HAPPY DAYS: $606 million in pension earnings help by boosting IBM corporate bottom line.(Brief Article)

Pensions & Investments, September, 2000 by Anand, Vineeta

IBM Corp.'s bottom line is continuing to benefit hugely from its pension fund. In its latest financial filings with the SEC Aug. 14, the company acknowledged that earnings on its pension fund assets contributed $606 million for the first six months of 2000, a hefty $261 million increase over the same period a year ago.

Only $20 million of its higher pension income is attributable to savings from the company's switch to a cash balance plan last year, IBM stated in its discussion of financial results. Bowing to critics of its pension fund disclosures in its 1999 annual report, the company also acknowledged in the body of its quarterly filing with the Securities and Exchange Commission that the company's pension fund contributed $762 million to its bottom...

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