Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Will 401(k) plans keep getting worse?
CNN ^ | December 12, 2012 | Teresa Ghilarducci

Posted on 12/13/2012 4:50:04 AM PST by lwd

CNN) -- IBM, one of America's largest companies, shook the employee compensation world when it announced recently that it would contribute only once every December to its employees' 401(k) accounts. Any employee who leaves before December would not be able to collect the company's match.

Workers at IBM aren't marching to the picket line like Walmart workers and longshoreman who protest pay and working conditions, but you just never know.

Only about 9% of the nation's employers make matches once a year. IBM's move is paving the way for big companies to go down this road.

(Excerpt) Read more at cnn.com ...


TOPICS: Business/Economy
KEYWORDS: 401k; propaganda
search the authors name on FR for background info. She's the same commie that suggested the government run 401Ks in 2008.
1 posted on 12/13/2012 4:50:07 AM PST by lwd
[ Post Reply | Private Reply | View Replies]

To: lwd

They will get worse.

Next question.


2 posted on 12/13/2012 4:54:38 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

I do recognize her name. Except from a Rush Limbaugh segment and yes, it’s the same commie.


3 posted on 12/13/2012 4:57:29 AM PST by albie
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd
Workers at IBM aren't marching to the picket line like Walmart workers

Perpetuating the myth that W-M workers protested W-M by the tens of thousands while in fact there probably weren't a half dozen of W-Ms 1.3 million employees that did so.

4 posted on 12/13/2012 4:57:33 AM PST by Graybeard58 ("Civil rights” leader and MSNB-Hee Haw host Al Sharpton - Larry Elder)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

I didn’t read the article, but my brother works for IBM, and I couldn’t believe it when he told me this. I kept asking if he was sure the Dept of Labor approved that — turns out it does not apply to people who retire during a year, but if you resign Dec 1, you forfeit that entire year’s match! Definitely a reduction in compensation. No surprise, the country will continue to get poorer, and we will see more of all these types of penny-pinching.


5 posted on 12/13/2012 4:57:40 AM PST by Old_Grouch (65 and AARP-free. Monthly FR contributor.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

If the employees don’t leave for greener pastures, and in this economy...not a chance, then yes, they will get worse. 401K’s and health benefits are there to attract employees, not out of the goodness of the company’s heart. If the employees will stay without them, then why would a company keep forking out that kind of money?


6 posted on 12/13/2012 5:00:22 AM PST by Wolfie
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd
Rush covered this (with Teresa Ghilarducci) back in 2008: The Democrats Want Your 401(k)
7 posted on 12/13/2012 5:02:42 AM PST by COBOL2Java (GOPe: Already prepping for their 2016 loss - Jeb Bush!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

And thus begins Obama`s propaganda offensive against private retirement accounts. Sounds like the information ministers have been given the green light to proceed.


8 posted on 12/13/2012 5:03:15 AM PST by ScottinVA (I've never been more disgusted with American voters.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

They will kill them and then take them from us. The non-tax payers will support their thief.


9 posted on 12/13/2012 5:06:14 AM PST by bmwcyle (We have gone over the cliff and we are about to hit the bottom)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

When it comes to anything related to keeping or earning a dollar, EVERYTHING is going to get worse.


10 posted on 12/13/2012 5:06:34 AM PST by TurboZamboni (Looting the future to bribe the present)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

It’s what many IBM employees voted for.


11 posted on 12/13/2012 5:18:47 AM PST by ILS21R (Everything... IS... a conspiracy)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TurboZamboni

“When it comes to anything related to keeping or earning a dollar, EVERYTHING is going to get worse.”

Yep. Nothing is off the greedy libeal’s table. They’ll find every source of money and try to take it. See my tagline.


12 posted on 12/13/2012 5:26:31 AM PST by CodeToad (Liberals are bloodsucking ticks. We need to light the matchstick to burn them off.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: lwd
RE:”Any employee who leaves before December would not be able to collect the company's match.

????

This is supposed to make us cry?

13 posted on 12/13/2012 5:32:09 AM PST by sickoflibs (Dems know how to win. Rs know how to whine.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wolfie
If the employees don’t leave for greener pastures, and in this economy...not a chance, then yes, they will get worse. 401K’s and health benefits are there to attract employees, not out of the goodness of the company’s heart. If the employees will stay without them, then why would a company keep forking out that kind of money?

Excellent point.
14 posted on 12/13/2012 5:34:33 AM PST by crosshairs (Too many things to say. Not enough room.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: lwd
I'll just say that I work in a healthcare-related business that is fortunate enough to have a very nice 401(k) plan, with regular, monthly matches.

The downfall is, my company is already paying heavily--many kinds of "user fees" to the government, plus some other "fee" for closing the Medicare Part D "donut hole." I fear under so much government regulation, it won't be long before some bean-counter from the IPAB will say to us, "you're doing awfully well...many people are out of work, much less have a matching 401(k) plan. You'll need to pay a little more fair share, even if it means eliminating what you contribute to your employees."

Granted, the government won't specifically phrase it that way, and they'll never directly tell employers to stop contributing to nice salaries and defined contribution plans. But perks like these are costs, and when companies have to drastically control costs, programs like ours will suffer.

15 posted on 12/13/2012 5:39:27 AM PST by Lou L (Health "insurance" is NOT the same as health "care")
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs

Big whoop.


16 posted on 12/13/2012 5:42:56 AM PST by Eric in the Ozarks (In the game of life, there are no betting limits)
[ Post Reply | Private Reply | To 13 | View Replies]

To: lwd

yep. I had a job with that plan. I quit the first week of January, instead of getting out of there in December.


17 posted on 12/13/2012 5:52:23 AM PST by campaignPete R-CT (campaigned for local conservatives only)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

Workers at IBM aren’t marching to the picket line like Walmart workers....
****************************************************
Only about 50-100 WalMart workers nationwide were involved in that protest. The people protesting were union members and many were bussed in from other areas.

Obama and his SEIU, Teamsters, AFLCIO, UAW, etc.-type union thugs need to be eliminated from threatening normal Americans.


18 posted on 12/13/2012 6:10:03 AM PST by octex
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

A corporate contribution to a 401(k) plan? Huh?? What’s this?


19 posted on 12/13/2012 6:19:59 AM PST by ProtectOurFreedom
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jonty30

Just more media stage setting for Obama to execute the Theresa Ghilarducci plan and seize them.


20 posted on 12/13/2012 6:37:07 AM PST by Buckeye McFrog
[ Post Reply | Private Reply | To 2 | View Replies]

To: Wolfie

You are absolutely right, a company need not and should not pay more than necessary to get an employee or keep him.

In the current environment employees will give up a lot before they leave.


21 posted on 12/13/2012 6:44:19 AM PST by super7man
[ Post Reply | Private Reply | To 6 | View Replies]

To: lwd

A fiscal year end match is the policy of the company I work
for. If, and that’s a big if, profits allow a match at all.
I feel privileged when I receive a match.


22 posted on 12/13/2012 8:24:12 AM PST by kawhill (kawhill)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wolfie

Of course it will get worse.

401K’s will end, for the same reasons that pensions ended. They cost money.


23 posted on 12/13/2012 8:31:45 AM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: lwd

When I worked at Lockheed Martin, many people in the management structure were former IBM’ers. A lot of them were very liberal too as well like one manager I had who wasn’t nice.

One comment about making a dollar getting much harder, seems like a very popular plan not only with the gov’t but also companies. I talk with my former cohorts from LM and they have been on a wave of taking many things away. Here is the list

- pension - grandfathered for those who started before 1/1/2006a

- no vacation payouts at end of year if beyond 400 hours and time adjusted to 400 - eliminated 1/1/2008c

- vacation time ceiling where once you hit max, you don’t get additional time each month - indirectly lose the time

- use to get 7 floating holidays, a de-facto another week of vacation but next year, only get 4 floaters with the stipulation that you cannot use it as additional vacation time, the days have to be spread out and cannot be used with vacation time like 1 day floater and 4 vacation days

- you are expected to give 5 free hours of casual OT per week

- if you take vacation, you are expected to make up the time with unpaid casual overtime in addition the expected 5 hours of free time per week

- when you take vacation, it is mandatory to leave contact information and subject to recall

- if you have to relocate for a job, you are only given enough money to do a “do-it-yourself” move. No money for Realtor fees or temp housing.

- of course the executives are exempt from these pesky rules

- very limited options with 401k’s

- company medical is really rotten but very expensive, run like an HMO with the various gateways to prevent access to specialized care or make it difficult

On using vacation time, many contracts now require excruciating painful red tape to use it. To leave for more than a week, you have to get special permission from higher levels of management. Just to take a week, you have to get permission from your manager AND his peer managers. On many contracts, the number of people is down to the bone where if you take vacation, the work just piles up until you get back.

Bottom line, it is harsh control not only on your finances but also your personal life as well.


24 posted on 12/13/2012 9:22:11 AM PST by CORedneck
[ Post Reply | Private Reply | To 1 | View Replies]

To: lwd

Watch for big November layoffs at #1BM...


25 posted on 12/14/2012 12:19:09 PM PST by TXnMA ("Allah": Satan's current alias... "Barack": Allah's current ally...)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson