This latest cut in the pension hits the people who were hit just 4 years ago especially hard. IBM was putting money into the 401k to soften the cut to the defined plan for those few employees who are still eligible for it. Under the latest change, those employees now lose the entire year of investment income. It could not come at a worse time for them. This hits just as they reach retirement age or are planning retirement. Moving the retirement income target for those employees once again. When the people that brought you success start questioning why it is happening to them, IBM is in trouble. IBM is targeting the only people with legacy knowledge of the inner processes and any kind fo work ethic.
It is scary to think that the people who make these decisions are either so insulated from what is being said on the ground floor of IBM or they don't care. Either way, it apperas that they are oblivious to the lower than whale s**t moral that is rampant at almost every level beneath VP.
IF you can retire....if you are not eligible, you are getting the shaft. What about the people in the sweet spot 25-30 years, still on defined contribution plan, and relying on the 401k bump to get them closer to even. Most of those folks saw a 33% pension cut 4 years ago.
Not true. When IBM changed from defined to cash, some employees chose to stay with the defined with no further contributions with a company enhanced contribution to the 401k. This change means that enhancement will lose the benefit of growth for an entire year. That is a pension cut. Bottom line, if IBM wasn't saving money, they would not do it.
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.
The development labs in the US are filled with people with 25+ years and that who is hit the hardest each time they cut. When they look back on the last 2 years, they will realize what a huge mistakes they are making. Time will tell.
No, firing American workers because they are overpaid (cost of living is higher here ya know) and hiring Indian workers because they are cheap (cost of living over there ya know) and INCREASE SHAREHOLDER VALUE is low.
Zero, essentially you are saying that IBM no longer has a pension plan. IBM only contributes to a 401K plan which was the replacement for the old pension / cash balance plan. So if you don't feel that these changes are a pension cut, then you are saying IBM does not fund a pension / retirement account.