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Digital Equipment Corporation
111 Powder Mill Road
Maynard, Massachusetts USA
01754-1418
December 11, 1998
Dear Disabled Employee:
This letter is a follow-up to the letter that was
sent to you on September 28, 1998 regarding your status as a result
of the acquisition of Digital by Compaq.
Your employment will terminate effective December
31, 1998. The termination will be processed by the Human Resource
Administration Center. There are no forms that require your signature.
As indicated in the September 28, 1998 letter, Compaq
will continue to provide medical, dental, and life insurance benefits
for you and your eligible dependents. While it is the intent to
provide these benefits into the future, Compaq, like Digital, reserves
the right to terminate or amend benefits including existing plan
provisions and coverages.
You will receive pension credits for the quarter
ending December 31, 1998. Beyond that date, you will receive interest
credits only to your Cash Account Pension Plan balance. As a terminated
employee you will have the right to access your account balance.
In order to avoid a negative impact on your disability income benefit,
you must leave your balance in the plan or transfer your account
balance to another qualified plan or an IRA. If you elect to directly
access the funds, this action will impact your disability income
benefit. If you are receiving an income benefit from UNUM or Liberty
Mutual, your income benefit will be coordinated with your pension
benefit. If you have questions on how these benefits will coordinate
please call UNUM or Liberty Mutual directly. If you are receiving
an income benefit from Prudential, that income benefit will cease
if you access your pension benefit in a form other than a rollover
to an IRA or another qualified plan.
The termination of your employment does not impact
any unexercised stock options that you might have. You may exercise
your vested options at any time until they expire. If you have accrued
vacation, you will receive payment within two weeks of your termination
date.
If you are eligible to retire on the date of your
termination, i.e., you are at least 55 years old with 10 or more
years of service, the status of your benefits is as follows:
You will continue to receive medical, dental, and life insurance
coverage provided by Compaq for as long as you continue to receive
a disability income benefit. When your disability income benefit
ceases, you will then be eligible for health care and dental coverage
as a retiree. You will be required to pay the retiree premiums in
place at the time your coverage under these plans becomes effective.
Please note that there is no retiree life insurance coverage.
Compaq will be implementing a process to review
and monitor those claims where an income benefit is not being paid
by an insurance carrier either due to a benefit payment limitation
or to the employee not having purchased LTD coverage. The purpose
of this review is to ensure that those individuals in this category
continue to meet the eligibility requirements for disability. If
this applies to you, you will receive more information about this
review process within the next few weeks. If you do not comply with
the process, your eligibility for medical, dental, and life insurance
benefits will cease (other than as may be available on a continuing
basis as a retired employee).
If you have questions about any of your benefits
including your pension and SAVE account balances, please contact
Benefits Express at 1-800-890-3100. For questions regarding your
termination, please contact the Human Resource Administration Center
at
1-800-544-9944.
Sincerely yours,
Karen J. Nelson
U.S. Disability Program Manager
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