HP Retirement

Retirees are a vital part of the HP community and HP wants to help you stay connected. HP Retirement program allows retirees and employees to buy select HP products at a discount. The program is similar to other employee purchase programs in which employees pay for their choice of a particular product or service from a list of choices.

The HP Limited Retirement Benefits Plan

✅  About the Plan

The HP Limited Retirement Benefits Plan is an employee benefit plan that provides limited retirement benefits to eligible HP employees. Employees who are not in HP Retirement will not be eligible for this program.

✅  How the Plan Works

The Plan is optional. Employees and retirees who do not participate in the Plan can buy HP products and services at the same price as those employees and retirees who do participate. Participating employees and retirees will receive a special discount on HP products and services. They will offer those products and services at a special price to participating HP employees and retirees.

✅  Summary of Benefits

The HP Retirement Benefits Plan pays for an employee’s choice of an HP product or service at a specially discounted price. Eligible products and services include:

HP products, such as:

❖ HP printers
❖ HP ink cartridges
❖ HP toner cartridges
❖ HP toner
❖ HP desktops
❖ HP laptops
❖ HP displays
❖ HP printers
❖ HP ink cartridges
❖ HP toner cartridges
❖ HP toner
❖ HP servers
❖ HP network solutions
❖ HP desktops
❖ HP laptops
❖ HP displays
❖ HP office equipment
❖ HP printers
❖ HP ink cartridges
❖ HP toner cartridges
❖ HP toner
❖ HP servers
❖ HP network solutions
❖ HP desktop computers

HP services, such as:

❖ HP support
❖ HP networking
❖ HP services
❖ HP maintenance
❖ HP repairs
❖ HP cleaning
❖ HP warranty
❖ HP shipping

Whenever you buy a product or service through the HP Retirement Benefits Plan, it is yours to keep, and HP will not have access to it.

✅  The Trustee

The HP Retirement Benefits Trust is a Trustee-run program. As a financial advisor, trustee and Trustees’ designees will work with you to determine your retirement needs and provide appropriate products and services to help you meet those needs. The HP Retirement Benefits Trust will provide the service of helping you to choose the product or service that meets your needs and is the best value for all of your HP products and services.

Suppose you decide to participate in the HP Retirement Benefits Plan. In that case, your choice of product or service will be made by the HP Retirement Benefits Trustee, and it will be limited to the choices provided below. Any other product or service you purchase from HP on your own will be subject to the same price you pay for the HP Retirement Benefits Plan product or service.

My Benefits

✅  Overview

HP Retirement Benefits Plan My Benefits is designed to help you review the products and services you want to purchase from HP and to help you compare the costs of the products and services you select. The retirement benefits are designed to make it easy for you to decide which HP product or service you want to purchase.

✅  Your Annual Benefit Statement

Every year, you will receive an Annual Benefit Statement from the HP Retirement Benefits Trust to inform you about your benefits and help you identify which products and services you want to purchase. This statement will include: A list of products and services available to you:
➤   A comparison of the prices of the products and services you are eligible to purchase
➤   A list of your choices HP Retirement Benefits Trust’s recommendation of which products and services to        purchase

✅  When can I receive my pension?

If you retire, you will receive a letter from the HP Retirement Benefits Trust stating that your pension will start after age 65. The letter will tell you whether you are eligible for a pension and how much you will receive. You may be eligible for pension benefits if you are 55 years old or older when you retire. You will then receive monthly payments from the HP Retirement Benefits Trust. These payments will help supplement your pension. Some retired employees continue to receive their monthly payments even if they have not worked for HP for many years.

✅  Options at retirement

If you are 55 years old or older when you retire, you will have the option of continuing to receive your monthly payments after you stop working for HP, or you may choose to stop receiving your payments. You can make this decision before age 65, but you will not have any choice after you turn 65. You can only choose to stop receiving your payments before age 65. Please note: You will receive a refund of any payments you have received more than the amount you are receiving in your pension.

✅  Additional Voluntary Contributions

You can also decide to make Additional Voluntary Contributions (VCS) to help supplement your monthly payments from the HP Retirement Benefits Trust. You will be given a choice of how much to contribute when you retire. You can choose to contribute up to 5% of your salary, up to $10,000. This option is not limited to employees who participate in the HP Retirement.

Flexible Retirement

✅  Options available if you transfer out

When you have at least 25 years of service (including any years of service since age 55), you can transfer out of HP to another benefit plan. These benefits plans include:
➣  the Savings Plan
➣  the Thrift Savings Plan, and
➣  the HP Employees’ Benefits Plan.

You can choose to transfer out of your HP Retirement Benefits Plan.

✅  Buy A Pension on the Open Market

If you choose to transfer out of HP and you are 55 years old or older at the time, you can apply to the HP Retirement Benefits Plan for a pension. You can also purchase a pension based on your eligible pension at age 65. A pension on the open market If you have at least 25 years of service (including any years of service since you were age 55), you may be eligible for a pension based on the pension of a retired HP employee.

Buy A Pension on the Open Market You may purchase a pension based on your eligible pension at age 65. This pension is often referred to as a “buy a pension” pension. You may not receive a pension based on the pension of a retired HP employee. Purchasing a pension on the open market You can apply to the HP Retirement Benefits Plan for a pension if you are 55 years old or older at the time. You are not eligible to receive a pension based on the pension of a retired HP employee.

✅  Take All Your Benefits as Cash

You can choose to receive all your benefits in Cash instead of a pension. All benefits will be paid to you in cash. You will receive one check in January and the second check-in in September for all benefits you are eligible to receive. You don’t have the right to choose to receive a pension instead of Cash. The Cash you receive will be more than what you would receive if you choose to receive a pension.

✅  Take Flexible Retirement

Benefits as Cash You can choose to receive all your benefits in Cash. You will have the option to continue your benefits at retirement, or you may choose to stop receiving your payments. You can make this decision anytime before you turn 65. You will receive a letter from the HP Retirement Benefits Trust stating that your pension will start after age 65. You will receive monthly payments from the HP Retirement Benefits Trust. These payments will help supplement your pension.

Limits and Taxation

You cannot choose to receive fewer payments than you are eligible to receive. If you don’t retire, you will be eligible to receive all the payments you are eligible to receive.

✅  Your pension is taxed as ordinary income.

You may pay tax on your pension as ordinary income each year, or you may choose to pay tax on your pension in a different tax year. You cannot choose to receive more payments than you are eligible to receive. If you don’t retire, you will be eligible to receive all the payments you are eligible to receive.

✅  Your pension is taxed as ordinary income.

You may pay tax on your pension as ordinary income each year, or you may choose to pay tax on your pension in a different tax year. You cannot choose to receive fewer payments than you are eligible to receive. You will be eligible for all of the payments that you are owed if do not retire.

✅  Your pension is taxed as ordinary income.

You may pay tax on your pension as ordinary income each year, or you may choose to pay tax on your pension in a different tax year. You cannot choose to receive more payments than you are eligible to receive, and your pension is taxed as ordinary income.

Final Thought – IBM Retirement

There are several different options available to you, and you can decide which option you choose to receive. You may also have more than one option available if you are eligible to receive more than one pension. HOWEVER, the HP Retirement Benefits Trust will pay the same amount to you for any option you choose. You may choose to stop receiving your payments before age 65. You do not have to retire.

Link References:

https://www.hp.com/us-en/jobs/retiree/overview.html
https://jobs.hp.com/why-work-at-hp/