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<< Why Gay Marriage is Like Polygamy | Main | More Lies, More Retractions >> February 19, 2004IBM Owes $6 Billion To RetireesA few years ago, IBM liquidates its traditional pensions in what was called a "cash balance" system, an approach that de facto cut benefits for tens of thousands of older workers. A federal judge declared this an act of age discrimination and has ordered IBM to pay as much as $6 billion in retirement benefits owed to 140,000 older employees who were harmed by its actions. Posted by Nathan at February 19, 2004 07:31 PM Related posts:
Trackback PingsTrackBack URL for this entry: CommentsYippee!!!! I assume it will be appealed and likely overturned at the next level, but it's worth celebrating whenever a federal trial judge gives some giant corporate black hole a major reality check. Posted by: scylla at February 20, 2004 04:33 PM I've followed this case, and I don't think this is much of a triumph. Most of teh people who will get more money are comfortably white collar. The main point of this case is to terrify any corporation that still wants to do a defined benefit (as opposed to defined contribution) plan. Remember, there's a cost to over-deterring wrong-doing in pension plans--namely, driving legal costs so high that there are no pension plans at all! Posted by: Frank at February 23, 2004 06:11 PM Post a comment
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