Say good by to the lump sum rollover! Here is the comment out from the frequently asked questions from to days announcement.... Although Xerox will make all required 2024 minimum contributions to the U.S. Retirement Income Guarantee Plan, the company has decided that discretionary contributions will not be made at this time. This action will result in reduced pension plan funding levels, which may affect the pension benefit distribution format for eligible U.S. participants.
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• Hired 1987. Released Feb 29, 2024. Requested RIGP distribution March 1st 2024. Received 50% lump sum rollover after 12 weeks, Received the annuity portion after 14 weeks. Looks like the RIGP distribution is going OK now after 14 weeks. Initially, I was upset about the 50% lump sum restriction but hey what can I do except be grateful that I still have a pension. Hopefully, this process will go faster now.
• As announced, Xerox decided only do pension contribution to meet minimum requirements and not to do discretionary pension contribution. This resulted in the funding level goes below 80% and IRS rules restricted the lump sum option to 50%. It would not be a huge surprise if Xerox decided to repeat the action for 2025 and potentially further reduce the funding level. If the funding level goes below 60%, no lump sum rollover is allowed. Would Xerox do this again? Why not - what difference does it make? Many current employees are already upset AND not a large population of these employees are left anyway. Xerox desperately needs to save cash to fund the dividends.
The best part for me when I left XRX was the lump sum option.
Yep! Rolled that lump sum right out of there very first thing. Back then I never had to speak to Sanjay and it was a quick pleasant phone call.
Been doing just fine parked in a SP500 index fund.
Hired Nov. 27, 1978. Retired Jan 3rd, 2024. 45yrs and 38 days. Requested TRA entitlement Mar. 3, 2024. After many calls and emails, I've ben told, "they're working on it"--"it all has to be calculated"--"you had a QDRO distribution in your divorce, (13 yrs. ago) that is holding things up." THIS WEEK BEGINS THE 6TH MONTH OF WAITING!
IS ANYBODY getting their pension distribution in a timely manner? I'm starting to think they are gonna sc--w me out of it or stall me past some legal date or deadline that allows them to do something disgusting and or nefarious to everybody still waiting.
Is anybody getting their payouts due to you?
How long did it take? Were you eventually treated fairly? Thanks for any news you may supply.
Xerox accounting of numbers has been in question for years..This is the company that corners the market on doublespeak and mirrors to report financials.
The best part for me when I left XRX was the lump sum option. Why would I want a company that drove major revenues revenues declines and reduced headcount by over 50% in last 7 years to control MY money. No thanks
Is there an explanation why the funding percentage went from 96.49% to 97.84% to 80% from '20 to '22. How did assets drop so drastically in one year ?
class action for what? nothing illegal here.
Is there a group of pensioners that have started class action suit process?
Even the financial advisors were in the dark and fear that Xerox will not stabilize this activity / hold it at ~70% through 2024. Which would allow people to get out with the 50% lump sum distribution.
But, if current mgmt breaks with tradition, the pension fund may be below 60% by end of March, and then the IRS rules forbides any lump sum.
There is a bevy of Stockholmites at the little x
Top MGMT should love them, but nope.
There's yet another sign
Pull the rip cord
Xerox deceives ‘games’ employers and you are shocked - If you talk to people who have left Xerox, I bet 75% will say that there current overall job satisfaction is better (better mgmt, pay, less stress, benefits, company financial stability and less politics). The people that stay might want to look-up Stockholm Syndrome.
This is deception. Xerox gave people the option to vrif till 31. They changed it to Jan 19 without telling anybody because they needed time to figure out how to decrease lump sums. Afraid of a run on the “bank.”
Not sufficiently funding a pension plan signals a company that is in trouble. It’s embarrassing to them. And they deceived their employees.
just another reason not to have tried to hang on "a little longer". should have bailed years ago. writing has been on the walls for years. who didn't see this coming?
cut your losses and get out now before you get nothing.
Why your Lump Sum might be bigger than 50%? If you have been in plan a longer time your TRA balance (so confusing how you have two, but, get the bigger) - and in this case being long term and having my TRA being larger (you get the FULL amount of your TRA, or 50% of the other, whichever is bigger). In my case I am fully vested with time in the pension and my Lump Sum under the new IRS rule is about 68% of what I could have gotten before the below funding rule.
This is NOT a good sign for any of us left. It is next year going to drop below 50% and you won't be able to get a lump sum (other than those with a good TRA balance like me). If you want at least 50% of lump - this is the year to leave XRX.
After 5PM, Thursday, Feb 29th, 100% lump sum has been discontinued because funding of the pension has fallen below 80%. There is a 50% lump sum option, with lower annuity payments. The math doesn't seem to quite work out to 50% of the previous lump sum amount (two weeks ago), so there is some suspicion that we're being gamed here as there is no supporting data that would explain the new 1/2 distribution and the annuity
Ouch!
From the new benefits-web calculator: "Since the funded status of RIGP has fallen below 80% as of December 1, 2023, all Lump Sum Forms of Payment with valuation dates
on or after March 1, 2024 are subject to a 50% restriction by the IRS. The IRS benefit restriction does not change the amounts of your
benefit, but does limit the amount of your benefit that may be elected as a Lump Sum Form of Payment."
Yuck.