As someone who was GM/EDS/HP - RIF'd in 2009 by HP - then started drawing my pension from HPE in 2015, any known changes to pension payments at this time? I personally hope they offer another pension lump sum payoff.
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If the company goes bankrupt then you lose it all
Yes, it happens
Pension plans can be terminated changed..
Read the fine print
In the summer of 2016, for us that had less than a $100k balance in the "old" EDS pension plan, we were offered an option to cash out. The cool thing was, it just wasn't your balance but ALL the estimated future payments that your balance would have generated until the death tables say you'll be dead. For a male, that is about 78+ years old. I took the cash and ran. Stuck it in a IRA, and I'm generating a nice monthly increase every since. On the flip side: I have a buddy who had 30 years in with EDS/HP and was laid off in about Sept 2016. Back before the split, his estimated monthly payouts out of his EDS pension was about $3,600/month. After the Nov 2015 split up of HPQ / HPE, his estimated monthly payment mysteriously dropped to about $2,500/month. After the spin/merge to CSC was announced, he actually ONLY gets a check for about $1,600. What happened? The company stole from the pension plan twice to pay for reorgs. I thought that was against the law? Guess not. Bottom line, what a chicken sh-t way to stab your employees in the back once again. BTW, I was laid off in Feb 2017 and got the "HPE" severance rather than the "DXC" severance. Praise the Lord!!!
I would be curious to know what others have, I retired prior to the HPE/HP split, My retirement payer is Hewlet Packard EDS EER.
The problem with a Lump Sum Payment is you wouldn't be able to generate the same monthly amount by investing the lump sum and taking a monthly check as you would by the HP EDS EER retirement payment, not even close.
Found this in the spin announcements: Also, DXC assumed $600 million of net pension liability and $400 million of existing debt, consistent with the previous descriptions of the transaction structure.
So the question is: what pensions were included in the pension liability transferred to DXC??
How can that be determined?
I cashed my piddly little pension in last year since they stopped contributing to it about 2 years after our IT org joined HP. It would've been no use to me at retirement time.
When HP acquired EDS in 2008, they assumed and transferred over all EDS pension accounts along with EDS's funding for these accounts as they were frozen.. These were fully employer funded accounts and not 401K or contribution accounts. There were about 50,000 pension accounts from what I remember.
I left the company last year... but I still have a Pension from HP. It was "Froze" in 2006 but it's still there.
I am DXC now but my Dad and I are both old EDS people too. We have retirement pensions like you. My Dad has been drawing his for a while and I have not started. He has seen no changes to his monthly payment and received no notice of change. I went to the Fidelity website today and my pension account numbers and projected monthly stipend look the same as ever. I also checked my 401k account and it looked healthier than ever ... so that's good news. But as far as I can tell there are no plans to change our retirement pension plan or offer a lump sum buyout again.
Ha ha You are funny! I miss working at HPE! Had some good laughs!
Why is that hard to believe? Laying somebody off doesn't automatically eliminate the company's obligations under the legacy (pre-401k) pension plans. If it did, they would just lay everyone off! Oh... wait...
You were laid off from HP in 2009 but have a pension from HPE? That's hard to believe.