IBM latest pension cut hits older employees hardest.....again.
Lets be realistic here. Retiree's will get their match just delayed. What is lost is the potential gain or loss on the delayed payment. If IBM only matches 6% and perhaps these long term people might be making $150k per year we are talking about a match of up to $9k if they wait till the end of the year to retire. What is lost is the gain that might be made against $9k. Considering interest/gains is variable throughout the year depending on how much has been accrued for the year we are only talking about potential loss of 100's of dollars. Cheap to do to employees, yes. Major loss for their last year, no. Only loss is for the younger people who lose the compounding affect over many years.
$150k per year? What planet are you on? The vast majority of these people are making 60-85k per. These are not big money sales or corporate jobs. These are hourly rated technicians and lower level exempt employees. This is a big part of their retirement. This was also part of the change that pulled the defined pension plan out from under them 4 years ago, 401k enhancements to build up some cash. How is any employee suppose to plan if they keep moving the target? They just keep taking from the US employees and expect them to sit by and take it. When older IBMer's left in the past, they took the time to train new people, teach them the inside tricks of the trade and help them transition. Not anymore, especially with the off shored jobs. Once this generation of IBMers is gone they will be forced out of the hardware business because there will be no one there who knows how to design, manufacture, test and release new products.