Financial Services Industry
Industry: Email Alert RSS FeedLessons to be learned.(Editorial)(Editorial)
Pensions & Investments, December, 2004
The closing of the International Business Machines Corp.'s defined benefit plan to new employees is the fruit of confrontational litigation, narrow-minded congressional hearings and vacillating Department of Treasury rule-making efforts to thwart the conversion of conventional defined benefit plans to cash balance alternatives.
Litigators, politicians and regulators professed concern about the purported discriminatory features of cash balance plans, whether at IBM or Xerox Corp. or any number of companies. Now, they have succeeded in erasing that problem at IBM and have helped engineer the creation of a plan for new participants without defined benefit problems. The IBM move will likely lead other companies to reconsider their support for conventional defined...
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