| Business

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

IBM shifts 401(k) policy to once-a-year matches

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

IBM $191.95 +$2.25

at close on FRIDAY

Daily Photo Galleries

By The Associated Press
Saturday, Dec. 8, 2012, 12:01 a.m.

IBM will begin making lump-sum matching contributions to employees' 401(k) accounts on an annual basis, rather than contributing each time a worker gets a paycheck.

It's a move that will help the technology company cut costs. Experts say other major employers could follow suit because IBM is a large and generous employee benefits provider, and influential in the benefits field.

IBM historically has distributed matches to 401(k) accounts every other week when employees are paid. But spokesman Doug Shelton says employees were notified this week that contributions will be made just once annually, at Dec. 31, beginning next year.

Contribution amounts won't change. But employees who leave IBM prior to Dec. 15 in a calendar year won't be due that year's end-of-year lump-sum 401(k) contribution, unless they're retiring.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Stories

  1. Biden, Ryan facing tough decisions
  2. Pirates say goodbye to veteran leaders Burnett, Ramirez
  3. Cole working to become Penguins’ next Martin on defense
  4. Steelers notebook: Starting DEs not leaving the field
  5. Pitt, WR Boyd look to break out against Virginia
  6. Plum superintendent says lack of school tip line was ‘oversight’
  7. Opposing TEs Miller, Gates took differing paths to greatness
  8. Turkish PM says deadly attacks likely were suicide bombings
  9. Pittsburgh’s bike sharing service starts off healthy
  10. State woos Kennametal with $1M in incentives to stay in Pa.
  11. Feds aim to bring Chinese military leaders to Pittsburgh for trial