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View Diary: Hostess took workers' pension money to fund itself (158 comments)

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  •  401k (0+ / 0-)

    Late to the comment thread, but I couldn't help it:

    I'm sure that there are accounting tricks that can take money from 401ks. Recent case in point: IBM shifts 401(k) contributions to once-a-year matches.

    In this case, IBM is no longer providing match money with each paycheck; instead, they're providing that match money in a lump sum at the end of the year. The percentage of the match is the same, but (A) the employees miss out on the interest and accumulation through the year and (B) if they employee quits or gets laid off before December 15, they get no match for the calendar year. This is supposed to "save the company money" on retirement plans.

    Now, IBM employees can't really complain, because the company is matching money, and it doesn't have to do that. However, it's a benefit that the employees are promised, and the company is monkeying with that to not provide as much.

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