Compaq and Employee Benefit Plans
Compaq's termination of disabled employees and slashing these employee's financial and health care security


"Dear Disabled Employee"

"Dear Disabled Employee" II


The "transition obligation"

Plan Details

The Disclaimer


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Plan Details

It is not feasible to reproduce the the Digital's employee manual in it's entirety on these pages. The two most relevant pages are reproduced below and should allow the reader to understand the benefits represented in writing to employees.

The following is from the 1988 Digital employee benefit manual and the identical wording appeared in the manual for many years.


Page 5.13

Exceptions: Circumstances not covered by the LTD Plan

You would not be covered by the LTD Plan if you were disabled because of:

· Intentionally self-inflicted injury or attempted suicide.

· War or acts of war.

How long you can receive long-term benefits

While you are disabled, LTD payments will continue:

· Until you reach age 65, if your disability began before age 60.

· For five years or until you reach age 70 (whichever occurs first), if your disability started after age 60. (In no event will you receive less than one year of benefit.)

· For one year, if you become disabled after age 70.

Two exceptions will change how long you receive payments. Your LTD benefit will stop after 24 months of LTD payments:

· If after that time you can return to an occupation for which you are reasonably qualified by education, experience or training, even if it is not your current job.

· For a disability attributed to a mental or nervous condition, including alcohol and drug dependence.

If you have exhausted your LTD benefits because of the two exceptions listed above, you have to periodically submit to Digital evidence of disability so that company-sponsored benefits, with the exception of SAVE and ESPP, can be continued as if you were collecting Digital's LTD benefits.

Page 5.21

If you're receiving long-term If you're receiving long-term disability benefits from Digital, the status of disability most of your benefits continues as if you were working:

· Any payroll deductions you make for your (and your dependents') medical, dental, optional and dependent life insurance plans are waived; Digital pays the full cost of their coverage for you.

· You cannot switch medical plans.

· Sick days do not accrue.

· If you remain disabled for more than two years and are eligible for Social Security benefits, you may be eligible for Medicare regardless of your age.

For more detailed information, see page 3.53.

· To learn how long-term disability affects your enrollment in the Employee Stock Purchase Plan, contact Investor Services. (See page R.1.)

· If you were a member of the SAVE Plan, you can't continue contributing to the plan through weekly payroll deductions. The savings you have accrued to this point are yours and will be made available when you are at least age 591/2. If you want to get your money sooner, or if you have any questions about the SAVE Plan, contact the Plan Administrator at the address listed on page 12.5.

· At age 65, you're eligible for 65% of the Basic Life Insurance or Optional Life Insurance Plan coverage you had before your 65th birthday. At age 70, you're eligible for 65% of the amount you carried before your 70th birthday.

· Vacation days are earned up to the maximum allowed for your length of service, but may not be taken until you return to work. If you die, earned vacation pay goes into your estate.

· Your Pension Plan service and benefits continue to accrue according to your base rate of pay before you became disabled.

Again, you cannot take advantage of any new benefit plans that become available, or make any change to your plans (such as adding dependent coverage except for a newborn child), until you return to work full-time. Also, you won't receive any salary increases because Digital grants such increases only for performance on the job.


Click here for a scanned version of page 5.13 , page 5.21 in browser

Click here for a PDF version of page 5.13 , page 5.21 (Adobe Acrobat format) for printing

The reader can make his/her own conclusion as to the clarity and obligations expressed by Digital.

The Disclaimer

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