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HR
To: All U.S. Employees Including Puerto Rico
Dear Colleagues,
As I shared with you previously, Abbott and AbbVie will have the same benefits at the time the businesses separate and will continue these through 2013. Both companies reserve the right to make changes in the future, though none are planned. That said, let me share some additional details about how the transition will be handled for both companies.Let me start with retirement benefits. First, regardless of whether you are employed by Abbott or AbbVie, your current retirement benefits will be the same up to and following the separation and through 2013. In other words, nothing changes due to the separation. If you are contemplating retirement, you should plan to retire when you are ready to do so, not because of speculation around your benefits due to the upcoming business separation. Pensions: As previously communicated, both companies plan to continue to provide pension benefits as they do today. Either company could make changes in the future, though none are planned. As a reminder, pension benefits you have earned are protected by law.For employees of Abbott, no changes are planned. Benefits will continue to be provided through plans sponsored by Abbott. The benefits, options, and formulae will be the same as the benefits currently provided. The responsibility and associated funding for the benefits that Abbott employees have earned prior to separation will remain with Abbott. Any benefits earned prior to global separation, along with benefits earned in the future during your post-separation employment, will be provided through Abbott's plans. For employees of AbbVie, no changes are planned. The benefits, options, and formulae will be the same as the benefits currently provided under the Abbott plans. Administratively, benefits will be provided through plans established and sponsored by AbbVie. The responsibility and associated funding for the benefits that AbbVie employees have earned prior to separation will be moved to the AbbVie plans. Any benefits earned prior to global separation, along with benefits earned in the future during your post-separation employment, will be provided through AbbVie's plans.For current retirees and vested former employees who will be receiving a benefit in the future from the Annuity Retirement Plan (ARP), there are also no changes planned. The benefits, options and formulae will be the same as the benefits currently provided under the ARP. Abbott and AbbVie will share the responsibility for benefits for current retirees and vested former employees who left before the separation. There will be no interruption to the payment and no change in the form of the benefits; benefits will be provided to recipients in the same way they are currently provided. For current retirees and vested former employees who will be receiving a benefit in the future from the Knoll/Solvay Plan or the Puerto Rico Plan, there are no changes planned. The benefits, options and formulae will be the same as the current benefits. Administratively, the responsibility and associated funding for these benefits will move to AbbVie. There will be no interruption to the payment and no change to the form of the benefits; benefits will be provided to recipients in the same way they are currently provided. If you move from one company to the other, without a break in service during this time period, your prior service will be recognized for your pension benefit and your new employer will be responsible for all of your retirement benefits when you eventually retire. Prior service will be recognized for other benefits and programs as well.
If you retire or terminate from one company (either before or after the global separation) and are later hired by the other company within two and one-half years of the separation, you will be treated as a rehire to that company and service credit for benefits and programs will be determined by policies in place at the time of rehire. Your new employer will be responsible for all of your retirement benefits when you eventually retire. This includes benefits earned prior to the time you retired or terminated as well as any benefits you earn at your new employer. If you are hired by either company more than two and one-half years after the separation, you will be treated as a new hire and your priorAfter 2013, each company will determine its approach to this program. However, no changes are planned at this time.
Movement Between the Companies after Separation. After the global separation, Abbott and AbbVie will be two separate companies, and as such, we expect movement between the companies to be rare. However, in recognition of our shared heritage, we will use the following guidelines to manage appropriate movement between the companies.
For two and one-half years after the separation, hires between Abbott and AbbVie may occur with the approval of both heads of human resources. If you move from one company to the other, without a break in service during this time period, your prior service will be recognized for your pension benefit and your new employer will be responsible for all of your retirement benefits when you eventually retire. Prior service will be recognized for other benefits and programs as well.
If you retire or terminate from one company (either before or after the global separation) and are later hired by the other company within two and one-half years of the separation, you will be treated as a rehire to that company and service credit for benefits and programs will be determined by policies in place at the time of rehire. Your new employer will be responsible for all of your retirement benefits when you eventually retire. This includes benefits earned prior to the time you retired or terminated as well as any benefits you earn at your new employer. If you are hired by either company more than two and one-half years after the separation, you will be treated as a new hire and your prior employment period will not be recognized.
Finally, our current process requires that if you terminate from Abbott and collect retirement benefits, you must wait at least six months before you can be hired. This six-month wait will apply if you seek to be hired by either Abbott or AbbVie.
As you can see, we have made every effort to maintain the same benefits and programs through 2013 so that you can focus on your opportunity with either Abbott or AbbVie without worrying about these items. We will continue to keep you posted as more information is available.
If you have any questions, please contact your local myHRTeam.
Best regards,
Stephen R. Fussell
Senior Vice President, Human Resource
