Broker Check

Xerox U.S. Retirement Income Guarantee Plan (RIGP) Benefit Funding FAQ 2021 and my insights

February 23, 2022

Xerox U.S. Retirement Income Guarantee Plan (RIGP) Benefit Funding FAQ 2021 and my insights.

My twenty-two years of experience working with Xerox employees, twelve of which I was the lead advisor in Rochester, NY, with the Xerox Federal Credit Union (Xceed), has given me sound knowledge and insight into the Xerox Rigp and 401k.

On September 22, 2021, Xerox updated a Frequently Asked Questions (FAQ) document. This updated document can be found on the BenefitsWeb, with plan documents, Summary Plan Description (SPD) that explain the Xerox RIGP plan, and other RIGP documents you can download.

In the FAQ are several questions. I will review some of the questions and discuss what the document says. I am not an attorney, I don’t give legal advice, and the Xerox documents provide the legal description of the Xerox Benefits.   Please log into Benefitsweb and download your copy:

  1. Can Xerox Eliminate the RIGP? The FAQ states no.
  2. Can Xerox reduce the RIGP Benefit? The document says no.
  3. Can Xerox Eliminate the lump sum benefit? The document states no.
  4. What happens to the availability of the lump sum payments if the RIGP funding falls below certain levels? Here the document expands on the answer for question 4 and changes the answer from NO to when it will reduce the lump sum benefit.
    1. If funding drops below 80% but is over 60%, only 50% of your benefit will be available as a lump sum. The remaining 50% will be payable as an annuity.
    2. If funding drops below 60%, NO Lump Sum will be available.
    3. Do you have a TRA, and its balance is higher than the CBRA, then your lump sum will not be reduced.
  5. When will RIGP’s funding level for benefit restriction be determined? It is currently at 80% through February 28, 2022. Therefore, a new Annual Funding Notice should be available in a few weeks in March 2022.

The Xerox plan administrator will communicate changes to the plan, consistent with all legal and fiduciary obligations found at  

If the lump sum is reduced, it will undoubtedly reduce the options you have upon retirement and the control you have over those funds. However, it is not a given that this will reduce the quality and longevity funding of retirement, and for some, it may have a beneficial effect.

Are you financially and emotionally ready for retirement? Contact me to understand your unique situation and the pension options that best suit your needs.   We do fee-based financial plans.

Xerox and Valiant Standard Wealth Management are separate companies.  Xerox does not endorse particular financial services companies.