discussed in its June 30, 2009 10-Q filing. The program aims to control costs across all of Ameren's subsidiaries. The company anticipates recording an unusual charge to earnings in 2009 related to this program, potentially up to $30 million if all eligible employees participate. Following the voluntary program, Ameren may implement a targeted involuntary separation program, depending on participation levels and other business considerations. The exact financial impact on Ameren's results of operations and financial position will be determined once the number and roles of departing employees are finalized.

Key Highlights

  • 1Ameren Corporation is implementing a voluntary separation program for about 350 eligible management employees (age 58+ as of Dec 31, 2009).
  • 2The program is a cost-containment measure focused on reducing operations and maintenance expenses.
  • 3Employees have until October 22, 2009, to elect the separation offer, with departures expected by November 1, 2009.
  • 4Ameren expects to record an unusual charge to earnings in 2009 related to this program, potentially up to $30 million.
  • 5A targeted involuntary separation program may follow, contingent on the voluntary program's participation and business needs.
  • 6The program applies to eligible management employees across Ameren's subsidiaries, including UE, CIPS, Genco, CILCORP, CILCO, and IP.
  • 7The full financial impact is not yet determinable and depends on the final number of employees participating.

Frequently Asked Questions

The primary purpose is to announce Ameren Corporation's voluntary separation election program designed to reduce operations and maintenance expenses by offering eligible management employees an opportunity to leave the company with severance benefits.

Ameren expects to record an unusual charge to earnings in 2009 related to this program. The charge could be as high as $30 million if all eligible employees accept the offer. The final impact will depend on the actual number of participants.

Following the voluntary separation program, Ameren may pursue a targeted involuntary employee separation program. The decision to implement an involuntary program will depend on the participation rate in the voluntary program and other business factors.

The program is offered to approximately 350 management employees (excluding senior executive officers) who are 58 years of age or older as of December 31, 2009, across all of Ameren's subsidiaries.