The company announced it would freeze its defined benefit plan and move towards defined contribution.
The reform will start in 2008; the company will freeze the current defined benefit scheme – considered too expensive – and encourage its employees towards participation in a redesigned 401k saving plan, based on individual accounts linked to the performance of financial markets.
Through this change IBM expects to save 3 billion dollars over the next four years.
(The Washington Post, 06/01/2006)
(Financial Times, 06/01/2006)