$45.4 billion in retirement assets affected by HP split announcement
Published: October 6, 2014 - Pensions & Investments
Hewlett-Packard Inc.'s plan to split into two companies will affect its $45.4
billion in combined worldwide defined benefit and defined contribution
assets.
HP, based in Palo Alto, Calif., announced Monday it plans to split into two
companies, Hewlett Packard Enterprise and HP Inc.
Information was unavailable on how HP will split its retirement program
assets and liabilities between the two companies.
Broken down, HP had as of Oct. 31, 2013, U.S. defined benefit assets of $12.5
billion and liabilities of $11.9 billion, while its non-U.S. defined benefit
assets totaled $16.1 billion and liabilities, $19.2 billion, according to its
Form 5500, filed with the Department of Labor and a 10-K report, filed the
Securities and Exchange Commission.
HP froze its U.S. defined benefit plan in 2008.
HP's 401(k) plan had $16.8 billion in assets as of Dec. 31, according to its
most recent 11-K filing. Bank of New York Mellon is the 401(k) plan's record
keeper and trustee.
HP's 401(k) managers include BlackRock, which managed $3.4 billion in four
investment funds; Vanguard Group, $1.5 billion in two funds; Pacific Investment
Management Co., $718 million in 10 funds; Dodge & Cox, $528 million in one
fund; and Dreyfus, $301 million in one fund, according to its 11-K.
Other managers of HP's 401(k) assets were J.P. Morgan Asset Management and
Lazard Asset Management, each with $231 million; Investec Asset Management with
$88 million and Highbridge Capital Management, $85 million.
A participant-directed brokerage window had $416 million in 401(k)
assets.
The 401(k) participants had $524 million in HP stock.
The current company — which has 317,500 employees worldwide — plans to
complete its split by Oct. 31, 2015, the end of its next fiscal year.
The split is subject to shareholder approval. Shareholders will receive stock
in both new companies in place of their current HP shares.
Gretchen Tai, HP vice president, global treasury, and chief investment
officer, and Sarah Pompei, HP spokeswoman, couldn't be reached for comment.
Original Story Link: http://www.pionline.com/article/20141006/ONLINE/141009912/454-billion-in-retirement-assets-affected-by-hp-split-announcement