For most Xerox employees, there can be 2 sums one is RIGP amount the other is referred to as “Excess Benefit”. The total of the 2 is your total benefit.
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Yes, I too was thinking the $48K was way off. I think somebody made a mistake, either in giving out numbers or a misunderstanding. All this information should be online when you login, you can see the different payout options.
In response to the first reply.......I just ran a lump sum calculator for a monthly pension of $1700 for a 60 year old male at current IRS min present value interest rates. The resulting lump sum is $306,000! Talk to a financial advisor and an attorney if they only offered you $48k for a lump sum settlement!
At the end of 2019 Q1 it was approximately 81.18% funded, too close for my comfort so I retired in Q2 this year. Keep in mind that that since March 31st, the majority of employees who were transitioned to HCL, in addition to anyone who left Xerox (retired, laid off, or left for jobs outside of Xerox) and we’re pension eligible withdrew their pensions in a lump Doewould estimate that it could be getting very close to the 80% mark in 2019.
There was a letter that came out either the end of last year or the beginning of 2019 that they were changing the calculations. But I was working in the financial sector before I left Xerox and companies with pensions are clamoring to get their employees to opt for the lump sum option so they are not on the hook for lifetime payouts. If you're one of those people that is great with investing your own money and you can come up with some other lifetime income stream in case you live to 100, more power to you.
I bailed out of Xerox a few years ago, after > 27 years of being there. Grab the lump some and take control of it yourself and put it in your own IRA or whatever. But be prepared to fight with the Xerox Benefits Center. Took me a long time to get my $$ out, and not the lower amount they were hoping to pay by delaying another 9 months. I had to call every other day for months to get what was legally due to me.
The good news is once you are out and cut the cord....life is amazing wonderful.
Wishing The Best to All
If I recall correctly, once the RIGP funding level falls below the 80% threshold, Xerox has 6 months to notify both PBGC and the plan participants of such which triggers the first step in the forced removal of the lump-sum annuity option. If Xerox leadership does not make another contribution to the plan in 2019, I would expect the 80% to be breached by no later than Q1 2020. That puts the loss of the lump-sum option towards the end of 2020.
Of course, this is just my best guess based on the same rumor mill everyone here listens to.
What I do know is that Xerox may no contribution to date in 2019 and does not plan to (noted in the investors’ presentation from January), Icahn hates pension plan has a bad history with them (TWA) and was furious about the prior leadership team’s decision to invest $500M into RIGP at the end of 2017 and his lawyers looked into trying to pull back that investment; but, could not.
Interesting question. Last I heard they were 82% actual and 87% projected rate of funding. But here is something to think about. I was offered $48K as a lump sum or $1,700 a month annuity. That means the lump sum was only worth 2.4 years of the annuity. Just something to think about.