Thread regarding DXC Technology layoffs

"Highly compensated" is a legal term, as far as U.S. tax law is concerned. Without seeing more detail on this plan, though, it's hard to know if they're employing the term that way or as yet another way to hurt employees who haven't seen raises in years.

If DXC ceases to exist for some reason then your compensation will certainly be deferred ... never to be seen ever again. Don't trust anything that these tossbags say, unless they can provide a signed written statement providing a 100% legal guarantee that the compensation will be provided at the end of the period.

It's a CON !!! Pure and simple.

DXC are making money out of this and will use every opportunity to screw you over.

How come someone who hasnt seen a pay raise in 7 years suddenly becomes "highly compensated" and offered this option ?

Pure nonsense, just another way of 'Stealing from Peter to pay Paul'

The generic definition of DCP is obvious, and spelt out. If only everything is so simple, DXC does have a whole of people still believing... just like in politics...

No salvation here... but brutal reality, to wake them up

Uhhhhh.... I'm not sure anything nefarious is going on here. A 401k is a deferred compensation plan - it is a "qualified" deferred compensation plan, meaning it is very highly regulated in both good and bad ways. "Good" in that the funds are relatively safe, "bad" in that there are contribution limits.

For highly paid individuals (e.g., those who have maxed out 401k contributions), many companies offered "non-qualified" deferred compensation plans as a vehicle to reduce tax burden. These are more loosely regulated and if the company goes "poof" a chance your account may go "poof" along with it.

Otherwise they more or less operate the same - the contribution is done pre-tax, so you gain interest on the pre-tax amount and only pay taxes upon withdrawal. Presumably that is post-retirement when one is otherwise not earning (and so presumably in a lower tax bracket if not taken out in one lump sum) and so it tax advantageous on that end as well.

I suspect this is simply a non-qualified deferred compensation plan - key being it's restricted to "eligible" individuals. Qualified plans must be non-discriminatory, non-qualified can be offered at on a discretionary basis - usually executives as there is essentially no point in using one unless you've already capped your 401k.

This is done everywhere, all the time.

I wonder what makes one eligible.

The BS this company comes up with is amazing.

For the doubters and naysayers... here is the email snippet,

The 2019 DXC Technology Deferred Compensation Plan (DCP) midyear enrollment period will be held from Wednesday, June 19, through Tuesday, July 2, for newly eligible employees only. As a newly eligible employee, if you wish to participate in DXC’s DCP midyear enrollment process, please follow the enrollment instructions outlined below

I’ve not seen anything about this yet but is a slap in the face, an insult.

LOL - I remember the 're-earnable bonus plan' of yesteryear. Worked the same way, you had the promise of what was essentially a bonus that would be more than the amount your salary was cut at the start of the period, so if you performed well, you'd get the deferred bit back and probably more.

Of course then it got tied to Company performance, and not personal performance, and all the excuses started as to why they couldn't pay out...

Of course, as you have no contract in the US, any deals like this are subject to the same 'at-will' employment conditions, so they can pretty much change it any time they like, for any reason, and you as an employee can either like it, or quit.

Bottom line, it's a way to cut payroll costs, without actually laying off more workers

Mikey should be the first recipient of this looney idea and 90% of his benefits should be deferred to 2025.