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International Business Machines Corporation Message Board

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  • flatsflyer flatsflyer Nov 19, 2001 5:06 PM Flag

    Pensions

    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.

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    • Flats, you made this statement.

      <<but look how much retiree's have lost beecause Lou won't give us a COLA.>>

      You have lost nothing. You may not have gained anything but you still have the pension you left IBM with.

      • 4 Replies to tally_ho_us
      • Tally, if your pension stays the same, and the cost of your lifetime health benifits increases, then the result is a loss.
        Do the math.

      • >> You have lost nothing. You may not have gained anything but you still have the pension you left IBM with.

        Your statement would be true if there had been no inflation since he retired. Pension funds are designed and funded in a way that allows companies to grant COLAs to keep up with inflation -- and until 1989, IBM had a practise of doing that.

        The current regime, though, is more interested in using the pension fund to visually prop up earnings, and they can't do that if they dedicate too much of it for its intended use...

        Sad, when you think about it!

        Janet

      • We ahve certainly lost. If you go back and look at COLA's that where given by IBM from 1950 to 1990, they average over 3% per year.

        There was no indication that this would not continue, it had been part of IBM's normal operating plan. It's interesting that IBM has STOPPED both the COLA's as well as any contributions to the Pension PLan since 1991.


        Where did all the savings go. Not to the employees, not to the retirees, not to the stockholders but to Lou Gerstner and his cronnies.

 
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