The New York Times is reporting that Xerox has reached a settlement with former plan participants of the Xerox cash balance plan in the amount of $239 million: “Xerox Settles Pension Suit With Retirees.”
The proposed settlement is contingent on court approval and involves former plan participants who left Xerox’s employ between the years 1990 and 2000 and elected to take a lump sum when they left in lieu of a pension commencing when they reached age 65. According to the article, Xerox said it would not have to contribute additional money to the plan to cover the payout until at least 2005.
Quote of Note: “Xerox had said it might appeal the case to the Supreme Court but acknowledged with the settlement that it had abandoned that idea. A spokeswoman, Christa Carone, said the company wanted ‘to avoid any further uncertainty or legal expenses” stemming from the dispute.'”
You can access the press release from Xerox here.
If you would like to learn more about the case, Berger et al. v. Xerox Corporation Retirement Income Guarantee Plan, you can access some links to articles discussing the case under “Cash Balance Plan Litigation Links” over on the right. (Scroll down some.)