No it isn’t just a financial thing. They transferred the money & liabilities to a firm that thinks it can turn a profit on the investment. The current IBM pension liability was over funded. (Over 100%) If the new pension fund owner invests in say Bitcoin and loses 2/3 like Bitcoin did over the past year, those pensions are at risk. There’s no upside risk to the pensioners, but there is downside risk.
Sent from Yahoo Mail for iPhone On Wednesday, September 14, 2022, 5:01 PM, Charles Mills <[email protected]> wrote: It's purely a financial thing, right? Like if they had moved their checking account from Chase to Wells? Pensioners should not see any significant change. These are defined benefit plans: you get $X/month no matter who pays the bills or what the rate of return. Nor do they incur any significantly changed risk. IBM simply transferred their rate of return risk to someone who is in that business. Charles -----Original Message----- From: IBM Mainframe Discussion List [mailto:[email protected]] On Behalf Of Bill Johnson Sent: Wednesday, September 14, 2022 1:16 PM To: [email protected] Subject: IBM pension 16 billion offloaded. I’m shocked the IBM haters haven’t mentioned IBM’s announcement today regarding offloading 16 billion in pension liabilities. https://www.pionline.com/pension-risk-transfer/ibm-offloads-16-billion-pension-liabilities-annuity-purchases ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [email protected] with the message: INFO IBM-MAIN ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [email protected] with the message: INFO IBM-MAIN ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [email protected] with the message: INFO IBM-MAIN
