IBM Goes for 401K’s

Last month, it was Verizon (VZ). Now it’s IBM’s (IBM) turn. The only surprise here is that it took them so long. I mean, pension plans are so last century:

International Business Machines Corp. said today it will freeze the pension plans of some 120,000 employees in the United States, effective at the end of next year, and will offer instead a more generous 401(k) plan.
IBM’s move is part of a corporate stampede away from traditional pension plans. IBM officials called the change essential to remain competitive with foreign and domestic information technology rivals.

The pension crisis is also coming after corporate balance sheets.

Posted by on January 7th, 2006 at 4:14 pm


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