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HP Separation Update - August 2015 [For US Retirees]

Text of brochure sent via postal mail to US retirees in early September 2015 and posted on HP Continuum August 27, 2015.
 


HP Separation Update

At HP, we’re proud of your contributions to our Company’s success, and we recognize that our retirees are an important part of our community. Now that HP is separating into two companies, we understand that you may have questions about how the separation will affect your retiree benefits.

As a follow up to Tracy Keogh’s October 5, 2014 letter regarding the HP separation and to the "HP Separation follow-up" on March 17, 2015 [pages no longer available], HP is pleased to provide additional information on what the separation means to you as a U.S. HP retiree and specifically to your HP retiree benefits.  In general, no changes are anticipated as a result of the separation.

HP leadership is committed to making sure retirees are kept informed throughout the separation process.  We will continue to post information on HP Continuum as well as [Website defunct as of Dec. 2015]

Included below, you’ll find an update on the upcoming HP business separation, and a timeline of upcoming events. Also be sure to view the tips on getting more from your medical plan right now.

What the HP separation means to you
In November 2015, HP expects to separate into new public companies, HP Inc. and Hewlett Packard Enterprise. You and all other current U.S. retirees will be aligned to HP Inc. and participate in HP Inc. benefits programs, regardless of which part of HP you worked in as an active employee. As such, your current HP health and insurance and retirement benefits will not be changing as a result of the separation. (Of course, as is the case every year, there may be changes to your benefits for 2016 or future years unrelated to the separation.)

We recognize that you may have questions about the separation and its effect on you and your benefits. Please read on to learn more about what you can expect once the separation is completed. You’ll also want to review the timeline of important upcoming dates.

Why are all current U.S. retirees being aligned to HP Inc.?
In the U.S., the existing HP corporate entity will continue as HP Inc., and retirees will be aligned to the existing entity. Hewlett Packard Enterprise is being formed as a totally new corporate entity.

Because you will be aligned to HP Inc., you’ll continue to access your benefits using the same telephone numbers, websites, and member ID cards, and you won’t need to take any special action.

What’s happening to…your retiree health benefits
As mentioned, your current retiree health benefits will continue for the remainder of 2015, and there will be no separation-related changes in benefits pricing or plan features. The separation will have no effect on any current treatment or inpatient care that you or your covered family members are receiving.

You’ll continue to access your retiree health benefits through the existing MyHPBenefits website and HP Benefits Center, using your current user ID and password. In addition, your claims will be processed the same way as they are now.

What’s happening to…your retirement benefits (pension and 401(k))
Rest assured, you will not lose any retirement benefit value as a result of the separation, and you will not need to take any action.  If you still have benefits remaining in an HP pension plan or the HP 401(k) Plan, the value, timing, and method of your payments will not change, and you will not need to take any action. For more details about how your individual retirement benefits will be affected by the separation, watch for a personalized retirement announcement that will be mailed to your home in early September.

Accessing your retirement benefits
- As part of the separation, there will be brief periods during which you won’t be able to make certain 401(k) plan transactions. You will receive additional information about this in early September.
- Following the business separation, Fidelity will continue to provide administrative services for HP’s pension and 401(k) plans. You’ll still be able to access these benefits through Fidelity NetBenefits at www.netbenefits.com, using your current site credentials, or via the HP Retirement Services Center at Fidelity at 1-800-457-4015. 

What’s happening to…the HP Stock Fund
Similar to the creation of two publicly traded companies following HP’s legal separation, the Hewlett-Packard Company Stock Fund will also split in two—creating a new stock fund for each organization. Any units you hold in the Hewlett Packard Company Stock Fund in the HP 401(k) Plan will automatically split between the two funds. Details about the fund transition will be included in future retirement benefit communications.

Benefits annual enrollment is coming up!
Annual enrollment for your 2016 benefits will be held November 9 – 27. As in the past, there may be changes to your retiree health coverage for 2016 due to continually increasing health care costs. Such cost pressures aren’t new, and they aren’t related to or influenced by the separation. 

Detailed information about your coverage options will be mailed to you in early November.  These documents will also be posted here on HP Continuum in early November so you have quicker access to them.  

As is the case today, future changes to retiree benefits are always possible. Any retiree health changes for 2016 will be communicated to you closer to the benefits annual enrollment period. 

We will again sponsor Retiree Benefits Fairs in select locations this fall. We’ll share the when and where in the pre-enrollment information that you’ll receive in October.

What to expect and when

September
- Early September (if you continue to maintain a pension or 401(k) balance) Personalized retirement announcement mailed to your home October
- Dates and locations of retiree benefits fairs announced

November
- November 1 Company separation takes effect
- Attend a Retiree Benefits Fair (if offered near you) to learn more about your HP benefits and the Aon Retiree Health Exchange (dates and locations to be announced in October)
- November 9 – 27 HP annual benefits enrollment for retirees

For more information or to ask a question

Visit www.myhpbenefits.com for personalized benefits and cost information, provider directories, and much more.  Or call the HP Benefits Center at 1-800-890-3100 weekdays between 6 a.m. and 6 p.m. Pacific Time (8 a.m. and 8 p.m. Central Time) for general benefits and enrollment support.

 


[This is the complete article as of Mar 12, 2016 from HP's official HP Continuum site.]

[More detail from the previous "HP Separation Update" posted on HP Continuum March 17, 2015. https://www.hpcontinuum.com/news/520 -- page no longer available]

"Q: What will happen to HP retiree medical coverage after the separation?

"A: HP recognizes the importance of retiree medical benefits and intends to continue current retiree programs.

"No changes are anticipated as a result of the separation, but as is the case each year, changes to retiree medical designs or premiums are possible for 2016 based on increasing health care costs.

"On a longer-term basis, each company will make independent decisions regarding retiree benefits, considering market, business and other factors. As is the case today, future changes are always possible, and the separation will not change that fact even though no changes are currently planned."


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