Does anyone know any information if Xerox will fund the RIGP to at least the 60% level in 2025 so those still in can get at least the 50% lump sum option?
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Good chance they will not fund above 60% on purpose so there will be no lump sum option. Then like last year they IRIF this month. Right now we are all under the new funding restrictions when released in about 30 days. Then those that are gone can't take any lump sum which is preferable for the pension.
Guys brain has been scooped out
It's going to 0% - scooped.
Funding the pension into the 60% xx percent range was not a good look. especially after being well into the 90's%. Investors look at that as kicking the can down the road, the money is still owed. It could have been funded, but we bought Lexmark instead, how rich did Xerox make a lot of Lemarkers with that? A lot of GOOD people have bailed because management has not given any assurances about the funding, many are worried it could dip below 60%.
Xerox legally has a minimum funding to the pension.
Xerox stopped volunteer excess contributions
Xerox pays higher premiums for being under 80% funded
Most likely continue with minimum required amount
Scoop guy is awesome!
and if it's scooped, it's still scooped.
Also, understand the rest of the math. If the fund is truly at 100%, and 20 people retire, it is still at 100%.
XRX will never put another dollar into the fund. It can earn its way back though.
Benefit and then what? Those funds need to go somewhere to generate income. If you are old, the stock market is not for you. It’s a mathematical wash that feels good on day one.
The fortunate group of retirees and IRIFed employees were ones that had left prior to 2022. That's when interest rates plumbed historic lows resulting in RIGP valuations reaching all-time highs. They were also able to fully cash out of RIGP (100%) and almost immediately invest in IRA CDs paying 5-6% as quarterly inflation rates began to soar up to 9%+.
The employees that remained behind have been punished with lower RIGP valuations and restricted cashout options. Although I don't foresee Xerox increasing their RIGP funding levels (restoring 100% lump sum payouts), you may benefit from a return to lower interest rates and higher RIGP valuations in the years to come. I predict a favorable "window of opportunity" to those expecting retire in the next 2-4 years.
It’s 6 of one, half dozen of the other. High interest rates push down the cash value, but at the same time, provide a safe, predictable, decent ROI if you do take the cash. I tripled what my pension would have been this year, but this was an unusually good year.
For the few that are left, with the interest rates where they are, the pension may be the best choice. Check with a retirement expert. Even when/if Xerox goes under, your pension may be PBRC protected. Check with a professional.
The best thing I did was to get out when I could receive 100% lump sum
Mentors grabbing their parachute and heading for the door
“XEROX SERVICE!!!!”
Hey, scoop guy is back.
nope - it got scooped.
Some factors to consider are the cost of the additional premium they have to pay due to underfunding for PBGC insurance. If that is less than what they have to pay to get it back to full funding status (greater than 80%), then they will probably continue to play the accounting game when its between 60% to 80% funded. They will also have to consider tax deductions for funding the pension plan.
If the investment returns from the money in the plan are more than what is paid out, then the difference can result in a plan balance increase towards the 80% funded status. If the company injects a few more $ to get it back to fully funded, then that and the added tax deductions might be preferrable to paying the additional PBGC underfunded variable premium.
They are required to file the ERISA 5500 form for the RIGP plan in October. The numbers reported are a lookback to the previous calendar year.
https://www.pbgc.gov/prac/prem/premium-rates
Also, this information is not shared willingly as evidenced by last years surprise. See if you can decipher the statement they send out.
My guess is the nitwits running the company today will never put in another penny. That doesn’t mean it won’t be at 60% though, or even higher.