If you stay you cannot touch it. I started the process to take mine out within the hour that I gave my notice. And within 2 days of official end date I had the check and gave it to my CFP. Do not wait if you’ve retired or left. It’s YOUR money and is vulnerable right now.
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If your still working you can't do anything till you leave the company anyway. Either retire or get layed off . The payout is dependent on a formula they use and interest rates at the time you take it. You can go on the benefits site and calculate different scenarios. When you lake the lump sum then your off the company books forever. I would suggest you research further before making any decision. There can be tax implications also. Good luck.
If you have a TRA portion to your RIGP, May or June will be an excellent time to roll over your RIGP to an IRA. The lower the interest rates on this chart, the higher your payout will be. JV changed the policy so instead of once a year fixed rate, pension rollovers are calculated on the month rate prior.
If you don't have a financial advisor investigate one of the low cost major players like Vanguard or Charles Schwab. That's what I did, and it's better than rolling it over into a money market IRA. Then you won't have to worry about the 80% funding!
https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates
The cash option is there for another 12 months at least. People tend to forget that as cash is withdrawn, the liability also declines on a pro rata basis, i.e. if its 90% funded, and someone takes out $1m, it's still 90% funded. Interest rates and investment results have a larger impact on the fund than withdrawals.
Take the full lump sum and roll it over into a IRA or qualified plan with a trusted financial consultant. You can make more than what you would get, especially with the excess.
From Pension & Benefits on March 2, 2020, just be aware that this news story came out before Covid-19 had really begun the mess things up.
"Xerox Corp., Norwalk, Conn., expects to contribute $135 million to its global pension plans in 2020, according to a 10-K filing with the Securities and Exchange Commission.
The amount includes $25 million to its U.S. plans and $110 million to its non-U.S. plans.
The firm contributed $141 million to its plans in 2019, including $26 million to its U.S. plans and $115 million to its non-U.S. plans, according to the Feb. 28 regulatory filing.
Xerox had $2.5 billion in U.S. plan assets as of Dec. 31 and a benefit obligation of $3.6 billion, giving it a funded status of 69.4%, down from 75% the year before. Meanwhile, its non-U.S. plans had $6.4 billion during the same period, with $6.5 billion in benefit obligations, giving it a funded status of 98.5%, down from 95% a year earlier.”
Those holding on for a bit more assume that the money will be protected by the rule of law in the event of Xerox's financial collapse. Given the instability of the country, and the world in general, I would withdraw what you are owed as soon as possible. I did. The rule of law cannot be trusted these days, especially where Xerox is concerned. May God bless you all, and keep you safe.
Since there has been no formal announcement to the contrary, I can only assume that the lump sum option for RIGP is still available. "Is it a gamble to wait?" Absolutely. The gamble is if you wait a little longer the lump sum balance does increase over time (approx 5-6% per year, excluding the effect of interest rates fluctuations). However, just like a typical bank, if there is a "run" of lump sum withdrawls from employees that forces that funding level below 80% then Xerox will immediately curtail full RIGP withdrawls. It could be restored once Xerox infuses more cash into RIGP, typically done on an annual basis. However with the state of the business at the moment and the recent financial disclosure of YOY quarterly profit decline of 63%, it is not out of the realm of possibilities that senior execs may elect to defer funding and preserve cash to maintain solvency.
If I was an reputable financial planner, I'd advise taking the lump sum option no later than June 5th, 2020.
I've never been able to find this information except once a year in the annual report. The longer you wait, the less chance it will be funded at 80% (is that the number?) required for lump sum option.
Once that is gone, you'll have an option for either annuity or a partial lump with annuity. Some prefer the annuity, but I like the option for full lump sum.