I quit / retired in 2024 after 38 years due to tge new management - or more aptly mis-management. I could only take 50% of my RIGP pension as a lump sum to move to my professionally managed IRA and now get a monthly check for the balance that only has spousal survivor benefits. Anyone still employed at Xerox that has this pension should leave NOW before Chapter 11 filing or they stand to lose this money. Current funding is 66% per a notice I got in late March. Take it or lose it.
30 replies (most recent on top)
@w5 OK Mr. Scooped.
Wrong, they're both gone
Do you dipsh-ts know there are at least 2 pension plans in the US? The RIGP1 cannot be touched, the ERIGP is on the XRX books and the participants can lose it. You are all confusing the 2.
Your understanding is wrong.
It’s my understanding that the pension and other benefits listed in investor and 10K documents are ongoing (future) required payments under the current plan. These must be paid unless the company goes through legal hoops (chapter 11) to be released.
@kz you should really educate yourself on this topic. Get informed on the subject matter before posting.
You're neighbor can use your checking account to pay his electric bill. It's called theft - exactly what xrx did when they scooped the RIGP funds. Get a clue...
@km You people are seriously uninformed. That is not from RIGP1. For the 1000th time, and notwithstanding Scoop Man, Xerox cannot touch the funds already in the trust. It does not belong to them. For the simpletons here, it's the same thing as saying I hope my neighbor doesn't use my checking account to pay his electric bill. Not a thing.
Did everyone forget that X showed the pension as cash on the books about two years ago and continues to do so?
STOP IT!!! The pension has already been scooped!
By the looks of this dialog, it's no wonder why this company is in the sh----r.
@c3 you are the one who is misinformed, and probably a bit slow.
@ca That's ok that you are misinformed, just know that those of us in the know know what the details are with what happened with the old rigp program.
@c3 You should try doing some real research. Ditto to the fools who gave you a thumbs up.
@ab I took lump sum in late 2019 and invested in the very early timeframe and it has served me well way better than any XRX returns).
@c2 the pension g fund calcs pension payouts differently than Xerox and most other companies. It would be less in many cases
@OP Very unintelligent post. Funding is at 76%. Even if the company goes belly up, the pension fund is guaranteed in the U.S. by the PBGC up to $7,101.95 per month. PER MONTH. Nobody on this board is in line for that amount. Europe is 100% guaranteed and in fact over funded. Not sure about Canada.
@a8 The 76% cannot be reprioritized by a bankruptcy court. It is not in XRX hands. It is in a trust.
@a2 There is no "accrued" vacation with unlimited PTO, regardless of solvency.
Too late, it's been scooped.
There cant be many left with RIGP
(The “old” retirement income guarantee plan)
I believe that the cutoff was gor hires made prior to some time in 1987.
Let ‘ em stay and just loose everything
As they don’t listen to anyone at all.
With all due respect to @OP, this post is not entirely accurate. If you are not sure, then you should consult with a professional. Everyone's financial situation is not the same. You should consider that the US RIGP pension is protected by the PBGC (assuming it stays solvent) up to $5,532/month joint with 50% survival for 62 year old. Since the funding is now around 76%, and under the 80% threshold, the post is correct that you can only take up to 50% as a lump sum. However, at today's higher interest rates the lump sums are way down. You need to do an IRR, consider longevity expectations for you and your spouse, other retirement income sources, the hurdle rate (yearly annuity income divided by lump sum) and decide if you can reproduce the income provided by the annuity every year if you think you have a reasonably long life ahead.
@a2 Why do you think they moved to “unlimited” PTO?
@a8 yes you could risk being forced to 100% annuity. But the assets are protected through the us pension guaranty corporation.
That said, when I left, I took 100% and rolled into my own accounts.
@a5 not true. Current employees risk pension being either 100% annuity with only spousal survivor benefits OR I believe a Chapter 11 judge could prioritize debt payoff above whatever “guaranteed” RIGP pension is currently funded. Very risky bet to stay if you can leave / retire and pull the 50% cash out to reinvest in IRAs that actually are providing great returns is invested wisely.
@a2 out of luck unfortunately. They knew what the were doing....
The pension is guaranteed by an insurance fund, they can't scoop it.
If X files Chapter 11, do you know if we get paid vacation accrued since we have moved to the new flex time off plan or just out of luck?