Does anyone have the same dilemma? I’m a long time employee who always thought that I would reach my pension at Xerox. I have a little less than five years until I retire. If the state of the company was any better I would wait it out,but how things stand we can’t be too sure that the company will exist at that point. Any thoughts, advice?
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if your age is any where near 62 and you have 30 years, those are target numbers. before 62 your pension will be reduced if you start to collect it. if you only need 4 1/2 years say to get to 65 ride it out and you can get medicare. no companies want to hire anyone 55+, and your'e not going to get anywhere near your current pay and vac. the grass is not greener anywhere else. most people i come across in my travels as cse aren't very happy where they are either. i'm with you i have been counting down the months. 54 and counting
https://en.wikipedia.org/wiki/Pension_Benefit_Guaranty_Corporation
You may not have a pension if Xerox goes bankrupt!
Talk to a retirement planner that has Xerox clients, understands the Xerox pension plan, the lump sum option, 401k withdrawals if you retire at age 55, and what can happen to your pension if Xerox files for bankruptcy. I retired from engineering a few years back and I couldn't believe the how much confusion there was about the Xerox Pension Plan. It is obviously still the case based on many of the responses here. I retired early and took a lump sum. For RIGP pensions, the lump sum is calculated based on your pension amount, the IRS minimum present value segment rates, and your life expectancy. I took the money and ran and 6 years later I'm still glad that I did! Get your information from a professional!
2yas— No. only if people are going to collect the pension does any possible reduction come into play. If you are leaving Xerox and working somewhere else and not collecting Xerox pension until retirement age, no need to consider staying at Xerox. Agree that people are confused about it.
Early retirement eligibility is significant for purposes of determining your formula benefit. If, after you leave Xerox, you choose to start receiving a monthly benefit before age 65, your formula benefit is subject to an early retirement reduction. You are eligible for early retirement after you have reached age 55 as an active employee and have completed 10 years of vesting service when you leave Xerox employment:
• If you leave Xerox when you are at least age 55 with 10 or more, but fewer than 30, years of vesting service,
your formula benefit is subject to an early retirement reduction, calculated from age 65.
• If you leave Xerox when you are at least age 55 with 30 or more years of vesting service, your formula benefit is subject to an early retirement reduction, calculated from age 62 instead of age 65. If you start payment at age 62 or later, your benefit will be unreduced.
• The method of computing the early retirement reduction if your formula benefit begins before age 65 (before age 62 if you leave after attaining age 55 and 30 years of vesting service) is described in more detail in Formula Benefit.
If you have at least 10, but fewer than 30, years of vesting service, your formula benefit is subject to an early retirement reduction calculated from age 65.
The benefit is reduced by 5% for each complete year and 1/12 of 5% for each month that you begin receiving benefits before your unreduced age, which is age 65 if you have fewer than 30 years of vesting service, or before age 62 if you have 30 or more years of vesting service.
Make sure you model your pension before leaving. There is incorrect information posted here.
While it's true that no new contributions have been made since 2012, your age and years of service when your leave Xerox is a factor in a possible reduction in benefits.
Had 31 years in when I left last year. Best decision ever. No stress, lost weight, having a blast doing side work when I want it. Moved all my finances away from xrx. Finances are growing health insurance is very very manageable. Loving life
Typo. http://www.xeroxbenefitsweb.com
30 years of service is absolutely a significant pension milestone, pertinent to pre-65 retirement. I don’t know why so many posts here are trying to state otherwise. Perhaps an ulterior motive?
Regardless, read your pension docs on https://xeroxbenefitsweb.com, it’s all there if you care to take the time to read it all. Pay no attention to the misleading posts here, go to the source.
That’s factual. 2012 and no matter how long you stay, pension doesn’t change other than due to market. Years of service don’t matter.
1xde: WRONG. Controls stopped at 2012. Theo my thing 30 gets you is avoidance of age penalty reduction if you retire commensurate with Xerox exit. That’s not required or advised.
do a little planning ahead. if you have a mortgage refi or ensure your payment is manageable or take some cash out to pay off any bills . healthcare is costly so apply for affordable care act you will pay a couple hundred more than your group plan there are income limits , just google for answers , save as much on hand cash as possible for transition if you want to leave . also free of credit card bills. do not live beyond your means . if you are 55 or older even if you have a loan against your 401k you will not pay the 10 percent . if you withdraw from 401k if you leave at 55 there is a 20 percent tax off the top of any withdraw of 401k . the 2 percent state tax is Not mandatory, you will have 60 days to rollover your pension part 1 and part 2 if you are eligible , ira's rules say you cannot withdraw before 59.5 without the 10percent tax but 401k you can so leave some in your 401k to pull from when you need it . keep your income low enough so you don't go into higher tax bracket , it is possible if your at least 55 when you leave if you want to avoid the 10 percent . avoid the taxman .there is no tax on any funds rolled over within 60 day decision window , do a direct rollover , do not receive a check. good luck . happy trails
One factor is how long is "long term"? If you are close to 30 years, it may be worth riding it out to 30 because the formula changes at 30 years of service. You basically get your age-67 benefit at 30 years of service at age 62. So that's 5 years of extra pension if you make it to 30. That extra amount is weighed against the chances that the lump sum option could be gone by the time you reach 30 years.
If they can find a way to mess with your pension, they will. Don’t think for a second “the pension” is not something JV is looking to change, alter or get away from altogether. My advice, take your piece of the pie now. There may not be any left at some point.
I suggest you educate yourself on how the pension works. I don’t see how you are in an either or scenario. If you are vested, you can leave with the cash value.
Look for a job ASAP and if you are blessed with another viable opportunity take it and roll over your pension immediately as a lump sum. The Xerox legacy pension is too close to the 80% funded mark.
You can take the pension but it's still a good idea to extract as much money as you can from Xerox without any regard to loyalty in either direction. If you can replace with the money with a different company fine, but until then or Xerox decides to stop paying you, take their money and put it in your pocket. Their money spends as well as any other.
My advice: begin looking aggressively now like your colleagues are. If you get an offer, take it. You will collect your pension at the age you intended to collect it. So many on here think pension amount has something to do with being employed by xerox. It does not. It varies depending on when you take it.
If you are not ready to retire, you need to find a job before you are forced to.