The New York Times is reporting: “IBM Employees Get $320 Million in Pension Suit.” According to the article:
Under the settlement, which is subject to approval by the court, IBM would pay at least $300 million to current and former employees and $20 million to employees who had not been at the company long enough to earn a pension. The payment of $300 million settles all disputes that arose when IBM changed its pension plan the first time, in 1995, to an interim design called a pension-equity plan.But the settlement leaves unresolved the two claims in the class-action lawsuit that pertain to cash-balance pensions. IBM intends to appeal those claims. One remaining claim is at the very heart of the case: whether cash-balance pension plans by definition discriminate against older workers.
PlanSponsor.com has a good summary of the development here and reports that the settlement caps IBM’s liability with respect to the cash balance plan issue at $1.4 billion if IBM were to lose that issue on appeal.
From the Wall Street Journal article here:
IBM Treasurer Jesse Greene said that “this settlement protects the company and our shareholders.” He said that even if it loses the sections it is appealing, “the remedies are within IBM’s ability to handle.” IBM said it expects to prevail on appeal.