For those with a pension moving to HCL, what happens to it? What if you were near retirement, would you be offered a bridge?
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To be an active member of any company’s pension plan, such as Xerox’s RIGP, one has to be an employee of the company or an employee of a legally owned subsidy of the company that participates in the pension plan. Should you elect to take the offer and move over to HCL, you will become an employee of HCL and are no longer an employee of Xerox, even if you are still working at a Xerox location. Thus, your active participation in the (frozen) Xerox RIGP plan and/or the Xerox 401K plan ends as of the date that you move over.
Going forward, it’s up to HCL to allow you to participate in their retirement plan, which is going to be a 401K, not a Defined Benefit plan like RIGP.
That said, any vested assets that you have in the Xerox RIGP and/or 401K plan are yours after your employment with Xerox ends. Thus, as mentioned above, you can transfer/roll-over those assts to your new employer’s qualified retirement plans, if their plan allows such, or to an individual retirement plan, such as an IRA. Its up to you as an individual as to where you want your money, just note that if you ‘cash-out’ your retirement plan assets, there are tax consequences, especially if you are not at retirement age yet. So, talk to your tax advisor/investment manager and make the right decision for you.
From the FAQ literature provided after the town hall yesterday:
- Does HCL have a defined benefit plan for retirement? At this time, HCL does not provide a defined benefit plan for retirement.
Based on this and all the veiled references and ambiguity yesterday, I'll be declining the offer letter when it arrives, and will take what I've earned out the door with me. A long call to Benefits verified that our pension will remain unchanged when we separate from Xerox, but no one knows what will happen once it is administered by HCL for those who accept the offer. Given the changes we've seen, trusting Xerox (at least for me) has gone the way of rotary phones and 8 track tapes.
"Your pension is immediately available to you for a lump sum withdrawal as soon as you are no longer an employee of Xerox. You can roll it over to an IRA without penalties."
I'm told you can also defer this as well. This should be applicable to the annuity arrangement as well.
Your pension is immediately available to you for a lump sum withdrawal as soon as you are no longer an employee of Xerox. You can roll it over to an IRA without penalties. Speak to a financial advisor.
i doubt bridge is offered. this is like you have a job if you want it at HCL. You may have to review the FAQs when you get an HCL link/info or phone # to call and ask. I doubt it though.