IBM to Freeze $48B Pension Plan in 2008

[LSK]

"Furthering corporate America's move away from pensions, International Business Machines Corp. said Thursday it will freeze its $48 billion pension plan in 2008 and instead enhance its 401(k) benefits for its 125,000 U.S. workers.

Nearly all IBM's U.S. employees — everyone hired before Jan. 1, 2005 — have pension benefits accruing under a traditional annuity-like plan or a cash-balance plan, which gives workers interest-bearing funds that they can take with them if they leave the company."

snip

"Beginning in 2008, then, IBM workers' pension benefits will be locked in place, based on salary and length of service. The accrual of benefits will stop, meaning future raises or additional years with the company will not signify bigger pension checks upon retirement."

http://news.yahoo.com/s/ap/20060105/ap_on_bi_ge/ibm_pensions

Meanwhile

Mr. Samuel J. Palmisano , 54
Chairman, Chief Exec. Officer and Chairman of Exec. Committee $ 6.84M

Mr. Nicholas M. Donofrio , 60
Exec. VP of Innovation and Technology $ 1.93M

Mr. Douglas T. Elix , 57
Sr. VP, Group Exec. of Sales and Distribution Group and Member of Operations Committee $ 1.86M

Mr. Stephen Maurice Ward Jr., 50
Sr. VP and Gen. Mang. of Personal Systems Group $ 1.60M

http://finance.yahoo.com/q/pr?s=IBM

[stray cat]

1. I have more confidence in 401Ks actually being around.

I would rather have my employer contribute to my 401K its even better if they match funds on top of it. This may not be a bad deal for both employer and employee.

[SoCalDem]

2. Nothing new.. They want the older ones to "cash-out"

so they can hire cheaper, younger workers..

[Deja Q]

3. Bingo. Hush-hush ageism. Exterminate the oldsters.

I mean, they have no value to society. :eyes:

[SoCalDem]

4. If you are 55 and have accrued all you can in your pension

and you are burned out, why not bail out and become a consultant? Lots of guys do this and actually end up making more..and have their own schedule too.