WOW, so all the people in the "know" grab the lump sum pension and run for the hills. No notice, no warning, no heads up for the rest of us. Is that even legal. Even if it is, that is morally bankrupt. Transparent my a$$!
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they are looking for ways to scoop the whole thing. time to get out now with something.
Reduced annuity with survivorship is also gone. Survivor benefit is now 50% of annuity.
Today’s Xerox never does things to benefit its workers . Definitely not the company that was based on the value of the employee as “our greatest asset .”
When you take the money and run, you have the money. If you die early, your spouse and family have the money. You can take a reduced pension, and protect your spouse. It all depends on your personal situation. At least it was good when you had options. Sadly, some of those options are gone.
Higher interest rates do reduce the present cash value but provide a safe predictable way to invest that cash. It's really a zero sum game. You earn the annuity, not the PV of the annuity. If you take the cash (or 50% now) its up to you to set up and manage the income from it. Some just don't want to be bothered, or don't think they can beat the annuity on their own.
As interest rates go up, the cash value of an annuity goes down. There was a time when interest rates were near zero, so the cash out was huge. Something like $40k annual pension was worth over $1 million in cash.
Now that interest are surging because Biden likes inflation, getting that $40k pension costs under $400k in cash. Not worthless, but not as good as the dark economic days.
IRS Minimum Present Value Segment Rates have been going up significantly since the fall of 2020. The changes in rates would have severely reduced the lump sum value if it was taken in 2024 vs 2020 even though there were 4 additional years of service. The lump sum is simply the amount of money that it would take to fund the pension at the interest rates at the time of the individual's retirement for his or her life expectancy. Higher interest rates result in a lower lump sum. If I had the choice, at the current rates, I would probably take the pension, and hope that I didn't get run over by a bus.
good point, why were senior people let go in Jan vs feb 29. didnt even think they were doing favors while sc--wing everyone else. one shady thing after another
There were select people exited and/or “laid off” in the company in Jan. It was odd timing!?. Then lump sum changed backward 30 days as announced on March 1. Not a coincidence that some were laid off in January before Feb1 and not on February 29.
Your comment is why we have asked if any people have gotten together and started legal proceedings against the company: civil suit.
"The current lump sum was probably not worth much anyway"
Ridiculous statement. You clearly unfamiliar with math and present value of an annuity calcs.
There was nobody "in the know".
The current lump sum was probably not worth much anyway. You would have had to take it a couple of years ago to get a decent payout. The amount of the lump sum payments are based on stated interest rates published by the IRS and those interest rates have increased over the past couple of years making the payouts significantly less. Nonetheless, it is sad that the option is gone for people.
The writing is on the wall but people still choose to stay even though there is a great big world out there. Xerox is not a fraction of what it used to be and will never be the same.
It might not be fair to you but welcome to the free market. Hope you are a totally and perpetually Rational Actor.
Best part of leaving Xerox was the lump sum option
This post is BS. Cry bc you didn't watch the h-nhouse and the fox broke in. Tough ti_s
Horrible, and those who weren't in the know are screewwweeed big time and most of them had been with the Big X for many many many years. The overall end of X is near . . .wonder if there will be a lawsuit for this Cr-ppy Pension practice. Blame it on Sanjay for putting in writing and mailing it March 1st in order to get a lump sum the paperwork needed to be submitted by end of January when most didn't know they were getting axed then. Bankrupt, morally, spiritually. Bad things come to bad people.