graphic
News > Technology
IBM alters pension terms
September 17, 1999: 3:29 p.m. ET

Big Blue doubles number of employees eligible for old benefits plan
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - In response to internal criticism over its pension-plan changes, IBM Friday said it is doubling the number of employees eligible to keep their existing benefits.
     In a letter e-mailed to all IBM (IBM) U.S. employees, Tom Bouchard, senior vice president of human resources, said 65,000 employees will have the option of choosing between their existing plan and the company's new benefits.
     In May, IBM announced plans to phase out its traditional pensions in favor of a more flexible retirement benefits package it said could save up to $200 million a year and was catered to the changing career goals of its workforce.
     The new so-called "cash-balance" plan allowed employees to take accumulated benefits with them if they left the company. IBM allowed 30,000 IBM employees within five years of retiring to choose the new plan or keep the prior annuity scheme that delivered greater benefits late in an employee's career.
     The pension plan changes met vocal resistance from mid-career employees, especially those between 40 and 50 years old, some of whom calculated that they potentially stood to loose tens of thousands of dollars in future benefits under the new program.
     The additional 35,000 employees now eligible for the option must be at least 40 years old and have 10 years of service with IBM as of June 30, 1999.
     IBM shares fell 2-5/8 to 127-3/8 in afternoon trade. Back to top
     -- from staff and wire reports

  RELATED STORIES

IBM, Cisco ink $2B alliance for parts, services - Aug. 31, 1999

  RELATED SITES

IBM


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.