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Pension issues for EDS alumni (Electronic Data Systems Corporation)  (Updated Apr 8, 2021.) Comments about this page to: info@hpalumni.org

See all of HPAA's information for EDS alumni -- stock, career, benefits, networking, EDS history/culture  -- whether or not you ever worked for HP: https://www.hpalumni.org/eds

Key: Legal successor and corporate names. 

- HPInc is the legal successor to the companies acquired by the Hewlett-Packard Company before the company was split into HPInc and Hewlett Packard Enterprise (HPE.) Responsibility for any commitments to former employees of Autonomy, Compaq, Digital, EDS, Tandem, etc. remain with HPInc -- regardless of whether the employee's last business unit ended up in HPInc or HPE. This includes employment verification and any retiree health coverage, pension, 401(k), etc. plans. HPE is responsible for any commitments to former employees of companies acquired by HPE, such as Cray, Nimble, etc. (About the HP Breakup)

- When EDS was sold to HP on Aug 26, 2008, it was temporarily structured as a wholly-owned subsidiary called "EDS, an HP Company." On Sep 23, 2009, it was renamed "HP Enterprise Services."

Which HP-related companies am I a retiree or former employee of? (Not always obvious.) Given HP's complex history of acquisitions, divestitures, and spinoffs, the company or companies that you are legally a former employee of may not be obvious. If any doubt, check here: Which Company

Make sure that every company you ever worked for has your current postal address. Even if not classified by the company as a "Retiree" or if long gone -- in case of class-action settlements or other issues. Update address at former company

Other benefits issues for EDS alumni -- including 401(k), stock, HPInc and HPE retiree benefits, vehicle discounts. Report disability or a death to the company. https://www.hpalumni.org/edsBenefits

Pension contacts:

- U.S. The HPInc Retirement Service Center manages pension and 401(k) accounts for HPInc (formerly named Hewlett-Packard Company.) Also manages any pension or 401(k) accounts that Hewlett-Packard predecessor companies (such as Compaq, Digital, and EDS) may have had. Operated by Fidelity Investments.
1-800-457-4015, M-F 7:30 AM to 11:00 PM Central Time. Outside the U.S., call 1-508-787-9902 collect. Website: https://nb.fidelity.com/public/nb/hp/home

- UK: Administered by Equiniti.

- Outside the U.S. HPInc Worldwide HR Support Country Selector   If country not listed, contact regional headquarters: HPInc Offices Worldwide or HPInc Corporate Headquarters

EDS pension:

If you received a "Potential Private Retirement Benefit Information" notice from Social Security, it is based on years-old information, as indicated by the "Year Reported" box. The key word is "potential." Here's how to decode it -- and who to contact if you are not sure what happened with that account.

If you were employed by EDS or "EDS, an HP Company" before January 1, 2009 you may have an EDS pension that you have forgotten about. If you are not collecting on (or did not cash in) an EDS pension, check for an EDS pension account with Fidelity.

"You may have a benefit in the [EDS Retirement] Plan if you were employed by EDS before HP acquired EDS on Aug 26, 2008, or if you joined "EDS, an HP Company" [quotation marks added] between Aug 26, 2008 and December 31, 2008. The plan was closed to new participants on January 1, 2009. Eligibility to earn Pay-Based Credits to Personal Pension Accounts (PPAs) under the Plan ended on December 31, 2008, although Interest Credits continue to accrue on existing PPA accounts"
--from our copy of the EDS Retirement Plan Summary Plan Description (SPD) -- which is dated January 2012 and may be out of date. Ask the Plan Administrator for a current copy. 

EDS Retirement Plan:

- Name: "EDS Retirement Plan, a sub-plan of the Hewlett-Packard Company Pension Plan"

- EIN: 94-1081436 -- Plan number: 003  ("EIN" = IRS Employer Identification Number)

- Abbreviated as: 94-1081436-003

Key points:

The account is growing at 5% per year if you left EDS after July 1, 1998. (HP's own legacy pension plans do not have that feature.)

What if HP goes under? The plan is backed by a trust fund -- and is listed on the federal PBGC website as insured. (Full payout not guaranteed for larger pensions -- $5,812 per month maximum for someone who starts taking pension at 65. See this table:
https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee )

If employee dies before payments begin, generally payable to surviving spouse or beneficiary. (Details on SPD page 26.)

Key document: "EDS Retirement Plan Summary Plan Description" (the "SPD") -- with many key details, including annual interest credit, QDRO, and surviving spouse provisions. Our copy of the SPD is "Updated as of January 2012" Contact Fidelity to determine if there is a newer version.

There are at least two vintages of the EDS plan. Download the SPD from Fidelity that specifically applies to you -- based on when you left EDS.

For example, the "Updated as of January 2012" copy of the SPD does not apply if you left EDS before July 1, 1998. 
It says on page 1: "Benefits for participants who terminated from EDS before July 1, 1998 are subject to separate provisions not described in this SPD. For more information about these benefits, contact the HP Retirement Services Center."

If you left EDS on or after July 1, 1998 -- and have not cashed out or started taking the pension -- the account has been and will continue to grow at 5% per year. "Personal Pension Accounts ...continue to receive Interest Credits, even after ceasing to earn Pay-Based Credits. Your PPA is credited with Interest Credits at a predetermined rate thatís adjusted annually each January 1 subject to a minimum rate of 5% per year. Interest Credits continue to accumulate until your PPA is paid to you or converted to an annuity at retirement." [Page 9 of the Summary Plan Description.]

How to decode an SPD. (For example, many of the postal contact addresses given in SPDs are extinct.)  Decoding SPDs

Lump-sum payout offers:

- 2016: A pension buyout offer was made to those with a "lump-sum present value of your accrued benefit as of Aug 1, 2016" between $5K to $100K. 2016 Pension Lump-Sum Offer

- 2019: EDS folks with small pensions were offered lump-sum payouts -- apparently to reduce admin costs. "At the present time... the Plan does not allow lump-sum distributions for amounts over $5,000. We donít speculate if that policy will change. However, if Plan provisions do change to allow lump sums over $5000, affected participants will be notified via mail." --email in response to inquiry from an EDS alum, April 19, 2019. 

- 2020: A lump-sum pension buyout offer was made to some who have legacy DEC and EDS pension plans. Deadline was July 15, 2020; extended to July 22, 2020. Details: 2020 Pension Lump-Sum Offer

The EDS pension plan has survived the sale to GM in 1984, spin-out from GM in 1996, sale to HP, and the split of HP into HPInc and HPE.

One person referred to EDS founder Ross Perot on the EDS Alumni LinkedIn Group: "Ross is the gift that doesn't stop giving."

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