Feeds

Old-timers squeeze $300m out of IBM

$1.1bn to go

  • alert
  • submit to reddit

Internet Security Threat Report 2014

IBM has agreed to shell out $300m to settle part of the claims brought against it in a pension plan dispute.

This deal between IBM and a collection of US employees suing the firm still hinges on court approval and doesn't completely settle the matter. IBM will pay the $300m, which includes attorneys fees, to take care of "certain claims," and then go on to appeal other claims. Because of this agreement, IBM's liability with the remaining claims has been capped at $1.4bn.

IBM will take a charge of $320m in its third quarter as a result of the settlement.

"IBM continues to believe that its pension plan formulas are fair and legal," it said in a statement. "The company has reached this agreement in the interest of the business and IBM shareholders, and to allow for a review of its cash balance formula by the Court of Appeals."

The class action lawsuit dates back to 1999 when an IBM employee charged the company with unfairly changing pension plans. A US District Court ruled that IBM's cash balance formula lets younger employees earn more interest by the time they reach retirement age than older employees. IBM has vigorously denied that this was the right conclusion to reach.

More than 1,200 retirement plans would be considered illegal under current rulings in the matter. ®

Related stories

IBM talks up US pensions with ornery old-timers
IBM UK mulls pension cutbacks
Court rules for IBM pensioners
IBM attacked in staff Web uprising

Beginner's guide to SSL certificates

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.