Business

The Channel

Feel the pension pot burn, Canadian DXCers

Matching staff contributions? Not from next year

By Paul Kunert

10 SHARE

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. ®

Sign up to our NewsletterGet IT in your inbox daily

10 Comments

More from The Register

DXC Technology bids $2bn for Swiss big cheese Luxoft

Alles ist gut

DXC hit with sueball over layoff steamroller's share price dip

El Reg namechecked as lawyers claim investors 'misled'

Now DXC yourself to the door: Another exec exits outsourcing giant

Frankenfirm waves bye to App Services boss: Time to canter Klaus

DXC Technology turns to BT Security to nab its infosec bossman

Waves bye to yet ANOTHER HPE exec, internal memo confirms

DXC's Americas CFO splits amid yet more deckchair shifting

Matt Neisler gets a brief goodbye in company memo

DXC share price tumbles on El Reg bombshell of Americas boss ejection

We are in the dark period (before our Q2 results are released) – outsourcing titan

Deck the halls with ... oh, no. DXC tells staff they may not have a job in the New Year

Depressing Xmas Comms which employees have whole holiday to think about

DXC will be damned if it lets cloud cannibalise the IT outsourcing biz before DXC does

Frankenfirm sets up 'integrated practice' with AWS to eat its lunch before others do

DXC axes Americas boss amid latest deck chair musical

Exclusive Karan Puri just one of 36,000 staff to leave broken outsourcing biz in 18 months

DXC CEO confirms boss of its field-based techies is OUT

Exclusive Steve Hilton exit suddenly confirmed on 21 July, new boss in situ on 23 July