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Will 401(k) plans keep getting worse?
CNN ^ | December 12, 2012 | Teresa Ghilarducci

Posted on 12/13/2012 4:50:04 AM PST by lwd

CNN) -- IBM, one of America's largest companies, shook the employee compensation world when it announced recently that it would contribute only once every December to its employees' 401(k) accounts. Any employee who leaves before December would not be able to collect the company's match.

Workers at IBM aren't marching to the picket line like Walmart workers and longshoreman who protest pay and working conditions, but you just never know.

Only about 9% of the nation's employers make matches once a year. IBM's move is paving the way for big companies to go down this road.

(Excerpt) Read more at cnn.com ...


TOPICS: Business/Economy
KEYWORDS: 401k; propaganda
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search the authors name on FR for background info. She's the same commie that suggested the government run 401Ks in 2008.
1 posted on 12/13/2012 4:50:07 AM PST by lwd
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To: lwd

They will get worse.

Next question.


2 posted on 12/13/2012 4:54:38 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: lwd

I do recognize her name. Except from a Rush Limbaugh segment and yes, it’s the same commie.


3 posted on 12/13/2012 4:57:29 AM PST by albie
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To: lwd
Workers at IBM aren't marching to the picket line like Walmart workers

Perpetuating the myth that W-M workers protested W-M by the tens of thousands while in fact there probably weren't a half dozen of W-Ms 1.3 million employees that did so.

4 posted on 12/13/2012 4:57:33 AM PST by Graybeard58 ("Civil rights” leader and MSNB-Hee Haw host Al Sharpton - Larry Elder)
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To: lwd

I didn’t read the article, but my brother works for IBM, and I couldn’t believe it when he told me this. I kept asking if he was sure the Dept of Labor approved that — turns out it does not apply to people who retire during a year, but if you resign Dec 1, you forfeit that entire year’s match! Definitely a reduction in compensation. No surprise, the country will continue to get poorer, and we will see more of all these types of penny-pinching.


5 posted on 12/13/2012 4:57:40 AM PST by Old_Grouch (65 and AARP-free. Monthly FR contributor.)
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To: lwd

If the employees don’t leave for greener pastures, and in this economy...not a chance, then yes, they will get worse. 401K’s and health benefits are there to attract employees, not out of the goodness of the company’s heart. If the employees will stay without them, then why would a company keep forking out that kind of money?


6 posted on 12/13/2012 5:00:22 AM PST by Wolfie
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To: lwd
Rush covered this (with Teresa Ghilarducci) back in 2008: The Democrats Want Your 401(k)
7 posted on 12/13/2012 5:02:42 AM PST by COBOL2Java (GOPe: Already prepping for their 2016 loss - Jeb Bush!)
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To: lwd

And thus begins Obama`s propaganda offensive against private retirement accounts. Sounds like the information ministers have been given the green light to proceed.


8 posted on 12/13/2012 5:03:15 AM PST by ScottinVA (I've never been more disgusted with American voters.)
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To: lwd

They will kill them and then take them from us. The non-tax payers will support their thief.


9 posted on 12/13/2012 5:06:14 AM PST by bmwcyle (We have gone over the cliff and we are about to hit the bottom)
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To: lwd

When it comes to anything related to keeping or earning a dollar, EVERYTHING is going to get worse.


10 posted on 12/13/2012 5:06:34 AM PST by TurboZamboni (Looting the future to bribe the present)
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To: lwd

It’s what many IBM employees voted for.


11 posted on 12/13/2012 5:18:47 AM PST by ILS21R (Everything... IS... a conspiracy)
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To: TurboZamboni

“When it comes to anything related to keeping or earning a dollar, EVERYTHING is going to get worse.”

Yep. Nothing is off the greedy libeal’s table. They’ll find every source of money and try to take it. See my tagline.


12 posted on 12/13/2012 5:26:31 AM PST by CodeToad (Liberals are bloodsucking ticks. We need to light the matchstick to burn them off.)
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To: lwd
RE:”Any employee who leaves before December would not be able to collect the company's match.

????

This is supposed to make us cry?

13 posted on 12/13/2012 5:32:09 AM PST by sickoflibs (Dems know how to win. Rs know how to whine.)
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To: Wolfie
If the employees don’t leave for greener pastures, and in this economy...not a chance, then yes, they will get worse. 401K’s and health benefits are there to attract employees, not out of the goodness of the company’s heart. If the employees will stay without them, then why would a company keep forking out that kind of money?

Excellent point.
14 posted on 12/13/2012 5:34:33 AM PST by crosshairs (Too many things to say. Not enough room.)
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To: lwd
I'll just say that I work in a healthcare-related business that is fortunate enough to have a very nice 401(k) plan, with regular, monthly matches.

The downfall is, my company is already paying heavily--many kinds of "user fees" to the government, plus some other "fee" for closing the Medicare Part D "donut hole." I fear under so much government regulation, it won't be long before some bean-counter from the IPAB will say to us, "you're doing awfully well...many people are out of work, much less have a matching 401(k) plan. You'll need to pay a little more fair share, even if it means eliminating what you contribute to your employees."

Granted, the government won't specifically phrase it that way, and they'll never directly tell employers to stop contributing to nice salaries and defined contribution plans. But perks like these are costs, and when companies have to drastically control costs, programs like ours will suffer.

15 posted on 12/13/2012 5:39:27 AM PST by Lou L (Health "insurance" is NOT the same as health "care")
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To: sickoflibs

Big whoop.


16 posted on 12/13/2012 5:42:56 AM PST by Eric in the Ozarks (In the game of life, there are no betting limits)
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To: lwd

yep. I had a job with that plan. I quit the first week of January, instead of getting out of there in December.


17 posted on 12/13/2012 5:52:23 AM PST by campaignPete R-CT (campaigned for local conservatives only)
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To: lwd

Workers at IBM aren’t marching to the picket line like Walmart workers....
****************************************************
Only about 50-100 WalMart workers nationwide were involved in that protest. The people protesting were union members and many were bussed in from other areas.

Obama and his SEIU, Teamsters, AFLCIO, UAW, etc.-type union thugs need to be eliminated from threatening normal Americans.


18 posted on 12/13/2012 6:10:03 AM PST by octex
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To: lwd

A corporate contribution to a 401(k) plan? Huh?? What’s this?


19 posted on 12/13/2012 6:19:59 AM PST by ProtectOurFreedom
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To: Jonty30

Just more media stage setting for Obama to execute the Theresa Ghilarducci plan and seize them.


20 posted on 12/13/2012 6:37:07 AM PST by Buckeye McFrog
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