IBM Fails to Bar Vote on Cash-Balance Plan

IBM Corp. lost its effort to bar stockholders from voting on a controversial pension plan when the Securities and Exchange Commission staff disagreed with the computer giant’s position. The SEC decision was sought by Rep. Bernard Sanders (I-Vt.) and 45 other members of Congress who want IBM stockholders to vote on whether to allow all the company’s employees to choose between the new “cash-balance” pension plan or the older traditional plan. The resolution to put the issue to a vote was filed by 330 stockholders, including 300 IBM employees, who contend the new pension plan discriminates against older workers by cutting promised benefits. These cash-balance plans are a growing trend around the country as companies shift resources away from traditional pensions and toward higher pay or stock options. Claims of age discrimination are being investigated by the Internal Revenue Service, the Labor Department and the Equal Employment Opportunity Commission. IBM spokeswoman Jana Weatherbee said the company believes the resolution will fail when stockholders meet in April. “We don’t believe this is in the best interests of IBM or its shareholders,” she said. IBM had sought to block consideration of the resolution as “ordinary business” that is solely a management concern. But the SEC staff issued a “no action” letter stating it did not agree with that interpretation.