Starting January 1, 2024, IBM is changing how IBM provides retirement benefits to eligible employees. Instead of IBM making contributions to employees’ 401(k) accounts, IBM will provide a new benefit called the Retirement Benefit Account (RBA). Each eligible employee’s RBA will be credited monthly with an amount equal to 5% of their eligible pay.
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Yes. Essentially they cut the contribution from 6% to 5%, a 16.66% reduction. But its worse.
The money is NOT actually in the RBA. It simply shows a balance owed. So essentially they're reducing the contributions by 100%. You dont actually get the one time transfer until you leave/retire.
Also the amount of interest is fixed. Which means IBM can use that money for whatever it wants.
So this has an immediate positive effect on cash flow. The way to think of this is as an IOU
Listen folks, here is how to work at IBM these days... do the least, try to work from home and enjoy life as much as you can while your IBM paychecks keep on coming. No, need to stress, stress is what will ki-l you.
If you listened to the CEO latest office call, he clearly explained what he thinks productivity is... the guy is a total id--t, but he knows how to line his pockets with money. These types of CEOs just destroy companies.
It is all about cutting costs at IBM... that is the only thing that IBM has since there is absolutely no growth at all.
Still waiting to see how IBM will manage to pull 5.4B of FCF in 4Q to make their promise on the 10.5B?!?!
I guess the relocation/back-to-office/PIP schemes are going to be really aggressive to get people out extremely soon! Good luck all!
hahahaha ibm is a s**t
IBM is clearly strapped for cash. This is the equivalent of scrounging around the couch cushions for loose change.
So 401Ks were typically pretax unlike ROTH. So this means employees lose the deferred tax benefits of contributing to a 401K in addition to losing out on the change from 6% to 5%. In addition to losing out on the investments in a 401K if they are doing well although the stock market and the DOW, S&P 500 and NASDAQ have really suffered the past 3 months
This su-ks. Really hurts ability to save for retirement through equities.
So we are losing our 6% match for accounts with historical returns of 10% and under our control for a 5% deposit into US Treasuries with historical returns of 3%, plus IBM gets the tax benefits.
Typical. The most insulting part is that they are trying to pass this off as somehow “beneficial” to IBM employees.
This was the last straw for me. I’m out.