Xerox Corp. Retirement Income Guarantee Plan, Stamford, Conn., reached an agreement to settle cash-balance-related litigation, requiring it to pay $239 million to plaintiffs and for legal fees, the company announced.
The settlement is subject to approval by U.S. District Court for the Southern District of Illinois, which Christa Carone, Xerox spokeswoman, said could occur in the first quarter.
Plaintiffs claimed the plan improperly calculated lump-sum distributions from cash balance accounts, resulting in lower benefits for certain employees who left the company between Jan. 1, 1990, and Dec. 31, 1999.
William K. Carr, attorney for the plaintiffs, couldn't be reached for comment.
Xerox reported $5.963 billion in pension assets and $7.931 billion in pension obligations as of last Dec. 31.