Sort of a combination of the two. I was planning on retiring at the end of August, but my group lost our contract renewal. I would have to find an internal position for 3 months, which is possible, but I'll actually make out better by taking the termination, collecting the severance pay, and then "officially" retiring at the end of August. This has nothing to do with the rumored HP layoffs. My particular internal organization is all cost-plus billing (mostly government contracts), so it would cost the company money to have layoffs in our group.
Good strategy on the termination approach.