Thoughts on pulling out your pension as a lump? I know this doesn’t apply to many. But thoughts on this- XRX goes bankrupt, pensions go to The guarantee fund, but with what’s happening now there could be a run on that. Getting out now seems safer than waiting for an annuity stream.
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Pull your money out Xerox when possible. Why would you want to keep your money with this Xerox unless you think they can manage it better than you.
If pension funding falls below 80%, full lump sum option goes away.
If XRX goes bankrupt or does other sneaky tricks with pension and PBGC kicks in: some get full pension. Others get a percentage-these are those with larger pensions.
If above AND PBGC goes insolvent, a federal bailout would be needed to get anything at all. If trump is in power that bailout seems unlikely, as business is favored over individuals and we are about to spend a trillion on a corona bailout.
OP, I'm asking the same questions. For me, the key question is what happens if PBGC becomes insolvent (I'm assuming the worst case that Xerox eventually declares bankruptcy). In that case, we would get only a fraction of the promised benefit. Congress would need to step-in and if the economy is in shambles, I don't think rescuing PBGC would get much attention. Wish I had a crystal ball.
@wpe: with 7 billion people in the world and 20% of those get infected, that’s 1.4B infected. Now take a 1% death rate and that’s 14 million deaths.
Now consider that experts suggest the infect rate is likely as high as 60%, and death rate is at least 2%. Now the math gives 84 million dead.
I see your point, but you need to get beyond the 10,000 number. Something might change the trajectory we are on, but people are scared because of these types of numbers. And the US markets are scared because US hospitals are not equipped for this.
To the gentleman who feels that "10,000 people dying" isn't a big problem.
you really need to educate yourself on the real concern that this pandemic has the potential to k–l tens of millions, it just does. You haven't done your research, and if you were 20 years old, you wold probably be on a beach in Miami claiming there is no problem.
The WHO and CDC are not just chumps you can't rely on, they are dealing with facts.
I say this with respect,
Please don't spread your views without educating yourself.
You may find yourself losing someone close to you.
Mine is moved as of Today to My IRA which went into a Money Market until the Market gets back to normal.
1st quarter results will k–l Xerox, they can only lie for so long, take your money and head for the hills, if you are 55 or older with 30+ years there is no reason to stay, there are plenty of jobs out there, you might stay cause it is easy work , but you are not doing yourself any favors, word to the wise!
The moment I left I got it out. I was not going to leave that huge pile of money to them to manage/lose/defund for me. Get out and get your pension out. In general the company was in massive trouble before all of this. Even more so now.
@wpe: Time to get your head out of the sand. Current numbers are a lagging indicator of things to come. To see why, take a few minutes and watch youtu.be/mCa0JXEwDEk. Do you really think hospitals are erecting tents for overflow testing/beds, and military hospital ships are being deployed outside major cities, because there is NOT a real crisis?
Definitely a concern. The lump sum amount also does decline after age 62 due the life expectancy factor in the calc.
Interestingly, if you have already left Xerox, you do have the freedom of cashing out your pension as a lump sum. The ultra low interest rates have artificially inflated the pension valuation. So there has NEVER been a better time to cash out. On the other hand, if you're still employed at Xerox, you are precluded from accessing your pension. So ironically, the folks that are still employed are the ones that risk losing this "lump sum" option. That's because as the economy wanes, revenues continue their decline and Xerox stock drops to historical lows, Xerox could elect to under-fund the pension plan (and preserve cash). The effect of breaching the 80% funding level would result in the elimination of the lump sum option (or just a partial lump sum with annuity hybrid).
I'd be really concerned if I were still employed there and unable to retire very soon.
Financing assists +3.7 Billion
Core and financing debt -4.3 Billion
Cash +2.8 Billion
Net +2.2 Billion
Pension $1.2B (net unfunded status as of 12/31/19)
• ~$815M of the $1.2B net unfunded is attributable to
certain plans that do not require funding
• Overall net global funded status of ~88%
- I'm not sure what the 815M not being funding because of "certain plans" means
Everyone just needs to freaking relax!!! All of this unnecessary panic is literally making a mountain out of a molehill. This is not the bubonic plague. There are 7 billion people who live on this planet- keep it in perspective. A fraction of a fraction of a fraction of the world’s population has this. I am all for reasonable containment but having a global depression over 10,000 dying??? Come on!
With the stock and bond markets imploding like they are, it makes me wonder how "safe" any insurance company is since they depend on the returns from stocks & bonds to pay their claims and annuities.
I'd rather take the lump sum and roll it over into an IRA. At least that way most or all of it would be guaranteed by the US gov. I don't believe there's any sort of guarantee if an insurance company goes under and annuities can't be paid.
[Not a Financial advisor]