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U.S. Pension Transition 2021

Advice and reference info from members. (Updated Sep 28, 2021 am.) Website operated by former employees. Comments welcome. Do not send personal information to us. info@hpalumni.org

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If you have been receiving monthly payments from an HP pension plan...

From the independent HP Alumni Association. (Operated by volunteers. Not officially endorsed or supported. No charge, thanks to HPAA members.)
Web copy of this article: https://www.hpalumni.org/pension2021


If you have been receiving monthly U.S. pension payments that commenced on or before November 1, 2020 -- your HP, DEC, or EDS pension plan may have been converted from a pension to an annuity, without changing the amount and terms of your benefits. Alumni report that the complete notification did not reach everyone affected.

Update Sep 20:

- A member who expected to get the notice -- but did not -- called Fidelity: "I asked what the determination was between who stayed with Fidelity and who was going to be administered by Prudential. She said HP made the determination based on the number of plans that Prudential could accept. She assured me that as of November 1, my payments will continue to come from Fidelity."

- Still not clear why some people received only the one-page "Update" on HP letterhead sent via U.S. Mail. (Perhaps this was due to porch theft of FedEx packages that recipients were not expecting and therefore not watching for.) If you got the one-page update but did not receive the complete five-page notice via FedEx in August, log into your Fidelity account and download it. https://netbenefits.fidelity.com


Update Sep 28:

The "Updated HP pension benefit transition notice" has been posted on the HP Continuum site:
 On Continuum site   Copy

Action:


If you have a U.S. HP, DEC, or EDS pension plan and have been receiving monthly payments that commenced on or before November 1, 2020
-- and you did *not* receive a FedEx envelope on Aug 27 with a five-page "HP pension benefit transition notice" --
you should log into your Fidelity account to determine if the pension change applies to you. If so, download the five-page notice and FAQ.
https://netbenefits.fidelity.com

(If you can't log in, or you have questions after reading the notice, call Fidelity at 1-800-457-4015 from 7:30 a.m. to 11:00 p.m. Central Time, Monday through Friday.)

Be sure to check that Fidelity has your current postal address.

The HP notice says:

"...we are transferring the administration and payment obligation of your pension benefit to Prudential through the purchase of a group annuity contract... The group annuity contract covers most eligible retirees, their surviving beneficiaries, and alternate payees receiving monthly pension payments from the Pension Plan that commenced on or before November 1, 2020."

"The amount and terms of your benefits will remain the same as your current benefits. This change will happen automatically effective November 1, 2021. You are not required to take any action. Payments made to your bank via direct deposit will continue without interruption. You will receive a Welcome Kit from Prudential in mid/late October..."

The HP notice includes a detailed four-page FAQ, including "How will my pension benefit be protected."

HPAA comments based on online and offline discussions:

- A one-page "Update" on HP letterhead was sent by Fidelity via U.S. Mail around Sep 10. If you got the one-page update but did not receive the complete five-page notice via FedEx in August, log into your Fidelity account and download it. https://netbenefits.fidelity.com

- This change applies only if you have been receiving monthly pension payments that commenced on or before November 1, 2020. HP has made no statement as to if, or when, a similar change might apply to other participants.

- A retiree who expected to get the notice -- but did not -- called Fidelity: "I asked what the determination was between who stayed with Fidelity and who was going to be administered by Prudential. She said HP made the determination based on the number of plans that Prudential could accept. She assured me that as of November 1, my payments will continue to come from Fidelity."

- The non-profit Pension Rights Center discusses the records you should keep about your pension -- and the underlying insurance coverage differences between a pension and an annuity: https://www.hpalumni.org/pensionrights

- For any retirement or health plan, the details are given in the Summary Plan Description -- a legal document that takes precedence over any other written, online, or verbal information you may be given. The plan administrator is required to provide an SPD for your specific plan upon request -- generally by logging into your account. (Member advice on interpreting SPDs: https://www.hpalumni.org/SPDs )

- Acquired companies. EDS pensions are legal obligations of HP Inc. -- regardless of whether the employee's last business unit ended up in HP Inc. or HPE. DEC pensions have been paid since 1998 by Compaq and now by HP Inc. Other acquired companies did not have pension plans and had not built up pension trust funds to pass to an acquiring company. Employees of those companies did not get credit under HP's pension program for service at the predecessor company.
 

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The independent HP Alumni Association is operated by former employees who volunteer their time. Not officially endorsed or supported.
No charge, thanks to HPAA members. https://www.hpalumni.org

rev 9/20/21 am


If you were formerly a regular, direct employee of HP or HPE -- or are in the process of leaving -- join the HP Alumni Association. Membership is also open to heirs with HP-related stock and to those receiving company benefits -- spouses, partners, dependents, DEC and EDS retirees. No charge, thanks to HPAA members.

As financial, legal, and personal advice must be tailored to the specific circumstances of each case, and finances and laws are constantly changing, nothing provided here should be used as a substitute for the personalized advice of competent financial, legal, and personal advisors.


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