HPQ » Topics » Benefits

This excerpt taken from the HPQ DEF 14A filed Jan 27, 2010.

Benefits

        HP does not provide its executives or the NEOs with special or supplemental pension or health benefits. HP's NEOs receive health and welfare benefits (including retiree medical benefits, if the eligibility conditions are met) under the same programs and subject to the same eligibility requirements that apply to HP employees generally.

        Benefits under all U.S. pension plans were frozen effective December 31, 2007. No NEO or any other HP employee accrued a benefit under any HP U.S. defined benefit pension plan during fiscal 2009.

        The NEOs, along with other HP executives who earn base pay or an annual bonus in excess of certain federal tax law limits, are eligible to participate in the HP Executive Deferred Compensation Plan (the "EDCP"). This plan is maintained to permit executives to defer some of their compensation in order to defer taxation on such amounts. This is a standard benefit plan offered by most of HP's peer companies. It permits deferral of base pay in excess of the amount taken into account under the qualified HP 401(k) Plan and up to 95% of the annual incentive bonus payable under the PfR Plan. In addition, HP makes a matching contribution to the plan on a portion of base pay contributions in excess of IRS limits, in the same percentage as those executives are eligible to receive under the HP 401(k) Plan. This permits these executives to receive a 401(k)-type matching contribution on a portion of base-pay deferrals in excess of Internal Revenue Service ("IRS") limits. Amounts deferred or matched under the EDCP are credited with investment earnings based on investment options selected by the participant from among mutual and proprietary funds available to employees under the HP 401(k) Plan. No amounts earn above-market returns.

This excerpt taken from the HPQ DEF 14A filed Jan 20, 2009.

Benefits

        HP does not provide its executives or the NEOs with special or supplemental pension or health benefits. HP's NEOs receive health and welfare benefits (including retiree medical benefits, if the eligibility conditions are met) under the same programs and subject to the same eligibility requirements that apply to HP employees generally.

        Pension accruals ceased for most U.S. employees at the end of 2005 and for the remaining U.S. employees at the end of 2007. These changes applied equally to the NEOs. As a result, effective January 1, 2008, no U.S. employees, including the NEOs, earned any pension benefits, but they were instead eligible for a 6% matching contribution under the HP 401(k) Plan.

        The NEOs, along with other HP executives who earn base pay or an annual bonus in excess of certain federal tax law limits, are eligible to participate in the HP Executive Deferred Compensation Plan. This plan is maintained to permit executives to defer certain elements of compensation in order to defer taxation on such amounts. This is a standard benefit arrangement commonly offered at HP's peer companies. It permits deferral of base pay in excess of the amount taken into account under the qualified HP 401(k) Plan and up to 95% of the annual incentive bonus payable under the PfR Plan. In addition, HP makes a 6% matching contribution to the plan on behalf of executives who no longer earn pension accruals. This permits these executives to receive a 401(k)-type matching contribution on certain amounts in excess of Internal Revenue Service ("IRS") limits. Amounts deferred or matched under the HP Executive Deferred Compensation Plan are credited with investment earnings based on investment options selected by the participant from among mutual and proprietary funds available to employees under the HP 401(k) Plan. No amounts earn above-market returns.

This excerpt taken from the HPQ DEF 14A filed Jan 29, 2008.

Benefits

        HP does not provide its executives or the NEOs with special or supplemental pension or health benefits. HP's NEOs receive health and welfare benefits (including retiree medical benefits, if the eligibility conditions are met) under the same programs and subject to the same eligibility requirements that apply to HP employees generally.

        Likewise, HP's NEOs participate in retirement programs on the same terms and conditions as apply to HP employees generally. Pension accruals ceased for most U.S. employees at the end of 2005 based on objective age-plus-service criteria and for the remaining U.S. employees at the end of 2007. These changes were made to bring HP's overall benefit costs in line with those of its peer companies, and these changes applied equally to the NEOs. As a result, pension accruals ceased for Mr. Hurd and Mr. Robison as of December 31, 2005, and for the remaining NEOs on December 31, 2007, with respect to both the qualified and non-qualified (excess) portions of HP's U.S. defined benefit pension plans. U.S. employees who did not accrue a pension benefit during fiscal 2007, including Messrs. Hurd and Robison, were eligible for a higher matching contribution in the HP 401(k) Plan. This higher 401(k) matching contribution will be available to all covered U.S. employees, including Mr. Joshi, Ms. Livermore and Ms. Lesjak, beginning in 2008.

        The NEOs, along with other HP executives who earn base pay or an annual bonus in excess of certain federal tax law limits, are eligible to participate in the HP Executive Deferred Compensation Plan. This plan is maintained to permit executives to defer certain elements of compensation in order to defer taxation on such amounts. This is a standard benefit arrangement commonly offered at our peer companies. Specifically, the plan permits deferral of base pay in excess of the amount taken into account under the qualified retirement plans and up to 95% of the annual incentive bonus payable under PfR. In

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addition, HP makes a 6% matching contribution to the plan on behalf of executives who defer base pay contributions to the plan and who no longer earn pension accruals. This permits these executives to receive a 401(k)-type matching contribution on certain amounts in excess of IRS limits, comparable to the matching contribution that is received on base pay up to the applicable IRS limit under the HP 401(k) Plan. Amounts deferred or matched under the HP Executive Deferred Compensation Plan are credited with investment earnings based on investment options selected by the participant from among mutual and proprietary funds available to employees under the HP 401(k) Plan. No amounts earn above-market returns.

This excerpt taken from the HPQ DEF 14A filed Jan 23, 2007.

Benefits

        HP's global benefits philosophy for employees, including executive officers, is that benefits should provide employees protection from catastrophic events, should enable employees to plan for their futures, and should be competitive in local markets in order to attract and retain a high-quality workforce. The cost of providing benefits to employees has continued to increase in the U.S. due to factors such as rising healthcare costs.

        HP's executive officers receive health and welfare benefits under the same programs and subject to the same terms and conditions as are available to HP employees generally. In the U.S., this includes the

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standard range of health benefits, including medical, dental and vision benefits, as well as coverage for life insurance, disability, accidental death and disability.

        Likewise, HP's executive officers participate in HP's retirement programs on the same terms and conditions as are available to HP employees generally, including 401(k) eligibility for all U.S. employees, and pension coverage for certain grandfathered groups.

        In fiscal 2006, HP made a number of changes that will reduce both its U.S. pension and medical benefit costs relating to HP's executive officers as well as other employees. Effective December 31, 2005, U.S. employees with fewer than 62 age plus years of service points ceased accruing additional pension benefits. All U.S. employees were subject to these changes, including executive officers. In addition, HP implemented a cap on the extent to which it will subsidize retiree medical benefits for both current and future retirees.

        In connection with the 2006 pension benefit changes, HP increased the company matching contribution under the HP 401(k) Plan from 4% to 6% for U.S. employees who ceased accruing pension benefits. In addition, U.S. employees who ceased accruing pension benefits may receive a 6% matching contribution under the HP Executive Deferred Compensation Plan with respect to some compensation in excess of certain IRS limits that may not be contributed to the HP 401(k) Plan.

This excerpt taken from the HPQ 8-K filed Sep 28, 2006.
Benefits: You will receive a payout of any accrued retirement benefits that are applicable, this includes: 401k savings and US Pension Benefits (including but not limited to the HP Excess Benefit Plan).   Please note that you may be able to rollover some of the retirement payouts into a qualified account to preserve favorable tax treatment.  In addition, you will receive a cash payment of the balance of your unused vacation time.

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This excerpt taken from the HPQ DEF 14A filed Jan 23, 2006.

Benefits

        HP's global benefits philosophy for employees, including executive officers, is that benefits should provide employees protection from catastrophic events, should enable employees to plan for their futures, and should be competitive in local markets in order to attract and retain a high-quality workforce. The cost of providing benefits to employees has continued to increase on an industry- and economy-wide basis due to factors such as rising healthcare costs. In July 2005, to address these costs and promote HP's long-term health, the full Board determined, based on the recommendations of the Committee, that U.S. employees with fewer than 62 age plus years of service points as of December 31, 2005 would no longer be eligible to

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accrue benefits under the HP Retirement Plan and the related HP Excess Benefit Retirement Plan4, or the HP Cash Account Pension Plan and the related HP Cash Account Restoration Plan5. Messrs. Hurd, Bradley and Mott will not have 62 age plus service points at December 31, 2005, and therefore, like other similarly-situated employees, will no longer accrue benefits on or after January 1, 2006. In lieu of these benefits, employees with fewer than 62 points and newly-hired employees will be eligible to receive a 6% matching contribution under the HP 401(k) Plan.

        HP maintains a non-qualified deferred compensation plan, the Hewlett-Packard Company Executive Deferred Compensation Plan ("EDCP"), that is unfunded and unsecured and allows certain high-level employees, including executive officers, to voluntarily defer receipt of their salary above specified amounts and bonus payments under the Pay-for-Results Program into bookkeeping accounts established under the EDCP. EDCP accounts are credited with hypothetical earnings, as if invested in funds available under the HP 401(k) Plan, as selected by each participant.

This excerpt taken from the HPQ 8-K filed Feb 22, 2005.
Benefits: You will receive a payout of any accrued retirement benefits that are applicable, this includes: tax and US Pension Benefits.  Please note that you may be able to rollover some of the retirement pay outs into a qualified account to preserve favorable tax treatment.  In addition, you will receive a cash payment of the balance of your unused vacation time.

 

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This excerpt taken from the HPQ DEF 14A filed Feb 11, 2005.

Benefits

        The global benefits philosophy is that health and welfare benefits should provide employees protection from catastrophic events and should be competitive in local markets. Employees generally are responsible for managing benefit choices, balancing their own level of risk and return.

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