Re: U.S. companies take aim at pension risk with lump-sum offers
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Edward, I don't know about your history with IBM, mine was 33 years, I will tell you this, the IBM Corporation is NOT about to do as YOU state,,,?'IBM has plenty of cash on hand, but the executives could be very tempted to cut medical benefits as a way to boost profits and enhance their bonuses.'? To
EVEN conjecture such an idea is borderline slanderous, IMHO What documentation do you have that would support that premise? ?
From: edward_berkline
To: ibmpensionissues@...
Sent: Sunday,
November 4, 2012 11:00 PM
Subject: [ibmpensionissues] Re: U.S. companies take aim at pension risk with lump-sum offers
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> What a bunch of fantasy conjecturing! ? Current earnings have
> almost little or NO impact on a company's Pension funding or
> healthcare benefits.
Although current earnings don't affect the pension fund, ALL healthcare benefits, both for current employees and retirees are paid from income as an operating expense. As revenue goes down, it becomes harder to pay for those medical benefits. IBM has plenty of cash on hand, but the executives could be very tempted to cut medical benefits as a way to boost profits and enhance their bonuses.
I'm not saying that I think they will do that, but the pressure will be there. Earnings reports from the last 5 years or more show that almost all of IBM's profit growth has come from cutting expenses.
--- In ibmpensionissues@..., Just Puttin' wrote:
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> What a bunch of fantasy conjecturing! ?? Current earnings have almost little or NO impact on a company's Pension funding or healthcare benefits.
>
> What if the sky falls tomorrow, before noon?
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