IBM latest pension cut hits older employees hardest.....again.
A part of the contribution to the 401K plan was put in place to offset the cut in the pension of older workers. The idea was to incrementally add additional money to the employees 401k over the course of the year to increase the value. Now they lose 50 out of 52 weeks of the potential earnings on that contribution. It was presented as a Pension Plan change, therefore, this is a cut.