Judge Says I.B.M. Pension Shift Illegally Harmed Older Workers

Article Abstract:

Judge G. Patrick Murphy of the Federal District Court in the Southern District of Illinois has ruled that I.B.M.'s conversion of its pension plan to a so-called cash-balance plan in 1999 discriminated against its older workers insofar as it would result in their receiving smaller benefits when they retired than would be received by younger workers when they retired. The lawsuit , certified as a class action, covers roughly 130,000 I.B.M. employees and retirees in the United States. Documents filed in court revealed that I.B.M. anticipated savings of billions of dollars in pension costs, some of which was to be put toward pensions for I.B.M. executives. Experts say that if the ruling is upheld on appeal, all cash-balance plans would be looked upon as age discriminatory, which would be at odds with the the current regulatory position held by the I.R.S. and the Treasury Department.

Legal issues & crime, Legal/Government Regulation, Ethics, Computer industry, Company legal issue, Cases, Microcomputer industry, International Business Machines Corp., IBM, Ethical aspects, Elderly workers, Age discrimination

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Asset Mix Took Toll on United's Pension Fund

Article Abstract:

United Airlines got into trouble with its pension fund through the investments it made and due to a lack of extra cash with which to replenish pension money that was lost when stocks plummeted. United Airlines lost money in the same risky investments that so badly disappointed most invesors when the high-tech bubble burst. Such risky investments are viewed with concern by regulators, who have no say over how pension fund money is invested.

Financial management, Air Transportation, Scheduled, And Air Courier Services, Finance, Company investment, Investments, Airlines, United Air Lines Inc., Company financing

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Calpers Ouster Puts Focus On How Funds Wield Power

Article Abstract:

The successful ouster of left-leaning California Public Employees' Retirement System head Sean Harrigan may indicate that other pension funds will be subjected to partisan fighting over their management.

Government expenditures, California, Executive changes & profiles, Officials and employees, Political activity, Economic policy, Appointments, resignations and dismissals, Republican Party (California), California. Public Employees' Retirement System, Harrigan, Sean

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