https://forums.theregister.com/forum/all/2024/10/24/ibm_q3_2024/
"The bean counters must be counting the days/years until the defined benefit pension plan obligations cease"
https://www.reuters.com/technology/ibm-take-27-bln-charge-related-transfer-pension-obligations-2024-09-11/
The 401K change is viewed by most number crunchers as scrounging through the couch cushions for loose change. That was an act of desperation.
Bad days ahead.
"It doesn't take much imagination to visualize where IBM's profitability would have been without the $3 billion added to its bottom line from the U.S. pension plan starting in 2008 (highlighted above from Ellen Schultz book) and probably an equivalent amount from the U.K. pension scheme starting in 2009." https://www.discerningreaders.com/ibm-financial-engineering-aggressive-bookkeeping-uk-pension-plans.html
1dxz You are looking at it correctly It’s all about cash flow, and the RBA is self funding for the next 7+ years via the overfunding of the traditional pension. The RBA is a promise, and nothing more. Right now with FCF being strong the promise will be honored, but let times get tough, and we’ll see what happens. NOTE IBM has slashed NA headcount below 40k, which may make all of this speculation moot.
Why would they care? If they try to touch any surplus it would be taxed into oblivion. They already use it to fund RBA benefits.