Feel the pension pot burn, Canadian DXCers
Matching staff contributions? Not from next year
Posted in The Channel, 24th October 2017 16:24 GMT
Exclusive DXC Technologies Canada will match only half the pension contributions made by former HPE Enterprise Services staff in yet another dramatic expenses purge.
The amounts funnelled into the ESIT Retirement and Savings Programme will be calculated differently from the start of next year, DXC told staff yesterday, in documents seen by The Register.
“Currently, the company matches 100 per cent of employee contributions, up to maximum of 5 per cent of eligible earnings,” DXC stated in a notification to staff.
“On January 1, 2018, the contribution formula will change so that the company will match 50 per cent of employee contributions, up to 6 per cent of each employee’s eligible earnings (for a maximum 3 per cent match),” the company added.
This means, for example, staff whose total contribution is 10 per cent (5 per cent personal contribution and 5 per cent from DXC), will need to cough 7 per cent themselves from next year to maintain the same level of savings.
A similar cost-cutting process is happening in the UK, but this largely affects ex-EDS staff that joined HP all those years ago, and are still on a final salary pension scheme since being transferred to DXC.
In a Frequently Asked Questions document – also seen by us – DXC said it was "harmonizing our different benefit programmes for the newly formed company" that was created by the spin-merge between HPE ES and CSC.
"Our goal in reviewing these plans was to ensure alignment across the Canadian workforce, while balancing cost and remaining competitive," the company FAQ stated.
Employees impacted by the revamp in Canada include anyone who moved to ESIT from HPE and who has a Defined Contribution pension.
The reduction in contributions will not affect the existing pot of money saved, the firm confirmed.
DXC is on track to slash overheads by $1bn this year through a combination of measures including redundancies and offshoring some roles to cheaper regions; data centre and office space consolidation; automation; vendor consolidation; and renegotiating supplier Ts&Cs. ®