Skip to comments.Will 401(k) plans keep getting worse?
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 ...
They will get worse.
I do recognize her name. Except from a Rush Limbaugh segment and yes, it’s the same commie.
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.
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.
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?
And thus begins Obama`s propaganda offensive against private retirement accounts. Sounds like the information ministers have been given the green light to proceed.
They will kill them and then take them from us. The non-tax payers will support their thief.
When it comes to anything related to keeping or earning a dollar, EVERYTHING is going to get worse.
It’s what many IBM employees voted for.
“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.
This is supposed to make us cry?
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.
yep. I had a job with that plan. I quit the first week of January, instead of getting out of there in December.
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.
A corporate contribution to a 401(k) plan? Huh?? What’s this?
Just more media stage setting for Obama to execute the Theresa Ghilarducci plan and seize them.
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.
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.
Of course it will get worse.
401K’s will end, for the same reasons that pensions ended. They cost money.
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.
Watch for big November layoffs at #1BM...