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I was a former Electronic Data Systems (EDS) employee before…

Customer Question
I was a former...

I was a former Electronic Data Systems (EDS) employee before EDS was sold to HP. I have a small pension (~$82k) that I would like to take as a lump-sum, but HP is saying that old, EDS employees can ONLY annuitize their pensions, and not take them lump-sum. Is there any way around this?

Lawyer's Assistant: Have you documented this or discussed it with HR?

No, not yet.

Lawyer's Assistant: Is the employment agreement "at will," union, full time or part time?

Not sure. I was a full-time employee at EDS before I left the company.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

No. Thank you!

Submitted: 8 months ago.Category: Employment Law
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Answered in 5 minutes by:
9/25/2017
Employment Lawyer: Legal Eagle, Lawyer replied 8 months ago
Legal Eagle
Legal Eagle, Lawyer
Category: Employment Law
Satisfied Customers: 12,232
Experience: Licensed to practice before state and federal court
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Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today. Do you mind if I take a moment to review your question?

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Employment Lawyer: Legal Eagle, Lawyer replied 8 months ago

Thank you very much for your patience. The prenuptial agreement in the will are generally going to be two separate things. Depending on what's in the prenuptial agreement, It may affect what's in the will. For example, if what was in the prenuptial agreement was that all of the property that your father had was never going to be a part of the marital estate, then the other person may not be able to make any claim to it. On the other hand, if your father put in the will that even know the property would remain separate during the marriage, but after his death the property would go to the new wife, then the will is going to control. So, unfortunately so much of this depends on what was in the prenuptial agreement and what was in the will. On balance, the court is going to look at what was in the will because people have to make wills when they were of sound mind and body. This means that your father could have easily decided to give away as property. Even if it was property that he had from his first or even second marriage, if it's his property and he decides to give it away a death, then he can give it away. What are the questions did you have from you regarding this?

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Employment Lawyer: Legal Eagle, Lawyer replied 8 months ago

Goodness, please forgive me that answer was for another customer. Bear with me one moment while I address your question.

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Employment Lawyer: Legal Eagle, Lawyer replied 8 months ago

Okay, thank you very much for your patience. The only way that you're going to get around this is dependent upon the terms of the agreement between your old employer and Hewlett-Packard. If the agreement said that the Eds employees are only allowed to annuitize their pensions even after the buy out, then that is what is going to have to be the case. Now, the best argument that you can make could be a violation of the implied Covenant of good faith and fair dealing. Under the Uniform Commercial Code Section 1-304, every contract comes with implied promises from both parties that they are going to be acting fairly toward one another. The failure of one party to act fairly toward the other can result in a breach of contract. To facilitate your situation, there’s a site that I’ve used in the past where you can find a good template for advising of a breach of contract (click here). It's a bit easier (and cheaper) than going through litigation and I have seen it be effective in the past. If you send this letter and they do not respond, then you may want to consider bringing a lawsuit after that because it will be clear they will not be willing to settle the issue. What other questions did you have from you regarding this?

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Customer reply replied 8 months ago
By 'both parties' do you mean the contract between EDS and HP at that time?
Employment Lawyer: Legal Eagle, Lawyer replied 8 months ago

Yes, that's correct. It'll be important to understand the terms of pensions for transferring employees to EDS. Ask around and see if other EDS employees are getting lump sums because that could help your argument. Did you have any other questions for me?

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