Xerox to cut benefits for non-union retirees

Sarah Taddeo | Democrat and Chronicle

Show Caption Hide Caption End of an era: Xerox signs come down Skylight Signs removed all exterior signs and logos from the former Xerox building on S. Clinton Ave.

Xerox Corp. will end some company-sponsored health benefits for non-union retirees by the end of the year, according to several letters received by former workers at the document technology company.

Maria Leonardo, 61, of Perinton voluntarily retired from a three-decade stint in management at Xerox in 2015, after the company told employees that it was ending its corporate "Benefits Allowance" subsidy program for employees who retired after Dec. 31 of that year. Leonardo said she "jumped at the opportunity" to quit before December, so she would be guaranteed her subsidized health insurance.

But now, Xerox is reneging on that program. Leonardo received a letter on Oct. 3, alerting her that Xerox will end Benefits Allowance, which covers a little over half of her yearly health insurance premiums, she said.

“You entice me with a carrot, I take it, and now you’re telling me you’re taking it away,” she said.

She still has four years before she’s eligible for Medicare, and she’s concerned that she’ll only be able to afford mediocre health insurance coverage.

“It’s not so much of a concern with financial stability as much as I’m going to minimize my health insurance options,” she said.

It appears there are multiple versions of a letter about health insurance changes being sent to retirees.

Leonardo's letter and a second, similar letter both mention changes to Xerox retirees' HRA accounts. Retirees should enter all qualified expenses for themselves and family members by June 30, 2019, the letters state. After that, company reimbursement will end and any unused funds in their HRAs will be forfeited.

The second letter additionally notes that company-sponsored retiree medical, dental and prescription drug coverage for “New Plan” retiree participants is being suspended on Dec. 31, as well as company-sponsored, retiree-only group life insurance coverage (for this group only — life insurance was either guaranteed or not mentioned in other letters).

A third version of the letter, received by Marvin Becker, 84, of Henrietta, referenced the "Old Plan," a benefits package he received upon retiring from Xerox in 1989 that covered 100 percent of his (and his spouse's) health insurance premiums.

Now, those retirees who want to stay on that plan will have to pay 50 percent of their premiums starting Jan. 1, the letter states. It's unclear how much the premiums will be, so Becker is undecided about whether to stay with the old plan or search for an alternative.

"I feel disappointed, but certainly not shocked," said Becker. "I’ve been fortunate for 29 years, so it's hard to complain."

His understanding is that retirees received slightly different letters based on when they retired.

A Xerox spokesperson declined to comment on the reasoning behind the separate letters or anything else regarding the health insurance changes.

Union retirees' insurance will not change

Xerox union retirees’ health insurance status will not change, because they’re covered by the terms of their contract, said Gary Bonadonna Jr. of the Rochester Regional Joint Board, an umbrella organization that represents multiple local union shops, including Xerox’s Local 14A. The changes only affect retirees who were salaried, such as those in management.

The company completed a review of its health insurance plans to make sure they aligned with Xerox’s “business objectives” and “competitive industry practice,” read the letters.

“In order to succeed, we must make some difficult, but necessary, decisions,” the company stated.

STADDEO@Gannett.com