By Kristen Beckman
Source: Benefits Pro
IBM, once a leader in the shift away from defined benefit plans to defined contribution plans in the United States beginning in 1984, is now heading in a new direction with its retirement savings benefit for employees. Many industry observers wonder if other employers will follow IBM’s lead again.
IBM notified employees earlier this month that it will suspend its 401(k) match and 1% automatic contribution as of Jan. 1 and will instead make a monthly account credit toward a new “Retirement Benefit Account.” The new plan also provides a one-time salary increase to offset the difference between the current company contribution and the new account credit amount.