HP 2015 Annual Report Download - page 117

Table of Contents
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

calculates its defined benefit pension cost and obligations. The fair value of plan assets and projected benefit obligations for the U.S. defined benefit plans
combined with the DPSP were as follows:
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HP sponsors retiree health and welfare benefit plans, of which the most significant are in the U.S. Under the HP Retiree Welfare Benefits Plan, certain pre-
2003 retirees and grandfathered participants with continuous service to HP since 2002 are eligible to receive partially-subsidized medical coverage based on
years of service at retirement. Former grandfathered employees of Digital Equipment Corporation also receive partially-subsidized medical benefits that are
not service-based. HP's share of the premium cost is capped for all subsidized medical coverage provided under the HP Retiree Welfare Benefits Plan. HP
currently leverages the employer group waiver plan process to provide HP Retiree Welfare Benefits Plan post-65 prescription drug coverage under Medicare
Part D, thereby giving HP access to federal subsidies to help pay for retiree benefits.
Certain employees not grandfathered under the above programs, as well as employees hired after 2002 but before August 2008, are eligible for credits
under the HP Retirement Medical Savings Account Plan ("RMSA") upon attaining age 45. Credits offered after September 2008 are provided in the form of
matching credits on employee contributions made to a voluntary employee beneficiary association. Upon retirement, former employees may use these credits
for the reimbursement of certain eligible medical expenses, including premiums required for coverage.

HP offers various defined contribution plans for U.S. and non-U.S. employees. Total defined contribution expense was $542 million in fiscal 2015,
$573 million in fiscal 2014 and $603 million in fiscal 2013.
U.S. employees are automatically enrolled in the HP 401(k) Plan when they meet eligibility requirements, unless they decline participation. The
quarterly employer matching contributions in the HP 401(k) Plan are 100% of an employee's contributions, up to a maximum of 4% of eligible
compensation.
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 
    
   


  


 
   
U.S. defined benefit plans $ 11,077 $ 12,716 $ 11,979 $ 13,756
DPSP 742 742 828 828
Total $ 11,819 $ 13,458 $ 12,807 $ 14,584
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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