Xerox Changes in Health Benefits for Retirees Class Action

Benefits for retired persons are crucially important; elderly people can no longer simply get another job or earn more money to pay for price increases. The complaint for this class action alleges that Xerox Corporation and its Plan Administrator Committee reneged on promises about its medical and dental plans for retired employees.

Xerox at one time offered employees and retirees medical and dental plans where Xerox paid all premiums and costs and the insureds did not need to contribute anything. This was later called the old plan.

In 1983, it changed the terms for active employees, but not for retired ones. The new plan required that employees pay deductibles, offered partial rather than full reimbursement for hospital and surgical charges, and required employee contributions toward the coverage of dependents. This was known as the new plan. Later, changes were made for retirees effective in 1989, putting them in the new plan.

An important provision in the new plan was the statement that “the Company, at its discretion, may at any time terminate any of these plans and policies or the statements made in this booklet.” The old plan had no such provision.

In 1986, as part of its efforts to reduce its costs, Xerox offered an enhanced early retirement program (ERP) for those who agreed to take early retirement by the end of January 1987. The ERP offered certain incentives to take the early retirement, including that the retirees would have medical and dental coverage under the old plan.

Paul Vollmer, a Xerox employee at the time, accepted the ERP. He and his wife Marilyn are the plaintiffs in this case.

Xerox has made subsequent changes to its medical and dental plans.

In letters dated October 25, 2018, the Vollmers received individual letters informing them that they would now have to pay premiums for their medical and dental coverage, of $260.47 each. The Vollmers challenged this change, but in April 2019, a representative of the Plan Administrator rejected their claim. The Vollmers appealed, but their appeal was also rejected in December 2019.

Also in late 2019, they were sent letters increasing their premiums to $282.32. In October 2020, they were informed that their cost sharing would increase to 60% and their premiums would go up to $313.40 each.

The class for this action is all former Xerox employees who elected to take early retirement according to the ERP detailed in the October 17,1986 ERP, along with their spouses, who were receiving or eligible to receive medical and dental benefits as of December 31, 2018.

Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Xerox Changes in Health Benefits for Retirees Complaint

November 16, 2020

Benefits for retired persons are crucially important; elderly people can no longer simply get another job or earn more money to pay for price increases. The complaint for this class action alleges that Xerox Corporation and its Plan Administrator Committee reneged on promises about its medical and dental plans for retired employees.

Xerox Changes in Health Benefits for Retirees Complaint

Case Event History

Xerox Changes in Health Benefits for Retirees Complaint

November 16, 2020

Benefits for retired persons are crucially important; elderly people can no longer simply get another job or earn more money to pay for price increases. The complaint for this class action alleges that Xerox Corporation and its Plan Administrator Committee reneged on promises about its medical and dental plans for retired employees.

Xerox Changes in Health Benefits for Retirees Complaint
Tags: Changes to Retirement Terms, ERISA Violations, Employment Violations, Health Insurance, Retirement Plans