IBM Cash-Balance Plan to Exclude New Hires
From Associated Press
Starting next year, IBM Corp. will exclude new workers from its contested cash-balance pension plan and offer them only a 401(k) savings plan.
The decision comes 10 months after a federal judge ruled the company’s cash-balance pension plan discriminated against older workers because it cut their expected pensions significantly. The company has said it will appeal, but in the meantime agreed to a settlement with some of the workers who sued that could cost up to $6.5 billion.
IBM shares rose 86 cents to $97.51 on the New York Stock Exchange.
