IBM’s New 401k Match Policy Isn’t What You Think
Of Counsel Michelle Capezza was quoted in a Fiduciary News article discussing IBM’s decision to eliminate its 401k match. Michelle offered insight on what prompted this policy change and why the new policy is unlikely to be adopted by other companies.
Michelle said, “This new account appears to be a hybrid pension-type of plan or cash balance plan, which the internal memo referred to as being within the IBM Personal Pension Plan. If other companies do not offer such plans that could offer this type of benefit, they would need to adopt a whole new plan to provide this retirement benefit in lieu of a 401k matching contribution.”
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