NEWS2017

Funding Announcement for the EDS Retirement Plan & 1994 Scheme

2017-11-26

ES Spin-off news – £1.5 billion further protection for your pension benefits

Earlier this year Hewlett Packard Enterprise Corporation (HPE) announced plans to spin off and merge the Enterprise Services (ES) business with Computer Sciences Corporation (CSC) to create a new IT services business. The spin-off and merger is currently expected to complete by 1 April 2017.

Strengthening the ES Pension Plans

Hewlett Packard Enterprise Services UK Limited (HPES), as the sponsoring employer of the EDS Retirement Plan and EDS 1994 Pension Scheme (the ‘EDS Plans’) will transfer to the new ES/CSC Company as a result of the spin-off and merger. HPES* will remain the sponsoring employer of the EDS Plans. This will not affect the benefits that you have built up in the Plans or are receiving.

HPE and the EDS Plans’ Trustee have agreed the following package of measures to strengthen the financial position of the EDS Plans:

• A one-off payment to completely remove the EDS Plans’ funding shortfalls, estimated at around £1.2 billion.
• A further payment of £300 million to be split across the two EDS Plans.
• A new, lower risk investment strategy.

It is intended that the payments will be made, and the investment strategy put in place, this month.

As a result of these measures the Trustee has agreed that, having taken all appropriate professional advice, and following receipt into the EDS Plans of the payments referred to above:

• HPES will not need to pay any further contributions to the Plans for three years, and

• the current cap on the guarantee which the plans have from some of the company’s consolidated European businesses will be reduced from a cap of £2.2 billion to £400 million across the two EDS Plans, reflecting the improved funding position of the Plans.

The Trustee will continue to carry out its duties to monitor the funding level of the EDS Plans and the strength of the employer covenant supporting them.

* Please be aware that that company has changed its name effective today to EntServ UK Limited, with a further change of name possible after this company has left the Hewlett Packard Enterprise group and its new branding is confirmed.

HPE is very pleased to announce these measures, which we believe will put the Plans in a strong financial position. If you have any questions, you can submit these by emailing: pensionsuk2016@hpe.com

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