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IBM Freezes its Defined-Benefit Plan
Meanwhile, Big Blue aggressively expands its 401(k) benefits to ease the transition.
IBM officials announced sweeping changes to the company's pension plans that will save the corporation $2.5 billion to $3 billion by 2010.
The changes are part of IBM's global strategy of shifting the future focus of retirement benefits from traditional defined- benefit plans to 401(k) defined contribution plans, which are more a deferred savings account than a classic pension plan. IBM will stop the accrual of future benefits in the company's defined benefit pension plans as of December 31, 2007, say officials.
Meanwhile, IBM will aggressively expand its 401(k)...