It is ridiculous that a company like IBM who has had its best year ever in 2008 would come to government and beg for pension funding relief. I can see some relief being needed for companies who are on the ropes and deparately need relief to stay afloat. IBM is not one of these and it does have the money. On one hand based on its profit picture it says things are the best they have ever been and on the other hand it says it can not meet its previously agreed pension committments. Very strange and very sad - one or another of these positions is incorrect.
The pension funding rules were put it place based on solid actuarial science that has determined what is needed to keep the pension properly funded over time. When a company like IBM that has the money lies and says it can't make the required payments, you sadly learn what previously agreed committment mean to them.
It is very distasteful to me, and I imagine even some potential customers will think again when they see this behavior
Ken Prassensof MN2:03AM April 06, 2009
either way we may be looking at no growth over the next 5-10 yrs
of 8:45PM November 25, 2008
The Congress should provide pension contribution relief when the economy suffers a severe recessionary shock and interest rates decline precipitously. The combination of declining cash flow, significant equity asset price declines and unusually low interest rates dramatically understate the future value of the defined benefits portfolio and balloon the contributions necessary to satisfy pension funding targets.
However the pension problem is a symptom of a larger issue. Most defined benefit (pension and healthcare) companies affected are industrial/ manufacturing companies. Since the 1960s foreign countries which provide healthcare and pensions to their citizens have been able to export to the US using these advantages to undercut their US competitors.Furthermore many of the nations exporting to the US have very lax environmental standards another cost advantage over US producers. Lastly, foreign governments have deliberately manipulated their currencies value versus the US dollar to maintain or increase sales in the US. Consequently our domestic producers stuggle to maintain US market share and have no chance at competing in export markets. The result has been enormous trade and current account deficits in the US. Since 2000 the US has lost 4.3 million manufacturing jobs. Meanwhile our Treasury Secretaries since 1992 have turned a blind eye to our trading partners currency abuses. If we do not reverse these "free trade abuses" and require countries running massive trade surpluses to develop domestic demand for goods and services, including imports from the US, our economy will shrink; many of these industries with pension and healthcare obligations will fail and/ or move jobs overseas or both and our foreign partners economies will contract as US consumption falls in concert with declining consumer incomes. I believe this process has begun.
William Steeleof OH11:41PM November 24, 2008
During the working years it was explained clearly that the earned compensation consisted of the dollars you took home and those deferred until retirement. Now it is all explained that it was all a hoax; and the deferred retirement benefits were really only provided by the goodness and the altruistic benevolence of the companies’. The compensation earned by working, loyalty, and dedication for future retirement has been squandered in mismanagement and egregious compensation packages for top executive positions. Now these companies wish to end all pension responsibilities. The pension compensation was earned and should be funded and paid to the employees’ who earned them!
James Barkerof IL1:58AM November 17, 2008
I don't know if this is necessary or not but the best way to succeed in life is to identify work you enjoy which enables you to be happy and be with your family anyway. We all deserve that. www.LikeSoup.com
Jim Campbellof CA3:07PM November 13, 2008
Thank you for electing a democrat as president. Thank you for increasing the number of democrats in congress. Thank you for increasing the size of our country's debt to be utilized as the bottomless bucket of corporate welfare.
CHANGE, CAN YOU SPARE SOME?
Should've voted for Ron Paul, Bob Bahr, or Ralph Nader, not Karl Marx.
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Ken Prassens of MN 2:03AM April 06, 2009
of 8:45PM November 25, 2008
William Steele of OH 11:41PM November 24, 2008
James Barker of IL 1:58AM November 17, 2008
Jim Campbell of CA 3:07PM November 13, 2008
n1njabot of CA 2:11PM November 13, 2008