Word: ibm
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Dates: during 1990-1999
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When Lou Gerstner, IBM's iron-willed CEO, makes a decision, he usually sticks by it. So how was it that 10 days ago he made an abrupt about-face, scaling back a change to the company's retirement plan that was supposed to save $200 million annually? And did Gerstner realize he was feeding a nationwide workplace riot among baby boomers, who are convinced their nest eggs are being plundered...
...worker's last years of service, to more flexible, so-called cash-balance plans. The new model lets workers build up their nest eggs at a steadier pace and take the balance from job to job. It is more consistent with today's career cycle. But when IBM announced its conversion in May, thousands of middle-aged IBM workers, hardly known for their activism, began screaming that the switch promoted age discrimination...
...actually do better under a cash-balance plan, 40- to 50-year-olds about to enter their peak earning years can lose up to half of their expected final payout. To drive that point home, some Big Blue employees flew a banner over the Minnesota state fair that read, IBM'S PENSION THEFT COULD HAPPEN...
Just as Congress was gearing up to hold hearings on the issue, IBM announced it would change the eligibility rules to double the number of workers--to 65,000--who would be able to keep their old pensions. Still, IBM senior vice president J. Thomas Bouchard, testifying before the Senate last week, said firms like his need the allure of cash balances to attract young, mobile high-tech workers in a tight talent market: "There just isn't enough money to go around to give a choice to everybody." Many employer groups warn that onerous restrictions could do more harm...
...there too. About 15 minutes after we got into the water, we watched the tug sink. She looked pretty much like the Titanic, except the Gulf Majesty went down stern first. I'd been with her about two years, and my heart was really in her. My IBM laptop, my guitar, $500 worth of cigars, and the only picture I had of my father--he died in 1985--went down with the ship...