IBM has two retirement plans. A defined benefits plan and a 401K plan. IBM puts money into the defined benefits plan for our retirement and has another firm manage that money for them. The 401K plan has many options for investment which includes IBM stock but is not limited to IBM stock. The employee has the opportunity to make 8 changes per year "fee" free and at their own discretion. IBM matches our funds with cash funds up to 50% of 6% of our money that we put in. It is very fair, however, if you want me to gripe I think that IBM should give match me 100% of the money I put in up to all of it! <VBG>
Most companies who match with company stock have gotten into trouble. IBM does not do that so far. I have not heard that they will either. JCPenny's was another company whose employees lost losts of money in their retirement fund. It was a few years back. Again, the same problem.
I'm not so sure the matching funds in IBM stock would bother most people. Most of us have a percentage in IBM stock now. If the company match was in IBM stock, then I'd just redirect my contributions elsewhere. The bottom line would be similar.
Tally, but look how much retiree's have lost because Lou won't give us a COLA. Instead he uses the excess funds to generate up to 20% of IBM profit margins by using accounting trickery which results in large bonuses for him and his cronnies while the Pension Fund which by Law is suppose to be STRICTLY FOR THE BENEFIT OF EMPLOYEES continues to grow. Note I said EMPLOYEES NOT A SELECTIVE SUBSET of JUST EXECUTIVES. My take is very simple, if Retirees don't get any benefit from the Pension Surplus and anyone else does, then IMHO they are a bunch of crooks who figured out or lobbied for ways to BOIL the BOOKS.