IBM Draws Flak for Changes to 401(k) Savings Plan
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International Business Machines Corp., the largest computer-services provider, drew fire from a worker organization for a change to its 401(k) retirement plan that cuts the frequency of company contributions to once a year.
The company will switch from matching employee contributions to their 401(k) plans twice a month to every Dec. 15, a move that “shortchanges IBM employees,” Alliance@IBM said on its website. While the amount that employees receive isn’t changing, workers who leave or are fired before Dec. 15 won’t get their payment for the year.