Isn’t it great that they can decide before end of the year to not match 401k. Letter went out due to rising costs of healthcare which they’ll cover, they needed to cut benefits in other areas. At the same time need to make tough decisions in other areas we know what that means.
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Unfortunately, the IRS does allow companies to defer or even cancel the 401K match and folks are right in that delaying the match to year-end is a trick to allow companies to reduce costs because the ‘forfeited’ match amounts for employee who left before the match was awarded can then be applied to 401K plan fees and contributions. That said, it does take about 3 months to file the necessary paperwork to do so, so this move has been brewing for a while now.
It’s a steaming pile of stuff that they are cancelling the 401K match in 2020 due to health insurance costs. Due to Covid-19, health insurance cost inflation this year is projected to be between -5% and 5% with an average of 0% as no one is going to the doctor’s right now (we’ll pay for that once we are past Covid-19). Even with Xerox’s older population compared to other companies, I bet our costs increase will be around 5% this year. The reason why HR said it is going to maintain the employee costs this year (note, they did not say dependent costs), is because their contribution is already near the bottom of what the IRS allows and any further reduction could result in penalties.
This is simply a play to save more cash, which the company will continued to spend on dividends and stock buybacks that primarily benefit the C-Suite and major shareholders, i.e. Icahn. Ditto for what the company has done with the Federal relieve dollars. It’s disgusting.
Plus, if Xerox is doing this with the 401K plan, it’s safe to assume that Xerox will not spend a cent on RIGP this year.
Outside of our costs, the Xerox is not going be saved with ‘investments’ in AI and 3D printing tech. While many companies temporarily suspended their 401K match earlier in 2020, talent in those fields are still in very high demand and most matches have been restored. That talent is going to laugh at the company’s benefit offerings (no 401K match and high healthcare plan costs) when they receive an offer from Xerox and go off to greener pastures.
When I left I asked my manager if he wants to come with me. He decided to stay for the 401k match.
Don't officially "strike", just do the bare minimum or less. Ichan and team are not in it for the long haul. If you quit, if you blow off work, if you straight up make poor decisions, it won't bother them at all. Revenue goes down but they continue to siphon off cash through dividends. They can do this for years before S%%& really hits the fan, and they will move on. You are out of a job either way. Any new employer will just assume you got caught up in endless layoffs so no hit to your credibility. So if you stay, just collect your check for no work like Carl and crew do. If you go, give your new employer the professional effort Xerox used to deserve from you. Just plan for your own long term either way, since they make much more than you.
I will do everything I can to hasten the inevitable demise of this horrible joke of a company.
A strike? They don't care, gives them more of a reason to cut y'all or dock pay. Only way better is OUT
I’d be willing to go on strike. Who is with me?
Wow, they s—!!!!!! I was sold to HCL and I have to say, they match my 401k every single pay period......I like others am just getting the paycheck while looking for another job.
If this makes a difference to your retirement plans, you’re too broke to retire anyway. Also, stock dividends are not cash. This what happens when you belong to the “am I safe” crew.
I think most people are just going stop working and get paid to look for another job with the remainder of their time.
Very open to extremely creative ideas to address this benefits shortfall. Maybe a DIY severance package too.
I remember when Xerox stunts like this use to phase me....
Too bad our healthcare is tied to our employer, unlike every other modern nation in the world that pay less than half what Americans pay for healthcare. Remember that when you vote this year.
Though if we had a national healthcare system, it doesn't mean Xerox wouldn't cut the 401K match, it would be one less excuse they could fall back on.
Remember, Xerox's only interest is to its shareholders. Period. They barely give so much as a nod to the people actually propping up this company and doing the work. For those of you have forgot. the only goal here is for Icahn and his shareholders to get to 40/share and then he's out. He will do this by any means necessary. Look at the other companies he's decimated if you want to know how this will end. We've got about a year to go.... or less.
One issue is that they delay giving the match in the first place - That shouldn't be allowed. After a year, your match should vest immediately. This just gives the company a financial incentive to layoff people in December to avoid paying the match.
The biggest issue I have is that they haven't suspended stock dividend payments, which is a bigger pot of money than this pittance (comparatively). Pay the people who earn the money and create value for the shareholders, before you pay the shareholders who understand that cash conservation is in the best interest of the company and their stake in it.
At least then, the pain would be spread among all the stakeholders. But that won't happen because the people that make these decisions get stock options and the stock the their dividends are a big portion of their compensation.
Didn't Xerox take about 60 million from the government "CARES" act? Where did that money go?
My bad... it was 53 million:
"...including $53 million from various government assistance programs and $7 million from furlough programs."
Source: https://www.bloomberg.com/press-releases/2020-07-28/xerox-releases-second-quarter-results
This is in no way surprising. Who in their right mind would come to work for this company? I remember when we used to have hiring events and we had reasons/incentive for people to work here. Now? Um, you don't have to pay for your own laptop? I cannot think of one good real reason you'd want to work here. Not one. Benefits are rubbish, turnover is high, morale is awful, our "leaders" don't even care about their employees", our 401K match was cut last year and now abolished, small layoffs here and there, constant change/consolidation... there's nothing good left.
This company is a joke. I'll be leaving it soon and I can't wait!
F**K XEROX! It's time to make a plan B after 27 years! I can't take this b—s— anymore!
Do we forget who is running the company? C'mon.
This should not even be legal. It would be one thing to announce no match for the upcoming year (when you can react and do something about it) but should not be legal to deny the match for a year you have already worked. That’s just pure retirement wage theft.
@dbd+176kCakg
The one working for a loser company and got screwed out of their 401K match?
That HR twit has a cold set of brass ones
To @ytb+176kCakg:
I'm getting paid while I look for another job. Who's the id–t again?
Please one of you id–ts pontificate to me again about giving it your all because you care so much about your customers. You be too lazy to look for work elsewhere while times were good and here is pat on the back for a job well done; bask in the glow. Your inaction also had nothing to do with your non-transferable skills as everyone here knows. Enjoy your scaled back retirement!
You can bet that when the 401k match is restored health insurance costs will double. I wonder if Xerox benefits are attracting the best and brightest new talent.
They recently changed the 401k company match to happen at year end rather than quarterly like it's always been done. By doing that they removed their responsibility to pay the match to everyone they were laying off throughout the year since you had to be employed on Dec 31 to get it.
Now they can also conveniently "suspend" the match just a few months before year end without having to pay it to ANYONE.
Didn't they change the match payout scheme a year or two ago, to enable this? They can stick the healthcare ins deal.