Thread regarding Xerox Corp. layoffs

I left Xerox in September 2020, and decided to roll over my Xerox 401K to new employer plan in T. Rowe Price in January 2021, before the move to Voya. The check never arrived at T. Rowe Price. Voya has no record of my name, SSN, address, etc. Xerox Benefits center is claiming all data has been migrated.

All I have is the confirmation of the final distribution transaction.

Any ideas on this? Currently, retirement savings is out there in a paper check.

I left Xerox last June 26, 2020 and have not been happier. I left my 401K in Conduent's hands, with Edelman Financial as the fiduciary. I did not even know about Voya's switchover as I have been out of town visiting family since late November and have not seen any of my regular mail. I assume that Edelman is no longer my fiduciary, and that Voya is now fulfilling that roll? Before taking Edelman's introductory no-fee offer early last year, while still employed, I was with Vanguard 2020 Fund, very conservative. I may want to go back there once I figure out how. I left Xerox without rolling over anything from the 401K, as I was not sure where I wanted to go with it. Now I need to get busy on doing something about it, if Voya has a high fee structure, and if I can do better elsewhere!

For those still working: There's no sense to get upset over the fees, there's nothing the working person can do about the change to Voya. My worry Is that "poof" the pension goes away?

@6hrr I did the homework I will actually save $200 (woohoo I know lol) with Voya over conduent. Average for my mix was .43% in fees with conduent and with Voya it would be slightly lower. The sky is not falling BUT there are better plans out there. I’m at another company now and I may switch once I see those fees and make the calculation. The most important thing when you leave is to take the pension. The day you give notice you want to call the benefits center. It’s a separate call center in Kentucky and they are phenomenal. I called on the day I gave notice they gave me detailed specific instructions and my financial adv had the check 3 days after I officially exited.

Voya is only the record keeper (administrator). Everything else pretty much stays the same. Even the funds.

Once I leave, I will most likely move my 401k / lump sum to Fidelity Go. Voya's fees seem high, and they get lousy reviews for customer service (Like many other companies, I'm sure).

https://www.employeefiduciary.com/blog/voya-401k-fees

From what I read, the fund management isn't changing. All that's changing is the administrative management of the funds. According to the information collateral on p. 4 it states: "There will be no changes to the investment lineup. Your 401K Savings Plan account balance will remain in the same fund(s) after the transition to Voya is complete".

If anyone has other information, please post. I no longer work for Xerox and am dependent on the information I received in the external mail and this site. I know so few people anymore inside the company, and no point in trying to reach HR.

Mr. Icahn owns both Xerox and Conduent. So, I find it odd that this contract would be moved as it takes money away from him and he has made it very clear over his career that his actions benefit him first and foremost. Thus, when I received this letter, I had assumed that Conduent was leaving the 401K administration market. But, that does not seem to be the case, yet. A quick search indicates that Conduent is focused on the large market – employers with 10,000 of more employees. Voya, on the other hand, seems to be more mid-market. Could this indicate that Xerox expects to be under 10,000 US employees in 2021?

In either case, Conduent nor Voya are market leaders. This is first and foremost about savings money while employee’s needs are distant second. Remember the person who has the authority to make this change is likely the CHRO and her track record over the last 2 years is clear.

Remember, 401K money is yours. You can move it to an Individual IRA or to your new (hopefully) employer’s 401K on demand without penalty. The only negative is that you would not be eligible for a company match and since that is off the table for at least 2021, it’s a moot point.

@5ubs+18GNP93Y I think the point here is that instead of switching to a quality 401k provider like Fidelity or Lynch we are seeing yet again that Xerox is choosing from the bottom of the barrel. All while claiming to be a tech powerhouse even though no top tech talent would ever choose Xerox with how bad the benefits have gotten.

If one compares the fees and expenses for those funds currently being offered through Conduent you’ll find that the fees are exactly the same. Exactly. The Vanguard retirement funds are slightly lower which is true. No one should have all their money in the Int’l Stock fund or the Large Cap Stock fund or the Bond Fund anyways. If you are diversified you might be paying a max of .25%. $2500 on a $1M portfolio. Again - the exact same as your current Conduent plan. All the info is available to see, you just have to look. Since I know someone will call me out, I’m just a low paid field guy that knows investing and how to read.

He wants you to leave on your own so he doesn't have to pay for your unemployment and it's long past that anyone intelligent is going to apply or stay here. Only a DocuTard would believe in the Tech Powerhouse nonsense.

This move to Voya belies the goal of Xerox to become a "tech powerhouse". Intelligent job seekers are comparing Xerox offers to all other real "tech powerhouse" companies. Other companies offer competitive benefits. Does Johnny think he can fool people with this charade?

Voya Financial Review: 401K Plan, and Retirement Account Pricing for 2021
Voya has no shortage of different types of financial accounts and services compared to their competition, but Voya members who have accounts through their employer will have some employer-specific limitations on which funds are made available to them as investment choices. Those who prefer a hands-off approach to investing will find a series of retirement funds for their Roth or traditional 401(k) with target retirement dates at five-year intervals from 2025 to 2055 with individual expense ratios ranging from 0.69% to 0.75%. It’s important to note that these ratios are on top of Voya’s account-level administrative fees.
Voya Fees like most other investment management companies, Voya takes a flat administrative fee, which may vary depending on the account balance, account type, and/or employer profile. While Voya advertises that they offer managed portfolio options have expenses ranging from 0.95%-2.00%, a quick calculation on one user’s quarterly statement showed an administrative fee of nearly 3.5%. Unfortunately, these fees are not stated outright anywhere in a user’s online account profile. Finding the administrative fee on a quarterly statement requires a manual calculation from currency into percentage, as well as the knowledge that “Other Debits” includes the administrative fees.

"Distribution/Other" are fees that are listed on a user’s statement by dollar amount by fund, which makes calculating the overall fees a challenge for the average investor.

Other Voya fees, like distribution fees, loan fees, and check delivery fees, still apply; again, these are dependent upon the account type and/or employer profile. Fee transparency is not one of Voya’s strengths, especially when their competitors have financial statements that show much clearer summaries of the true administrative fees.
When compared to their most prominent competitors, Vanguard, E-trade, and TD Ameritrade, Voya leaves much to be desired in terms of its lack of fee transparency and its lackluster list of fund options. Their in-house target retirement funds are more expensive with the same (or lesser) overall performance of Vanguard’s equivalent funds. Voya’s financial planning and retirement tools might be flashier and more colorful, but for the average investor, it’s hard to justify the extra fees Voya charges for a few extra pixels.

Opening a second brokerage account with top rated broker, such as TD Ameritrade, looks like the most reasonable and safe approach.

On pages 7 - 9 of the Disclosure of Plan Related Information, the fees are broke out and they are annual fees. For target funds, the fees are .18% (or about 1/5th of 1%). On $1,000,000, that's about $1,800 per year. Some of the other funds have fees ranging from about half of 1% to almost 1%. The redemption fees (1 or 2%) only apply if you are moving in and out of funds within a 30 window. On the surface, these rates don't see out of line and I'm guessing are not much different from the previous plan expenses.

I'm so glad I checked this site because I got information about this and assumed it was just an annual notice and didn't look carefully enough. However can someone explain where they are seeing this monthly fee? All I'm seeing is annualized total gross operational expense fees per $1,000 and paying a couple of hundred a year is far different than a couple of hundred every month. I do see professional account manager program monthly fees but they still show an annualized fee that comes out to between $450-500/year. Can someone point to what page in the booklets mailed that this $1.20/1,000 per month is located?

Another disgraceful abuse of employees. All in the name of delivering results to the most important constituents of the company: shareholders. Since Icahn came into the picture my compensation has declined at an accelerated rate. From healthcare expenses to retirement savings erosion and no raises. I speak for the majority of employees when I say Xerox will never get another honest day's labor from me. Everyone pack your parachute, the pandemic will end and the job market will improve. The shameless, perfidious thieves at the helm will preside over the dissolution Xerox.

If you are no longer a Xerox employee, then you can move your 401k funds. There is no penalty if you move them to an IRA or a 401k with your current employer. You would need to either do a direct rollover or get a check & deposit it within a certain timeframe into a qualified account. The direct rollover is easier. The current accounts will be locked at the end of January (26th I think). So plan to move your money before then.

The fees outlined in the documentation that was mailed look outrageous. This will dramatically affect one’s year over year 401k growth if one moves money around several times a year. Sending this to my financial planner but makes me want to reduce my 401k contributions and increase my monthly amount to my financial planner. Achieving individual wealth just got harder! Thanks Xerox!

"Every account will be charged $1.20 per month per $1,000. (A $200,000 401k account will be charged $240.00 Monthly) Administrative Expenses fee."

The 0.12% is yearly, not monthly, if I'm reading the fee disclosure properly.

I no longer work for Xerox. I never got a message about this. I want to know if I get switched to Voya if I can transfer to another provider without a 10% penalty.

Remember pre-COVID when y'all decided to stay at the Tech Powerhouse? Sorry you have non-transferable skills but you should have at least tried don't you think?

Xerox 401k Savings Plan is moving to Voya. and closing their relationship with Conduent and Financial Engines/Edelman Financial Engines. Xerox is using the Financial Engines platform only, not their advisor’s services. Voya Financial has very high management fees, which is described in the administrative and fee expenses document.
Every account will be charged $1.20 per month per $1,000. (A $200,000 401k account will be charged $240.00 Monthly) Administrative Expenses fee.
Professional Account manager program (Financial Engines, cannot assist former or current Employees) Accounts will be charged a .45% monthly Fee point. (First $100.000) What is a Fee Point? A fee point investment is evaluated against nine individual factors and thresholds, with points allotted if it fails a particular criterion. With this in mind each investment will be charged differently per quarter or annually.
We will also be charged a Redemption Fees, what are Redemption Fees, if an investor in the Trust has no assurance against loss in a declining market, and redemption at a time when the market value of the participations is less than their cost will result in a loss to the ... of such dividends and interest that are not distributed to participants but are used to pay the fees and expenses of the Trust, at the time such dividends and interest are received by the Trust, ...
There are more fees but I don’t want to get confused, to put it in a nutshell all fees will be increased. Total annual fund growths can be negatively impacted, due to investment management fees, planned administration expenses and fund performance.
Difficult times for the average Employee, Executives may have different investment savings plans. Consumer affairs 2020 has Voya Financial at a rating of one (1-5 rating). https://www.consumeraffairs.com/finance/ing-direct.html

Remember Invest well its only your retirement.
Mr Z

Voya offers the company low rates then makes their money in high fees and limited options for the employees using the service.

From one POS provider / administrator to another. One consolation is that Conduent is out.

Kiss your 401k goodbye...Xerox picks the cheapest way of doing things and your best interests are NOT one of their concerns....