If we file chapter 11, what happens to our pensions?
19 replies (most recent on top)
Scooped
Just look at how well retired folks from Kodak made out with their pension. Kodak went bankrupt and so did the pensions.
Took me a year and roughly 200 applications but I’m finally in the running for 2 excellent positions.
The rats are taking all the cheese!
They just scooped what was left
NO IT'S NOT!!!
Xerox Pension Security: Why There’s Really No Need to Worry
When it comes to pensions, it’s natural to wonder: Is my retirement income safe? If you’re part of the Xerox Retirement Income Guarantee Plan (RIGP), the short answer is: yes — and here’s why.
🛡️ A Strong, Single-Employer Plan (The Good Kind)
Xerox's pension is what’s called a single-employer plan, which means it’s maintained by just one company, not a hodgepodge of employers like some “multi-employer” union-style pensions. That distinction matters.
Why? Because single-employer plans are the most secure type of pension insured by the federal government’s Pension Benefit Guaranty Corporation (PBGC). The PBGC treats these plans as a safer class — and they’ve got your back.
💵 What Happens If Xerox Ever Can’t Pay?
If the plan were ever to falter (which it hasn’t — and it’s currently well-funded), the PBGC steps in to pay your benefit — and for most people, that would mean no reduction at all.
For 2025, the PBGC covers up to $73,860/year for a 65-year-old retiree. That’s a lot. In fact, you’d have to be a top Xerox executive to exceed that level of pension income.
To put it in perspective: if you’re considering a lump sum instead of monthly payments, the PBGC’s 2025 coverage would be equivalent to roughly $1.6 million. So unless your lump sum is more than that (very rare), you’re covered. Fully.
🔍 What Should You Really Worry About?
Truth is, this pension is not something to lose sleep over. There’s more risk in:
Losing your job before retirement
Not saving enough outside the pension
Or trying to time the markets in your 401(k)
The Xerox pension is backed by the company and by the U.S. government. That’s a level of security most retirement income sources can’t claim.
✅ Bottom Line
Xerox’s pension is safe, well-funded, and federally backed.
If something ever went wrong, Uncle Sam pays you.
Unless you’re retiring with a pension of more than $74K/year, you’re fully protected.
Life and investing come with risks. But this? This is one of the least risky parts of your retirement plan.
Down the drain we go
Guarantees mean nothing in the new world of Trump..Xerox can’t be trusted to
abide by anything ..
See details of limits here:
https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee
No pension for you!
They scooped it.
Xerox doesn’t offer a pension
Xerox offers Tension
How does this apply to Canada?
Also, they will never put another penny into it again, and after recent market activity it’s probably less than 80%. Count on a bit less than you were expecting like the other poster said.
The money to pay your pension is set aside in another company, however, if it is not enough (reported to be 80% at this point), the fed guarantees up to a certain amount. Having said that, many other creditors will be clamoring to get paid and the law has been twisted all sorts of ways in recent years. Feel better though because you can be sure Steve and crew will get paid. I still don’t get why mid senior longer term employees are still there watching their stock comp disappearing and pensions become riskier while waiting to get fired.
Regardless whatever the amount you are to receive you can bet that Xerox sc--wed you somehow …
the pension is protected by the The Pension Benefit Guaranty Corporation but I believe the way the PBGC calculates benefits differs from the way Xerox calculates benefits so the monthly annuity will be less. I looked at once, I think there would be a 10-15% haircut. In addition, the PBGC does not offer a cash options, we are currently allowed to take 50% in cash, the PBGC would only allow a 100% annuity option. There are also maximum guaranties depending on your age.
It depends on whether they’ve funded the pension. The lawyers will negotiate with all the debtors, one of which is pension fund. The pension most certainly will be lower than expected.