Retirees just received a letter today stating that their health insurance, $400 HRA contribution and Employee only life insurance will be canceled effective 12-31-18. (Those under the "NEW PLAN" Policy). My question is is the company that desperate that every cost is being pulled from the company to survive, or, is the company simply slashing as much as possible to prepare for sale.
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The "Benefit Allowance" is what is ending 12/31/18. It was the program that if you were 55 with 10 years of service, would bridge part of your medical expenses from 55 to 65 ; it also covered your spouse. For my wife and I it amounted to about $62,000 over the 10 year period.
It has little to do with desperation. I am going to go out on a limb here and state: if the 3rd quarter results are so bad the stock price drops significantly one with money burning a whole in the pocket I would buy all I can afford. Because that is when either FujiFilm or HP (or company with a similar agenda) will make an offer.
I think they stopped offering it in 2010. Retiree's prior to that were on a plan.
Xerox leadership cares about 1 thing, (free) cash as it makes the company more attractive to the Street and potential buyers. Investing in retiree health insurance does not generate any cash.
Was Xerox still paying for retiree life insurance? I thought they stopped in 2010?