The restructuring followed Palo Alto, Calif.

The planning, execution and employee-education effort took time. Although Hewlett-Packard closed its purchase of Plano, Texas-based EDS in Augustthe consolidated plan took effect at the beginning of HP officials spent the time in between not only analyzing the elements of both DC plans but also developing a strategy to reduce costs, consolidate record keepers and reduce redundant options.

Tai, who declined to quantify the savings. For some investment options, Ms. Tai said HP uses the same managers for its DC plan as its defined benefit plan, but she declined to identify the managers or the assets they manage.

The old HP plan was closed to new employees at the end of ; the EDS plan was closed to new employees at the end of The combined k plan has 19 investment options available through five tiers.

Hewlett-Packard Company (k) Plan | MyPlanIQ

By contrast, the old Hewlett-Packard plan had three tiers of options with 29 investment choices; the EDS plan had four tiers with 15 options. From the EDS plan, HP imported a self-directed brokerage window and passively managed investment options.

Hewlett Packard Enterprise | HPE - K Plan employé | omotohu.web.fc2.com

Tier I is a custom target-date option pegged to an individual's birth date rather than to a projected retirement date. Tai of the birth-date link. The EDS plan offered three balanced funds but no target-date funds. Tier II is a group of six actively hp 401 k plan investment options core options — money market, short-term bond, core bond, large-cap equity blend, international developed and emerging equity markets, and a small-midcap equity blend.

These options are separate accounts. All are run by a single manager, which Ms. Tai declined to identify. Most of these options are hp 401 k plan investment options accounts; some are collective trusts. Another extended choice is company stock. Tier V is a self-directed brokerage window with 8, mutual funds. The EDS plan had a brokerage window; the old HP plan did not. The company drew the line at offering exchange-traded funds and individual stocks in the brokerage window, said Wendy Sergeant, manager of accounting and operations.

Although both the related diversification strategy ppt HP and EDS plans offered stable value options, the consolidated plan does not. Tai said stable value was dropped because executives were concerned about the rising cost of wrap fees — the insurance that guarantees investors will receive book value for the collection of bonds in the stable value funds.

They also were concerned about availability of wrap insurance in the marketplace and about restrictions on certain investment choices required by wrap contracts, she said.

Among other options dropped: She wouldn't identify the managers. When plan executives decided to create a consolidated kHewlett-Packard also chose a single record keeper, Fidelity Investments. Fidelity was HP's record keeper and J. Morgan Retirement Plan Services LLC was EDS'.

The company issued an RFP, and both were among the five finalists. Tai added that HP executives continue to look at other investment options.

HP k Savings Plan Fund Rotation Strategy

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