The company should have a standard retirement policy in place.  I have heard lately of many people being terminated, but companies allowing it to be called retirement so the employee can "save face".

If this is actually a termination or lay-off (instead of a retirement), then the norm in my area for fairly large companies has been 1 week severance pay for every year of service, assistance in new job search, and I believe, depending on company size, COBRA (medical insurance) for 18 months, if needed. The company doesn't pay for the medical insurance, you are just allowed to continue it at full cost which is usually a lot more than what you paid through the company while employed. I recently had 2 close friends and a close family member laid-off from their jobs (in 2 different midwest cities) and their pkgs were almost identical. One had been at their job 24 years; one over 25 years, and the other 20 years. A privately-held company I know of actually gave 2 weeks severance pay for every year of service up to 1 year's pay.

Hope this helps.