I am 50 and not ready for retirement yet. I am not sure if I should rollover my RIGP amount to the 401K or leave in the trust. Does anyone have any thoughts or suggestions? Leaning towards rollover due to state of the company.
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Move it to an IRA right away. If I remember correctly, once the funding goes below 80%, then you can only take a lump sum of 50% and if it goes below 60% then you cannot take a lump sum. One benefit for the people moving over to HCL is that they should be able to receive the lump sum payment.
I talked to someone who is retiring soon and he said you can move your pension money up to three months before you leave, my advice, look into it and roll your pension while the market is up, keep it safe, and leave within the three month window. You would have made out great if you did that in September 2018 and left before the gatt rate change 1/1/2019.
I left X a couple of years ago and took the lump sum. At the time Xerox was seriously under funding the Pension so it seemed risky to trust that it would really be there for long. It's easy to take it and put it into a new IRA. But.... the folks you will have to work with to get your money are difficult and will work to make it not happen. They seem to find ways to forget to process your request and even delay it so the payout will be less (and it will be down the road given the direction interest rates are headed). So be prepared to fight and work it daily until you get it out of their hands. Wish all of you the best. Once you get out of Xerox you'll feel so much better. Cheers!
Agree with the above statements. Take your pension amounts as a lump sum and roll it over into a Traditional IRA at one of the major brokerages - do a direct rollover so they do not withhold the 20% for taxes that Xerox will do otherwise (if they send you a check.) For those thinking the annuity is the way to go - your money is cumulatively worth ~3% less each year due to inflation.
With the various options for ETFs, Mutual Funds, stocks, and bonds in the major trading houses (and the free investment advice from some) you would be crazy not to do the direct rollover to something you can control in a better manner.
The rates went up. If you take your lump sum before the end of 2018 it will be about 5% more than if you take it in 2019!
Take the lump sum and roll over ASAP!
GATT rate comes out next week I believe. If it goes up, which it is expected to do, move all monies out of CBRA/RIGP ASAP and place it into either your 401K or an IRA so you control it. That is $100K advice for free. You could be a victim of another retroactive policy change.
The 2019 pension lump sum (bottom portion) rate should be available on the benefits site next week. So you can compare taking your RIGP in 2018 or 2019. As most people know, the rate is set annually based on August rates. What many people don't know is where the rate comes from. It's a US government IRS site, for the purpose of calculating pension lump sums. https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates. I've been tracking this for several years, watching to optimize my retirement date. I will take my lump sum prior to 2018 year end, because I know my "part 2" of the lump sum will drop significantly in 2019 based on increasing interest rates.
If you choose to take the lump sum and roll it over, do it asap. With rising interest rates, lump sum amounts will be reduced by about 5% next year. Talk to a financial advisor who knows the Xerox retirement process. Get expert advice. You wouldn't do your own brain surgery!
You can roll the money over yourself, without spendindg1000$. You can roll it into a bond ira until you are sure what to do with it. And if you roll it into a vanguard or fidelity ira, they will advise you for free. So save your $1000.
this is where a lot of people miss the point about rollovers. You should take all the money that is yours and roll it over into a IRA or Roth. You should meet with a financial planner for the best course of action. it may cost you about $1,000 for the advice but it will be the best $1,000 ever spent. when the money is with a financial company you can then buy any stock, mutual fund... you want. the dividends can be reinvested. you can have a well balanced portfolio work for you while starting a new 401k at a new company.
Roll it over either to your 401(k) or your own IRA because then they'll be under your control. If you leave it in the trust, you leave it in the company's control which I don't think is advisable.
I was let go last September after coming back from disabiIity. I would strongly advise taking lump sum and rolling it into an ira. I wouldnt trust those backstabbers with my hard earned pension. Neither should you.