Re:IBM to Acquire the Weather Company
by hindsightbias on Wednesday October 28, 2015 @04:47PM
(#10467289)
A lot of older tech companies used to, but pensions are gone now.
For IBM, any accrued pension remains in a managed fund until you quit/retire. Most employees had a 401k option at the same time as a pension - you pay 6% of your salary into it and the company matches half that, another 3%.
If you didn't make the pension cutoff, IBM now matches the 6% plus some more depending on what date you started. I think it comes out to something like 14% of base pay for most employees. In a 401k, the individual has much more control over investment direction, whereas with a pension you had none.
For IBM, any accrued pension remains in a managed fund until you quit/retire. Most employees had a 401k option at the same time as a pension - you pay 6% of your salary into it and the company matches half that, another 3%.
If you didn't make the pension cutoff, IBM now matches the 6% plus some more depending on what date you started. I think it comes out to something like 14% of base pay for most employees. In a 401k, the individual has much more control over investment direction, whereas with a pension you had none.