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These pages will be used to provide general information of interest including answers to recurring general questions, questions related to the various retirement plans and programs, and site navigation helpful hints. In some cases, these FAQs are developed from responses that have been provided by the Xerox Benefits Office, subject to our disclaimer. There is a wealth of useful information posted here in FAQ. We encourage you to send us feedback on what you like and what we can do better in serving your needs for information.

Retiree Medical Plans - What Plan am I in?

How do I determine which of the three Xerox retiree Medical Plans I am eligible for?

There are three retiree Medical Plans for US Xerox Retirees - The "Old Plan", "New Plan" and "Flex Plan. Eligibility is dependent on being retirement eligible, that is being at least 55 years of age and with a minimum of 10 years of service and retiring on certain cut-off dates. Each plan has different terms and conditions and each has a set of limited benefits that are available to the retiree and in most cases, the retiree's dependents.

What are the Old Plan requirements?

You retired on or before 12/31/1988, or were eligible to retire (at least 55 with 10 years of service) on 12/31/1988. The Old Plan provides paid up Medical and Dental Plans to retiree and dependent with a small annual deductible ($100/$200) and a 20% copay up to 6% of pre-retirement pay. This plan, the Xerox Medical Plan is administered by Anthem Blue Cross/Blue Shield(Empire BCBS renamed effective 1/1/2012).

Old Plan retirees also get reimbursement for their Medicare Part B premiums paid out on a quarterly basis.

Added HMO Plans and post-65 Advantage Plan options are not subject to the same terms and conditions as the base Old Plan.

For Old Plan details contact the Xerox Employee Service Center - 1-800-428-2203.

What are the New Plan requirements?

You retired between 1/1/1989 – 12/31/1994. The New Plan provides a paid up Medical and Dental Plan to the retiree, and a plan for dependents requiring a contribution until age 65. There is an annual deductible, and a 20% copay up to 4% of pre-retirement pay. In addition there is a $400 FBA established annually.

Added HMO Plan and post-65 Advantage Plan options are not subject to the same terms and conditions as the base New Plan.

For New Plan details contact the Xerox Employee Service Center - 1-800-428-2203.

What are the Flex Plan requirements?

This is the current Xerox US retiree Medical Plan if you retired on or after 1/1/1995. The salaried Flex Plan provides an annual Medical Plan allowance for retiree and spouse based on age and years of service for retiree that was capped in 2003, and provides Medical and Dental Plan access to the retiree and dependents. Annual plan price (premium) increases are paid fully by the retiree. Benefits are subject to change at the Company’s discretion.

New hires after 1/1/2003 are provided access to purchase available plans until they are 65, but will not be eligible for an annual Medical Plan allowance when they become retirement eligible.

For Flex Plan details contact the Xerox Employee Service Center - 1-800-428-2203.

Since Xerox has segregated the Flex Plan retirees into their own group for health care coverage meaning we all have to be at least 55 years old, why do we have to have in-vitro fertilization, well baby care, maternity benefits, etc.? I would expect that this adds to the premium costs for our plan at a time when our costs are getting excessive and unaffordable.

There is a continued concern being raised about our plans offering services that "obviously don't apply to me" like in-vitro fertilization and other maternity services, young child benefits, and such. Actually, it is possible that some retirees and their families may need them, but our plan costs are now calculated based on actual billed use because we are in a self funded program and not a community rated insurance program. Eliminating these forms of coverage would not have any material affect on our “premium” costs since they are rarely used.

Xerox Medical Plan medical administrator change to Empire BlueCross BlueShield

Did Xerox make a change to the "Old Plan" benefits?

No, the "Old Plan" benefits are unchanged, but Xerox Medical Plan medical administrator was changed to Empire BlueCross BlueShield.

Xerox has consolidated the Excellus BlueCross BlueShield offerings under the national contract with Empire BlueCross BlueShield.

Will my dental coverage change?

No. Your dental coverage continues to be provided by Excellus BlueCross BlueShield.

Do I need a new ID card?

Yes, you should have already received an ID card from Empire BlueCross BlueShield with the new customer service number and website for your medical and prescription drug coverage in 2008. If you have not received your ID card, call 1-866-878-6177.

You can enroll in the Xerox Member portal at www.empirblue.com/xerox, and you will be able to request a new ID card.

Who administers the prescription drug plan and what number do I call?

NextRx administers your prescription drug program on behalf of Empire BlueCross BlueShield. Call NextRx at 1-866-878-6177 or visit NextRx’s Web site at www.wellpointnextrx.com if you have questions about your prescription drug benefits. Use your BlueCross BlueShield ID card for prescription drugs. You do not need a separate ID card for prescription benefits.

For questions regarding retail pharmacy, please call 1-866-878-6177. For questions regarding mail order, please call 1-800-281-5944.

Are there any changes to my Prescription Drug coverage?

The only change to your prescription drug plan is your ID card. You must use your new Empire ID card to receive coverage for your prescription drugs. You may continue to fill prescriptions at retail pharmacies (this includes the Sidney Hillman Health Center pharmacy for Union retirees who are eligible to use this facility), and while mail order is a convenient alternative to filling your prescriptions at a retail pharmacy, it is not required.

I received a letter from Empire asking for my Medicare ID number. Is this legitimate?

Yes. If you wish to take part in the Medicare crossover program where your claims are automatically submitted to Empire from Medicare, Empire needs to confirm your Medicare ID number and the letter that follows, e.g., A, B, D.

You can send verification to Empire in the envelope provided or simply call their customer service line and provide your Medicare ID number. This is an optional service.

Flex Benefits Enrollment Questions

I require routine doctor visits for monitoring/treatment of an ongoing medical condition. How will this be treated?

In most cases, these office visits would be for a "chronic condition" and would be covered at the co-insurance level of your plan, subject to the annual deductible, since it is not part any preventatives care services. See the Open Enrollment Guide for the details.

Doctor Billing/Costs: Will the retiree get the benefit of the "negotiated" billing rate for office visits based on the carrier who is administering the plan? That is, if the office visit is nominally $100 and the plan has a negotiated billing rate of $50 that they would normally pay the doctor, will the retiree payment be based on the $50 or the $100 billing?

Yes, if a retiree uses an in-network doctor, there is an negotiated rate between the provider and the health plan administrator and after the annual deductible is met, the 80/20 (or 70/30) is applied to this negotiated rate that the provider bills the health plan first and then bill you for the amount not paid by the health plan.

For out-of-network expenses, in most cases, you will be responsible for paying the doctor the full amount at the time of service and you will submit the bill to the health plan carrier for reimbursement at the out-of-network rate.

How will the annual deductible costs be tracked? Will the retiree need to submit claim forms to accrue the amount of paid expenses to credit them to the annual deductible?

Deductibles and Out of pocket maximums will be tracked by the health plan aministrator for you and your covered family members. These amounts will be shown on the Explanation of Benefits (EOB) that your health plan provides either in the mail or online as expenses are incurred.

Will there ever be a plan to allow the payment of monthly premiums using third party bill paying processes available through the Xerox Federal Credit Union and many other banks and credit unions? These third party payment processes cannot include the payment coupon from ADP with the payment.

Yes, retirees can use the automated payment processes available through the XFCU and other banks and credit unions. The proper crediting/recording of the payment may be delayed, if the social security number and account number is not on the check/auto ACH payment being made using these services.

Does the premium I pay for coverage get applied as part of my Out of Pocket annual deductible?

No, the annual deductible is based only on the payments for medical services and in the case of the "High Deductible" plans it will also include the costs of prescription drugs, since they are not subject to a separate "copay" benefit in that plan.

What happens to my spousal coverage when I turn 65?

At the point when one of the members of a couple turns 65, the pre-65 spouse will remain covered under their social security number under their own plan. It is important to note that the spouse's coverage and their billing account will now be associated with their Social Security number and that they will get a new insurance card. .

Medical Plan Payments/ Health Care Accounts

I just received my written confirmation of medical benefits and would like to be able to pay the entire year in advance so that I don't have to bother with the monthly payments. Is there any provision at ACS to pre-pay the total amount for the year?

Yes, you may pre-pay for as many months as you want to. Do not pre-pay for the year if you anticipate any changes in residence, or if you will be transitioning to Medicare eligibility during the year. In those events your billing will change and unravelling the "mess" takes extra work on your part.

You should also note that you can set up either an ACH transfer from your bank to make monthly payments or you can set up an automatic bill payment account from your bank accounts, if you have that feature. Both allow you to go on to "auto pilot" and not be concerned about the monthly billing, and it permits you to have the use of your money instead of making an interest free loan to ACS.

I need to submit a claim form to draw from my Health Care account. Where can I get the form?

If you have a residual balance after paying for your Xerox Medical plan or you have a balance from your Opt-out election, you must submit a claim form by June 30 of the following year to get reimbursed for legitimate medical bills and/or copayments paid by you or your spouse, for Medicare Part B premiums for you or your spouse, or for your spouse's Xerox plan premiums. For 2010 Claims, the form can be downloaded from this site (located in the "Other Useful Information" link) or the ADP website. You can get the claim forms by calling 1-800-654-6695 or going on line to www.flexdirect.adp.com For 2011 Claims, the form can be downloaded from the ACS website. You can get the claim forms by calling 1-800-428-2203 or going on line to www.benefitsweb.com/xerox.html

Can I prepay my Medical Plan Premiums? Are there any problems with prepayment?

Yes, you can make multiple month payments at any time. The only issue is that prepayment during the year of your 65th birthday since no post-65 (Medicare eligible) coverage is provided by Xerox for Flex retirees. When you do turn 65, your pre-65 spouse's plan is split off into a separate plan and premiums must be paid separately since this new plan will now be linked to your spouse's Social Security number.

What are my options for paying my medical plan premiums to ACS starting in 2011?

Retirees can make payment in the following ways. 1. Retirees can complete the Direct Debit (ACH withdrawal)form to have the payment debited from their account each month. 2. Retirees can submit payment using the coupon with a check mailed to the Lockbox address. 3. Retirees can have their bank submit payment using the bank’s online bill payment service. The bank should reference the retiree’s account number on the check and have the check mailed to the Lockbox address. The Lockbox address is: ACS HR Solutions Xerox PO Box 382163 Pittsburgh, PA 15250-8163

Member Poll Access Problems

When I click on the Poll, nothing happens or my screen just flashes.

You probably have a Pop-up blocker enabled. The Poll is a pop-up window that opens when you click. You should temporarily disable your pop-up blocker while on the site or you can try the (somewhat) universal method of temporarily allowing pop-ups by holding the Ctrl key while clicking on the poll.

Site Logon & Navigation Problems

I'm having problems logging on to the site

Many people attempt to log onto the ARXE site by using their name. This will NOT work. Your login "username" is your complete email address used when you registered or the last email address that you entered into the membership database, eg. "name@mailbox.com". The other possibility is that the password that you entered is incorrect. The password needed is the one that was sent when your membership was "authorized", or the last password that you entered into the membership database. You can use the "Forgot Password" function and the site will resend your password to the email address that you use to login.

How can I change my personal information, password or email address?

After you log on to the site you will notice a message at the top of the page that reads "Edit Your Information" followed by your name in red letters. By clicking on you name, you will see the file containing all of your information, currently in the membership database that was provided when you registered. Any of the items in this file can be changed. Please remember that if you change your email address, this new address will become your new login username.

After I log on to the site and attempt to navigate to other pages, I continue to get returned to the member login page.

This problem has a number of causes. The most prominient one that we've found is software firewalls. Two that have been confirmed to date are with Zone Alarm, and McAfee Personal Firewall. Both of these programs have the ability to specify sites that are friendly to you and should be allowed to access your computer.

You should enable ARXE.ORG as one of the valid sites to be allowed. If you are unsure about how to do this, you should either contact the appropriate supplier technical support function or simply disable the firewall while you are visiting the ARXE Web Site.

The second most common cause is that you may have "cookies" turned off in your web browser. The site requires that cookies be turned on for you to be able to navigate around the web site. Please refer to your browser's help system in order to turn on cookies for your particular browser. If you are using Internet Explorer, you can do this by selecting Tools from the menu at the top of the IE screen. Then select Internet Options and the Privacy Tab. You may change your privacy level you should select at least Medium or Medium-High level.

Another possibility is using an incorrect password to login. If you continuously loop back to the login page, and there is a message saying "Sorry - your login information was not found - Try Again? ", use the "Forgot Password" function and the site will resend your password to the email address that you use to login.

When I try to open a PDF file on the site, I get an error message: "Invalid function resource".

You must have Adobe Reader version 5.0 or higher in order to open some of the PDF files. If you do not have Version 5.0 or higher, you can download it for free at the following site:
Get Acrobat.

ARXE Email Problems

I am not receiving email from ARXE.

With the recent concerns over SPAM mail, many ISPs have incorporated highly tightened limits on mail from certain types of senders, and many users have begun installing or activating various Spam Blockers on their computers.

Since email is the sole method of communicating to our members, it is particularly important that you enable your mail program to receive mail for our domain (arxe.org). We send one or more mail notes each month announcing the availability of newsletters, posting announcements, and other important information of interest to our members. ARXE mail notes may come to you from a number of different addresses within ARXE.ORG, making it important that you enable the entire domain (arxe.org) rather than simply one particular email address.

Many of these Spam Blocker programs, or (most notably) "portal" providers such as AOL, CompuServe and MSN enable you to create a so-called "whitelist" which is a list of "friends". Only mail from people on this list will be received. Please make sure that all addresses from the arxe.org domain are listed in your whitelist.

Also, some email programs have the capability of creating their own junk mail or SPAM list based upon your habits of deleting unopened mail or other criteria. Please make sure that the "arxe.org" domain has not been entered on this list.

Finally, some of the "free" email services, like hotmail and yahoo provide very limited mailbox capacity and our mailnotes are bounced because the mailbox has insuffiucient room. It is recommended that you not these services because of this limitation.

As a general rule, we do not follow up on bounced mail.

If you have taken all of these precautions and you still are not receiving our mail, please contact the ARXE Webmaster for assistance in resloving your problem.

When I receive email from ARXE it frequently is displayed as a series of random numbers and letters, followed by the message and then more jumbled numbers and letters.

This problem seems to be confined to members who use "portal" providers such as AOL, CompuServe and MSN as their ISP. The problem arises from the fact they encrypt MIME attachments coming into their portals and it takes a special decoding process to make them readable. It has been reported from a number of novice or new AOL users.

You should contact the support department of your provider for resolution to this problem. They will have a solution for you.

In the interim, you can read our mail notes by saving the note to your computer's hard drive and opening it using WinZip.

The font size in emails sent by ARXE is too small for me to read them comfortably. Can I increase the size of fonts in the mail notes sent by ARXE?

You can increase / decrease the font size of your browser and mail content. Here's How: Internet Explorer & Outlook/Outlook Express Users: Click your View menu, Text Size, and select the size you want to view your web pages at. Netscape Users: Click the View menu and select either "Increase Font" or "Decrease Font" Opera Users: In the upper right hand corner of the toolbar there is a drop-down menu to zoom in or out. You can also go to View and Zoom, then select the percentage. The cool thing about Opera compared to other browsers is that it doesn't just increase the text size, but the graphics as well! If you have a mouse with a scroll wheel on it, you can do this even easier... CTRL & Spin If you are in a web browser (Explorer or Netscape) or reading an email in Outlook Express, hold down your Ctrl key and spin the wheel. It makes the text larger or smaller depending on which way you spin. For Opera users, it magnifies both the images and the text.

Relocation

What do I do when I relocate?

Medical plan availability and costs are determined by ZIP code, and it is the responsibility of the participant to inform the Benefits Center when a change in address takes place to ensure continuity of coverage. Upon notification of a change, a new enrollment package will be sent out giving the information for the available coverage in the new location.

How can I find out about plans available in an area I am considering for a relocation?

A call to the Benefits Center can be made to assess the availability and costs for plans in an area I am considering a move to. This is a good idea if there is a choice of new locations being considered since plan availability and cost is determined by ZIP code. Not all plans are available in all areas, and costs vary dependent on the local costs of providing service. This may not be a major consideration when planning a move, but it is wise to assess the potential implications of a move on the medical plans that you may have available to you in your new location.

Affordable Care Act

The Affordable Care Act states that dependents can be covered up to age 26. Why does Xerox retiree benefit plan only cover dependents up to age 23 and are fulltime students?

Xerox Retiree Medical Plans are exempt from the provisions of the Affordable Care Act, as are most other company's ERISA retiree plans.

Child Dependents

I am in the Flex Plan and have a child under the age of 19 and/or a child under the age of 23 who are full-time students. What happened to the allowance for their benefit? Can I get coverage for them?

As long as they were listed as your dependents before you retired you can purchase coverage for child dependents, however as a result of Flex Plan changes in 2003 there is only an option to purchase coverage, i.e. there is no allowance given for children dependents.

Benefits Allowance

The Flex Plan has a provision in it for a 2x Allowance Cap limiting the benefits allowance provided, as given in the Summary Plan Document:

"Basic Allowance Cap - Xerox has placed a cap on the amount to be provided as the Basic Allowance for Retiree Flex healthcare benefits in the future. This cap will take effect when the Basic Allowance reaches twice the 1995 level. When or if the Basic Allowance reaches this cap, no further increases will be made to this portion of the retiree Benefits Allowance."

What is the current status of this limit?

On January 1, 2003, the Company exercised its option to modify the Flex Plan, and changed the benefits allowance "cap". The new cap is equal to the benefit allowance formula described below and is generally available to those retirees who elect coverage through a Xerox sponsored benefit option.

This new allowance is comprised of a $2200 base allowance, plus a second component based on retirement age and years of service, and a third component based on the unused portion of the LifeCycle Assistance (which ends upon the death of the retiree for those retiring on or after 1/1/2003). For the Flex Plan pre-65 retirees, the spousal allowance is factored as 75% of the first two components of the new retiree allowance.

As an example: If you are a pre-65 retiree, your benefits allowance would be determined as follows: $2200 + $30 for each "point" above 65 (retirement age plus years of service, up to a maximum of 90 points) + your unused LifeCycle Assistance allowance factor. The LifeCycle allowance component is difficult to calculate because it is based on your remaining balance at the time of retirement, and your age at retirement.

On January 1, 2004, the Company again modified the allowance by reducing the LifeCycle Allowance factor to $240 for the first 5 years, and then eliminating it.

How is my Flex Plan Benefit Allowance calculated?

The current Benefits Allowance is comprised of a $2200 base allowance, plus a second component based on retirement age and years of service, and in some cases, a third component based on the unused portion of the LifeCycle Assistance (which ends upon the death of the retiree for those retiring on or after 1/1/2003).

For the Flex Plan pre-65 retirees, the spousal allowance is factored as 75% of the first two components of the new retiree allowance.

As an example: If you are a pre-65 retiree, your benefits allowance would be determined as follows: $2200 + $30 for each "point" above 65 (retirement age plus years of service, up to a maximum of 90 points) + your unused LifeCycle Assistance allowance factor. The LifeCycle allowance component is difficult to calculate because it is based on your remaining balance at the time of retirement, and your age at retirement.

On January 1, 2004, the Company again modified the allowance by reducing the LifeCycle Allowance factor to $240 for the first 5 years, and then eliminating it.

What was the "Maximum Contribution Cap"?

In 2003 when the company segregated the retirees from the active employees into their own "risk pool", the premiums for retirees went up significantly. After considerable negative publicity, driven by ARXE in local and national news, the company established a maximum out of pocket cap on annual premiums to be paid for individual retiree medical plan premiums. This cap amounted to another temporary allowance that was reduced over the following 5 years as the retirees "transitioned" into the much higher premiums.

Opting Out

What is my Opt Out Allowance?

The Flex Plan Opt Out Allowance was eliminated on 1/1/2009.

If I have a change in status and want to reinstate my Xerox benefits, can I do it? How?

For pre-65 participants, if you have had the circumstances affecting your medical coverage change and you now need to reinstate your Xerox benefits, you will need to submit a "Loss of Coverage" form.

It is available by logging on to Matter of Choice website at: https://www.matterofchoice.com. Once you enter the Matter of Choice site, there is a link at the top to Change of Family Status, and under that there is a pulldown, in which you choose Loss of Coverage.

For post-65 participants, beginning in 2010 you will be able to opt out and re-enter in any following year. Open Enrollment materials will be mailed to you every year.

If you have any trouble with this process, you can call 1 (800) 553-3214 for help.

Can I return to a Xerox Plan if I have a "pre-existing condition"?

Yes. The existence of any pre-existing condition does not preclude acceptance into Xerox Medical Plans as is the usual case with plans purchased at the retail level. Consult the plan administrator of any non-Xerox plan being considered before taking action to "Opt Out" of the Xerox sponsored plans. For pre-65 participants, opting back into the Xerox Medical Plans will require a "life changing" experience such a losing the plan coverage that you originally left the Xerox coverage for.

LifeCycle Allowance

I never used any of the LifeCycle Benefit during my active employment and always anticipated being able to use it to pay down my medical premiums. Can I use it now as a retiree?

The LifeCycle Benefit per se ends when you retire. There is an allowance component that is added to your benefit allowance in lieu of the unused portion of this benefit.

If you are a Flex Plan Retiree who retired prior to 1/1/2004, there is a LifeCycle component as part of your benefits allowance. It is never identified as a separate allowance, and is discussed in a little more detail in the "Roadmap to Retirement" link. As long as you are taking a Xerox medical plan, you will receive it as part of your allowance for your lifetime.

If you retire after 1/1/2004, you will receive a LifeCycle Benefit component of $240 annually in your allowance for the first 5 years and nothing after.

In 2010, this LifeCycle Benefit component will only be paid out to pre-65 retirees. Once age 65 is attained, this component is eliminated as part of the overall post 65 benefit allowance elimination.

What changes have been made to the retiree LifeCycle benefit allowance component?

As a retiree, any unused LifeCycle Assistance balance you receive is factored into the overall benefit allowance(providing you have not taken an opt-out allowance)and is used to offset the cost of benefits if you elect coverage. You’ll receive this amount as an component of the Benefits Allowance (please note that this incremental component is not identified separately and is included as part of the overall benefit allowance).

If you retired prior to 1/1/2003, your LifeCycle Allowance component continues for the lifetime of the retiree or the retiree’s spouse/domestic partner upon the retiree’s death.

If you retired on or after January 1, 2003, your LifeCycle Allowance component will be discontinued upon your death and will not be transferred to your survivors.

If you retire on or after January 1, 2004, your LifeCycle Allowance component will be $240 per year for this first five years after your retirement. This incremental amount will be discontinued upon your death and will not be transferred to your survivors.

Retirees who were over age 65 prior to January 1, 2003 may continue to receive a LifeCycle Allowance component even if you elect “No Coverage” provided you were receiving that Allowance prior to January 1, 2003.

Beginning 1/1/2010, the LifeCycle Allowance component is eliminated for all Flex Plan retirees once they attain age 65.

Is the LifeCycle Allowance component reduced by 50% at age 65?

No, prior to 2010, this allowance component is not reduced by 50% at age 65.

Effective 1/1/2010 this Allowance has been eliminated for all post 65 Flex Plan retirees.

At the time of my retirement, I had $10,000 in unused "LifeCycle Assistance" credits. While Xerox would not send me a check for that amount, I was told that it would be paid out over time with my Benefits allowance. What will happen to that money when I no longer receive a Benefits allowance?

From Xerox: "There is no bank account with each retiree's name on it in regards to the Life Cycle Assistance money.  This benefit was originally established for active employees. We made a change a few years ago to provide a portion of the life cycle assistance to our retiree flex participants as part of their benefits allowance."

The benefits allowance for Medicare Eligible Flex Plan retirees is going away as of 1/1/2010 and as a component of the benefits allowance, the LifeCycle also goes away.

Flex Plan Benefits Allowance Acceleration

What is Benefits Allowance Acceleration?

Beginning in 2005, Xerox offered an option for all Flex Plan retirees who were not eligible for Medicare on January 1, 2005 and have elected medical coverage, to elect to take their post-65 benefits allowance early and apply it toward their pre-65 Xerox medical coverage premiums, starting with the 2005 coverage.

A similar election may be made separately for a covered spouse or domestic partner who is not yet eligible for Medicare on January 1, 2005.

Once this election is made, it cannot be changed.

This option was terminated for new participants in October, 2008 when the post-65 allowance was eliminated starting in 2010.

Social Security FAQ

Where can I find answers to questions about Social Security?

Social Security has an FAQ system in place at: http://www.socialsecurity.gov/planners/faqs.htm

How can I get a quick estimate of my SS benefits and related information?

If you go to the Social Security homepage at: http://www.socialsecurity.gov/planners/calculators.htm you will find links to several calculators that can be used to provide estimates of monthly benefits. In addition there are tables showing full retirement ages and early retirement ages as a function of birth year.

What are Required Minimum Distributions?

Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired. Retirement plan participants and IRA owners are responsible for taking the correct amount of RMDs on time every year from their accounts, and they face stiff penalties for failure to take RMDs. When a retirement plan account owner or IRA owner dies before RMDs have begun, different RMD rules apply to the beneficiary of the account or IRA. Generally, the entire amount of the owner’s benefit must be distributed to the beneficiary who is an individual either (1) within 5 years of the owner’s death, or (2) over the life of the beneficiary starting no later than one year following the owner’s death. See Publication 590, Individual Retirement Arrangements (IRAs), for complete details on when beneficiaries must start receiving RMDs.

What types of retirement plans require minimum distributions?

The RMD rules apply to all employer sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. The RMD rules also apply to Roth 401(k) accounts. However, the RMD rules do not apply to Roth IRAs while the owner is alive.

When must I receive my required minimum distribution from my IRA?

You must take your first required minimum distribution for the year in which you turn age 70½. However, the first payment can be delayed until April 1 of the year following the year in which you turn 70½. For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31 of the year.

Can an account owner just take a RMD from one account instead of separately from each account?

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. However, RMDs required from other types of retirement plans, such as a 401(k) have to be taken separately from each of those plan accounts.

Can an account owner withdraw more than the RMD?

Yes

What happens if a person does not take a RMD by the required deadline?

f an account owner fails to withdraw a RMD, fails to withdraw the full amount of the RMD, or fails to withdraw the RMD by the applicable deadline, the amount not withdrawn is taxed at 50%. The account owner should file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, with his or her federal tax return for the year in which the full amount of the RMD was not taken.

Medicare FAQ

Where can I find answers to questions about Medicare?

Will I still have coverage under a Xerox Medical Plan when I turn 65?

Yes. If you are an Old Plan, New Plan, or Salaried Flex Plan retiree or surviving spouse, approximately ninety (90) days prior to your 65th birthday, you will receive an enrollment package to select your post 65 coverage. In addition, you must sign up for Medicare Part A and B.

Effective, 1/1/2010 all salaried Flex Plan Medicare eligible retirees will be provided with "access" to purchase Xerox sponsored plans, but will not be provided with an allowance.

Flex Plan Union Retirees are covered under the Collective Bargaining Unit Agreements and receive different post 65 benefits.

Will I receive a Benefits allowance once I reach age 65?

Old Plan and New Plan retirees will continue to receive Xerox sponsored medical benefits upon reaching age 65.

Effective, 1/1/2010 all salaried Flex Plan Medicare eligible retirees will be provided with "access" to purchase Xerox sponsored plans, but will not be provided with an allowance.

Flex Plan Union Retirees are covered under the Collective Bargaining Unit Agreements and receive different post 65 benefits.

If I Opt Out of post-65 medical plans, can I get back in to the Xerox plans in the future?

Effective 1/1/2010, salaried Flex Plan retirees can make the decision to "opt out" and/or "opt in" to Xerox sponsored coverage during the annual Open Enrollment period in the Fall.

Effective, 1/1/2010 all salaried Flex Plan Medicare eligible retirees will be provided with "access" to purchase Xerox sponsored plans, but will not be provided with an allowance.

Do I have to sign up for Medicare when I turn 65?

In most cases, Yes. Go to www.medicare.gov, or your local Social Security Office, or call 1-800-772-1213. You should contact the Medicare Office at least 3 months prior to turning 65. All post-65 plans require Medicare part A and part B for all of the plans. Medicare part D drug coverage is incorporated in all Xerox sponsored plans as well as most Medicare "Advantage Plans". Medicare "Supplements" do not generally provide Part D drug coverage and it is necessary to enroll in that coverage as well, when selecting a Supplement. Note if you already get Social Security Benefits you will be automatically enrolled in Medicare Part A and B effective the month you are 65.

If my spouse never worked, and he/she turns 65 before I do, can he/she get Medicare at age 65? Or, does he/she have to wait until I am 65 and I am on Medicare?

If you are at least 62 and have worked for at least 10 years and paid into the Social Security system, your spouse can get Medicare Parts A and B at age 65. If you are not 62 and your spouse is 65 or older, contact the Xerox Benefits Center.

Should I sign up for Medicare Part B if I am or my spouse is still working and we are covered by my employer and we are over age 65?

You may wait to sign up for Medicare Part B if you or your spouse are working and have health coverage through your spouse's employer. You would have to pay Medicare Part B premiums and the Medicare Part B benefits may be of limited value as long as the group plan provided by the employer is the primary payer of your medical bills. When you turn 65, however and retire most plans require Medicare part B coverage to be in place obtain retiree plan coverage. This is the case with the Xerox sponsored post-65 Plans.

What is the effective date of Medicare?

Medicare will become effective on the 1st day of the month in which you turn 65. If you turn 65 on the 1st of the month, then it will become effective on the 1st day of the previous month.

What is Medicare Part "D"?

Medicare Part "D" is the new voluntary prescription drug benefit effective January 1, 2006. It provides a prescription drug benefit to Medicare recipients.

This coverage is included in most Medicare "Advantage" Plans, but must be enrolled in if you use a Medicare "Supplement" or elect to stay with basic Medicare coverage.

How does the Medicare Part "D" Drug benefit coordinate with the Xerox Prescription Drug benefit?

The Xerox sponsored post-65 medical plans offer Medicare part D drug benefits, and in some cases better than part D benefits. The drug benefits are incorporated and do not require separate enrollment in Part D. In addition, Xerox provides certification of "Creditible Coverage" for the purpose of forgoing future penalties in the event that you opt out of Xerox coverage.

The present Medicare rules allow participation in either the Medicare Part "D" prescription drug benefit or the prescription benefit offered by Xerox. A recipient can only receive benefits from one drug plan.

What are the Medicare Part "D" benefits?

Please go to the Medicare.gov website for specifics of the coverage. Annual limits governing financial coverages are adjusted annually.

What will Medicare Part "D" cost?

The enrollee will pay an incremental premium estimated to be $37 per month, or $440 per year. The final premium will be determined in the Fall of each year for the following year.

Premiums and deductibles will be indexed over time.

Premiums are increased for "late" enrollees without creditable coverage (coverage at least as good as Medicare Part "D" which current Xerox plans provide).

Enrollment begins on November 15 each year.

Remember that Medicare Part "D" is already incorporated within all of the post-65 Xerox sponsored plans and Medicare "Advantage" plans and should not be enrolled in separately outside of the selected plan.

If I have opted out of pre-65 Xerox medical coverage, can I get reinstated when I turn 65?

Yes, any Flex Plan retiree who has opted out of pre-65 coverage will be given an opportunity on their 65th birthday to be reinstated for the post-65 medical benefits. In addition, if you opted out to be covered on a spousal plan and have lost it, you will qualify for reinstatement because of a life changing event. See the Matter of Choice website for the forms.

Please note that effective, 1/1/2010 all salaried Flex Plan Medicare eligible retirees will be only provided with "access" to purchase Xerox sponsored plans, but will not be provided with an allowance.

Pre-65 Medicare Coverage - SSDI

If I become disabled and come under SSDI, what do I do for Xerox coverage?

If the retiree has Medicare and is under 65 - the retiree needs to call the Benefits Center and provide a copy of the Medicare card.

Effective 1/1/2010, all Medicare eligible retirees will not receive an allowance, but will have access to Xerox sponsored plans.

Are the pre-65 Xerox Medicare plan options different than the post-65 plans?

Effective, 1/1/2010 all Medicare eligible retirees will be provided with "access" to purchase Xerox sponsored plans, but will not be provided with an allowance.

I have a concern about decisions we will have to make about pre-65 Medicare enrollment for my spouse when he/she comes under SSDI coverage.

First, if you are covered by a Xerox retiree medical plan and you or your spouse is under age 65 and you have Medicare SSDI Coverage, you will be required to have Medicare Parts A&B. With Xerox Plans, Medicare is always Primary and the Xerox Plan is secondary.

Second, you will need to contact the Benefits Center to initiate a new open enrollment package when the Medicare coverage is initiated. You will need to fax in a copy of your Medicare A&B card. The Benefits Center will mail you a worksheet with the same medical plans currently offered to a pre-65 retiree but at a much lower premium cost. In addition, Medicare Advantage plans will also be offered to you based on your zip code.

Finally, once the retiree or the spouse becomes eligible for Medicare, the plan will split and the retiree and the spouse will have separate plans through Xerox.

If a retiree or spouse is covered in Medicare SSDI, can he/she return to a primary Xerox plan coverage if the disabling condition subsequently improves (i.e., no longer disabled) before 65, and the Medicare benefit is discontinued?

Yes, in this event you will need to contact the Benefits Center within 30 days of losing your Medicare plan and request a new enrollment in the pre-65 Xerox Plans.

ESOP

I received a letter from Xerox stating that I had shares of Xerox Series B Convertible Preferred Stock in my ESOP and I am not sure how to go about accessing my account to redeem these shares.

You can access you by going to the Benefits Center website (http://resources.hewitt.com/xerox/). After you log in, you can find a link in the upper third of the left panel that says "Check Your 401(k) and ESOP Balances". You need to click on this link and it show a pulldown menu that allows you to select and access the balance in the ESOP category. You can execute a transaction to redeem the account balance from this site.

You can also access the same information and execute a transaction using the Benefits Center telephone call in system.

Why was the ESOP Plan ended?

Xerox originally set up the ESOP Plan as a qualified plan to supplement the retirement benefits provided through RIGP and the 401(k) savings plan. All contributions were paid by Xerox on a tax-qualified basis, i.e. on a pre-tax basis. The plan was created in 1989 with about 10 million shares of Series B convertible preferred stock to be allocated over a 15 year period. Each year since 1989, the plan released a portion of the ESOP stock to employee accounts. As scheduled, Xerox released the final ESOP shares in October 2003. At that time, Xerox automatically vested all active participants in their ESOP accounts, regardless of years of service. Final share allocations were made to the participant's ESOP accounts in March 2004. On May 27, 2004, all ESOP “convertible preferred” shares were redeemed for Xerox “common” shares. Each ESOP preferred share was redeemed for six common shares of Xerox stock. (One share of ESOP preferred stock converts to six shares of Xerox common stock because of the stock splits In 1996 and 1999.)

Pre-existing Condition

What is a pre-existing condition and does it affect my Xerox benefits?

A "pre-existing condition" is a serious chronic medical condition that requires extensive, ongoing care and may preclude insurance coverage by an insurance carrier. Advanced Renal Failure is the one condition that is generally relegated to this category. Some insurers may add other medical conditions to this category. Xerox Medical Plan benefits are not affected by the existence of any pre-existing conditions and is a major benefit to those participants with such conditions.

Retiree Life Insurance Benefit

When I retired from Xerox, I converted some of the life insurance they provided me to cash, and the remainder was to pay for some permanent life insurance on me. I have misplaced the paperwork I received regarding this. I would like to change the beneficiaries and know what the policy number is, so that my survivors could make a claim. How can I get this information?

The information can be obtained from Prudential Insurance, the Xerox carrier. You can contact Prudential Insurance at 1-800-562-9874 (this is the Xerox Customer Service Number) Make sure that you tell them that you have paid up life insurance (a personal policy not a company policy).

Does Xerox still offer retiree life insurance?

The answer depends on what plan you retired in.

For the "Old" and "New" Plan retirees, a $5000 retiree Life Insurance Benefit is provided.

For the "Flex" Plan retirees, this $5000 Life Insurance benefit was eliminated. Employees who participated in the employee "Cash Value Life Insurance Plan" prior to its closing on 12/31/1999 were given an option to purchase Paid-Up Insurance with their cash value fund when they retired.

After 12/31/1999, no retiree Life Insurance benefit is provided to Flex Plan retirees other than the paid up policy that may have been chosen at the close of the Employee insurance plan.

I am a Flex Plan retiree and have received an inquiry from Prudential about a $5000 Life Insurance Policy. Is this real or a scam?

If a Flex Plan eligible employee retired prior to 2000 and did not participate in the cash value insurance plan as an employee, they are eligible for this $5000 life insurance policy and Prudential is asking for information to complete the policy.

Please fill out the form that was sent and return it to Prudential.

Health Savings Accounts (HSA)

Since most of the Xerox plans are in excess of the $1000 limit, can I qualify for an HSA?

It is correct that you need to have a "high deductible" medical plan before you are eligible for an HSA, however only the "High Deductible" retiree Xerox plans that provide drug benefits that are subject to the deductible qualify for HSA's. There can be no benefit to the individual until the annual deductible is met in order for a plan to meet the requirements for setting up a HSA. See Retiree Flex Enrollment Guide for details.

Check in our "Online Resources" for the link to the Treasury Dept website that provides a detailed explanation of HSAs and the requirements.

RIGP

When is the RIGP plan being phased out?

Xerox will “phase out” the RIGP on December 31st, 2012. After that time you will no longer be able to accumulate Service Credits (used for 1.4% of salary x years of service, up to 30 years, calculation) and the “high five” salary will be frozen. After 2012, you will continue to get Tenure credits for retirement eligibility and for determining the age discount for the retirement benefit (discounted from 62 >30 years and discounted from 65 with less then 30 years) and also you will receive Age for the retirement discount calculation.

How do I determine if RIGP is better than CBRA (Cash Balance Retirement Account) in making a decision to leave employment?

The answer to this question is very much dependent on the individual. Xerox determines the RIGP value based on years of service, average “high five” salary and age. The retiree then has the choice of whether to take the money as an annuity or as a “lump sum”.

The “lump sum” is determined by the pension value, expected longevity and the interest rate (which is shifting from 30 year Treasuries to Corporate bonds over the next 5 years) If there are not sufficient funds in the individual’s actual CBRA or TRA (Transitional Retirement Account)to fund the lump sum, Xerox then provides an “Excess” amount to make up the difference.

If I am ready to leave now, what does waiting until the last minute with the RIGP phase out do for me?

If you are ready to leave, not waiting until the last minute for the RIGP phase out will not have a substantial impact but the “phase in” of the provisions of the Pension Protection Act (PPA) 0f 2006 will be completed by then.

This will introduce an “upward bias” in the rate which would result in a smaller lump sum (all else being equal) but the amount of the impact is very much dependent on the individual.

What is the Pension Protection Act (PPA) of 2006 and what potential impact could it have on my retirement funds?

The PPA was enacted to help alleviate some of the concerns regarding pension defaults caused by under–funded pensions. In addition to tightening the funding requirements, the law changed the methodology for lump sum calculations. Corporations argued (successfully) that part of the problem was that the lump sum payouts were artificially high because they were determined by 30 year Government Treasure Bonds and that they should be determined by corporate bond rates. According to the provisions of the legislation, between 2008 and 2012 the 30 year Treasury bonds will gradually be replaced by corporate bonds. The bonds will be a composite (“yield curve”) so the rate used for each individual will be age dependent. While it is difficult to assess the exact impact of the change, the move to the corporate bonds will have an “upward bias” and will tend to lower the lump sum payout. The new law also implements a new mortality table which should have a slightly favorable impact.

What is the "Anglim" / IAP Settlement Benefit?

The Anglim/IAP settlement was an agreement reached in 1986 to resolve a legal action regarding Xerox promising to provide inflation adjustments to its retirement plan. People who are eligible must have been employees between January 1, 1982 and November 17, 1982 (other than any such individual who on or before May 29, 1986 terminated employment before completing ten Years of Service). It is a very small benefit equal to ninety-six one hundredths of one percent times the Member’s monthly retirement benefit. If someone is eligible it automatically is part of their RIGP benefit.

Lump Sum Distributions

What is the relationship between the new "blended" interest rate and the RIGP Lump sum distribution amount.

The relationship is "inverse", that is if all other things are equal, the Lump Sum distribution will be decreased by an increase in the blended rate.

Is the Interest Rate for determining the Lump Sum distributions changing?

Yes, the Pension Protection Act of 2006 calls for the rate used for lump sums to be a blend of short, intermediate, and long term corporate bonds on a blended yield curve. The actual rate for determining lump sum distributions from the RIGP account is posted on the Benefitsweb website.

Retiree I.D. Badge

How can I get a Retiree I. D. Badge

Retirees need to call Security to find out how to get their retiree badges. Here are the numbers: 585-422-2122 or 1-866-979-8222.

Retiree Discount Programs

What discount programs are available to me as a Xerox retiree?

We have a link "Retiree Discount Programs" that provides current information on known vendors offering discounts to Xerox retirees.

If you know of any that are available that are not listed please send the information to the webmaster.

XEAP for Retirees

Is XEAP available for retirees?

Retirees are covered and can use XEAP. XEAP is now managed by CIGNA. To find out what is offered, the retiree can call 1-800-806-2064 or visit www.cigna.com/xeroxbenefits

Membership Dues

What are the dues for membership in ARXE?

We offer three membership options, so you can extend your membership beyond one year and obtain a discount. The three membership options are: 1 year/$10, 5 years/$40, and 10 years/$60. Please send your check or money order to: Association of Retired Xerox Employees P.O. Box 21 Webster, N.Y. 14580






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