- EDS sale to Hewlett-Packard. In 2008, due to
declining growth and profits,
EDS stock was down to $19 from $72 in 2001. EDS management
and board negotiated a
$13.9 billion sale to HP at a 32% premium
-- which was completed Aug 26, 2008. (Founder Ross Perot retained 50% of the stock when EDS went public. GM contracts were 31% of revenue when he sold the company to GM in 1984. GM spun out EDS in 1996.)
- HP Breakup. HP Inc, Hewlett Packard Enterprise,
DXC, and Perspecta are completely separate companies. Details:
HP Breakup
- HP Inc. is the legal successor to the companies acquired by Hewlett-Packard before the company was
split into HP Inc and Hewlett Packard Enterprise on Nov 1, 2005. Responsibility for commitments to former employees of Compaq, DEC, EDS, etc.
remain with HP Inc. -- regardless of whether their last
business unit ended up in HP or HPE. Includes employment verification and any retiree health, pension, etc. plans. HPE is responsible for commitments to former employees of companies acquired by
HPE.
- At completion of the sale on Aug 26, 2008, EDS was
temporarily structured as a wholly-owned subsidiary called "EDS,
an HP Company."
On Sep 23, 2009, it was
renamed "HP Enterprise
Services."
DXC is a completely separate company
-- not a legal successor corporation to HP or HPE.
Which HP-related companies have me classified as a retiree or former employee?
Given HP's history of acquisitions and spinoffs, this may not be obvious. If any
doubt, check here:
Which Company
Make sure that the legal successor to 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 pension plan changes, employment
lawsuits, settlements, or other issues. Update
address at former company
For details of a U.S. employer retirement or health plan,
obtain a copy of the legal Summary Plan Description ("SPD"). Log into the plan administrator's website or call. They are required by
law to provide the SPD upon request. The current SPD takes precedence over any other written, online, or verbal information you may be given -- but is still subject to change.
How to use an SPD
Other benefits issues for EDS alumni -- including 401(k),
stock, HP and HPE retiree benefits, vehicle discounts. Death
or disability of a former employee.
https://www.hpalumni.org/edsBenefits
If you were employed in
the U.S. by EDS or "EDS, an HP Company" before Jan
1, 2009 -- you may have an EDS pension, administered by HP. 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"
"Before December 31, 2008, participation was open to
full-time and part-time employees who were employed by EDS
or an adopting U.S. subsidiary of EDS. Participation began
immediately upon being hired into an eligible
classification. Effective December 31, 2008, the Plan was
closed to new participants.
"Individuals classified by EDS in the following
classifications or other similar classifications were not
eligible for Plan participation:
- A resident or nonresident alien not subject to U.S.
federal income taxation;
- An employee eligible to participate in the EDS Puerto Rico
Savings Plan;
- An employee designated and paid as a leased employee,
consultant or independent contractor."
--from the HPAA's copy of the Summary Plan Description
(SPD.)
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 HP 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."
EDS Retirement Plan: "EDS Retirement Plan, a sub-plan of the Hewlett-Packard Company
Pension Plan" A
defined benefit plan.
- EIN: 94-1081436 -- Plan number: 003. Abbreviated as: 94-1081436-003
("EIN" = IRS Employer Identification Number.)
- HPAA's copy, which may be out of date:
EDS Retirement Plan Summary Plan Description
(SPD) [Browser tab displays: "HA Normal" -- where "HA" means
"Hewitt Associates."]
Log into the plan administrator's website or call.
They are required by law to provide the SPD upon request. (The mailing
about the 2020 EDS
lump-sum pension buyout offer did not include the SPD -- which
covers many
key details, including annual interest credit, QDRO, and
surviving spouse provisions.)
U.S.
The HP Retirement Service Center is the primary administrator for HP Inc U.S. pension and 401(k) accounts,
including any accounts for companies that Hewlett-Packard acquired before Nov 1, 2015 (Compaq, DEC, EDS, etc.) and that HP Inc acquired later (Poly, etc.)
Operated by Fidelity Investments.
1-800-457-4015 (Outside US 1-508-787-9902 collect.)
https://nb.fidelity.com (Don't go to a local Fidelity office.)
Key points:
Benefits depend on the choice the employee made. At
various times available pension options may have included
lump sum, monthly payment, reduced monthly payment with
survivor benefit, etc.
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") 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."
https://www.hpalumni.org/EDSRetirementPlanSPD-HP_Final_2012_HP_EDS_Retirement_Plan_SPD.pdf
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 that’s 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.]
HP lump-sum payout offers.
HP made several
lump-sum payout offers to specific segments of EDS retirees
over the years:
- 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
don’t 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
EDS Early
Retirement Offer. From the
2007 EDS Annual Report:
- 2007:
"We increased the
number of employees in Best Shore locations from
approximately 32,000 persons at the end of 2006 to
approximately 41,000 at the end of 2007... Our 2007
initiatives to increase capabilities in Best Shore locations
included the transfer of certain internal administrative
functions... We expect to significantly increase our
overall investment in workforce alignment in 2008 compared
to 2007. During the third quarter
of 2007, we announced an early retirement offer ("ERO") for
approximately 12,000 U.S. employees. Approximately 2,400
employees accepted the ERO. Employees accepting the offer
will receive enhanced retirement benefits payable through
normal payment options under the EDS Retirement Plan."
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