On April 1, 2015, a class action lawsuit was filed against IBM in the U.S. District Court, Southern District of New York, No. 15 CV 2492, alleging securities fraud. The Complaint alleges that from January 22, through October 17, 2014, IBM over-valued and made material misrepresentations to investors about its Microelectronics business which designs and produces microchips. IBM sought to sell its microelectronics which it certified was worth $2.4 billion when it knew that its Microelectronics business had lost $700 million the year before, expected losses in 2014 and was not worth anywhere near this amount. ...
If you are an existing or former IBM employee who purchased or held IBM stock through the 401(k) Plus Plan, please contact our firm for an evaluation of your rights. You can contact Jake Zamansky by telephone at (212) 742-1414 or by email at firstname.lastname@example.org.
"As part of IBM's ongoing efforts to optimize our worldwide facilities, we are consolidating operations in the Roshek Building and are looking at various space-utilization options, including the possible subleasing of two floors of that building," IBM spokesman Clint Roswell wrote in an email to TH Media. ...
Rick Dickinson, president and CEO of Greater Dubuque Development Corp. and member of the Dubuque Initiatives board of directors, said a recent drop in the company's employment figures prompted IBM to explore alternatives for the fifth and seventh floors.
However, this should not be construed as a sign that more layoffs are on the way or that IBM is planning to cut its ties with Dubuque, he said. ...
Company leaders informed workers of a "permanent mass layoff event" on Jan. 28, cutting 202 employees at the Dubuque facility. CBRE Group, a commercial brokerage firm representing IBM, contacted Dubuque Initiatives two months after the layoffs were announced and raised the possibility of subleasing space, Dickinson said.
Selected reader comments follow:
Since when did IBM meet any of the conditions especially the condition that they employ 1400?
And since when did IBM hire tricky dicky to be their spokesman?
It has never been a question of if IBM would leave Dubuque; it has always been only a matter of when.
IBM'S history is relocate, get a lot of tax breaks, then move again to receive tax breaks from another city. If you think not ask the people of Raleigh, North Carolina.
"Throughout our 100-plus year history as a technology company, IBM's most important innovation has remained the 'IBMer'. We see employee engagement as key to both the success of IBM's brand and our ability to remain essential to our clients," says Dino Trevisani, president of IBM Canada. "We value and respect diversity, and as we continue to reinvent ourselves, we recognize the importance of staying true to our core values and culture of inclusion." ...
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(Apple CEO Tim) Cook worked at IBM from 1982 to 1994. Cook rose up the ranks at IBM and in his last job there he was “North American Fulfillment director, managing manufacturing and distribution functions for IBM’s Personal Computer Company in both North and Latin America,” according to Biography.com.
In July 2014, IBM and Apple partnered “to deliver Apple technology to big business,” according to the Wall Street Journal. IBM has since developed software for Apple’s iOS operating system, but it has been unclear how important the relationship is to either company’s bottom line. ...
IBM’s market capitalization is currently $171 billion. Let’s assume that Buffett would be willing to part with his shares for a 20% control premium — meaning that IBM might cost Apple $205 billion.
For now, Apple’s market capitalization is $743 billion — and it could borrow more money if it decided to use debt to help finance that $205 billion purchase. But it would take 28% of Apple stock to buy IBM at that price. ...
Ultimately, such a deal would only make sense if Apple could figure out how to turn IBM into a company that grows fast by selling products that businesses want to own. On the other hand, perhaps this is an execution challenge that is beyond the ability of any human being to master.
Those in the 55-64 age group are 50 percent more likely to be out of work than people in other industries and to have been out of work for longer, according to a recent survey by the ICT Vocational Training association.
The end result is that only nine percent of Swiss IT professionals currently in work are older than 55 (outnumbered even by another under-represented group - women, who make up only 12 percent of the Swiss IT workforce).
Being older, they're at least the bosses, aren't they? Well, no. The study found that only eight percent of management jobs were held by over 55s. Almost half of older IT workers were developers and analysts (accounting for around seven percent of people in those roles) and they occupied 12 percent of network administrators posts.
I had to laugh at the "intensive cloud training." If you consider a 2012 PowerPoint overview intensive training, it's no wonder IBM lags in that market segment. The 2014 training for cloud was all conceptual overviews harping on the various terms and buzzwords with no technical value included. -Anonymous-
I was skilled in social media and cloud before it became an issue in IBM whereby they scammed employees with pay 10% cut to train. Tools I managed had social media requirements in the pipeline. I doubt they do anymore due to lack of leadership now.
I used to consult the Smart Cloud teams in leveraging our core technology and business process into their offering. They wanted to recruit me to work on cloud up until the day I was added to RA list. At that time nobody in that area would talk to me. That was now since failed Smart Cloud Enterprise product. Thanks Karma. -Anonymous-
Pros: Working from home and some latest technical insight about the future trends.
Cons: Very unsettling environment and employees are treated as numbers not as humans. No teamwork in the company; everyone is trying to cover their back side. Management trying to brainwash employees with unrealistic market figures all the time saying that they are at front, but they actually loose money because they get rid of their valuable employees and the rest keep working with additional work and stresses throughout.
Advice to Management: Learn to stand on your foot rather than following advice from top management without even been able to question it.
Pros: Always working with smart, motivated people. The size of the company means there is a wide range of projects in different technologies and there is flexibility to move between projects. Flexible work environment that is understanding of times you may need to work from home. Opportunity to work with people across the globe. Management embraces diversity.
Cons: Raises are small so salaries fall way behind the current job market. Excessive number of meetings that can consume entire days, so the only time to get actual work done is off hours. Senior management is too far removed from the actually development. Too many levels of management.
Pros: Large company with diverse human and financial assets.
Cons: They don't value employee satisfaction.
Advice to Management: Benefits have eroded year after year for the past 17 years. IBM took away the traditional pension plan, and replaced it with an "enhanced" 401k. The enhanced 401k does not come anywhere close to the benefits of the pension. Fix this. Fix the ridiculous insurance benefits. Every year, IBM removes drugs from its formulary, leaving employees without medication, or with medication that they can't afford. In short...work elsewhere if you have any choice.
Pros: You have a lot of freedom to decide where and when you want to work.
Advice to Management: No advice, this company is doomed.
Advice to Management:
Pros: Have to respect the history. Company knows how to adapt to changing market conditions.
Cons: For a company that at one time would "never layoff" they have become quite insensitive. Demoralizing decent performers through "relative evaluations" and lack of opportunities and compensation.
Company has failed to deal with commoditization. Their answer is to get out rather than differentiate. Bleeding will continue until the company adjusts to lower margins.
Advice to Management: Stop moving execs around and start promoting internally. The process of bringing others in who haven't earned local business success is demoralizing.
Pros: Some flexibility in schedule. Work from home supported in some cases.
Cons: Severe disconnect between employees and executives/management. Competing agendas amongst executives and constant shifting of personnel/agendas at upper levels keep those who actually provide products and services (employees) spinning their wheels. Company unprepared for brain drain, seems to actually encourage it through layoffs / "cost-savings" / "restructuring."
Advice to Management: We're not a stock price. We're a technology solutions company. Or we used to be. When we dump an "unprofitable" business such as System x, we lose our foot in the door with many customers to sell other products and open the door for competitors to gain a foothold.
Pros: You can work remotely. The people you work with are generally nice. Even though the company is very large, it is so large that local teams tend to operate with a small company feel so collaboration and teamwork are common.
Cons: IBM may furlough you or cancel the contract with little or no notice. Also, IBM pays below market rate. The company is so large that business units are siloed and more concerned with their own agendas and budgets than corporate initiatives.
Advice to Management: Pay more attention to the FACT that your employees are human beings and NOT chattel to be treated with disregard for the impact corporate staffing whims have on them.
Pros: Diverse jobs, extensive amount of resources by brand, industry. Excellent thought leadership. Very strong commitment to advancing broad complex topics in the world. Very smart, collaborative and talented people. Working through transformation which is a challenge in the marketplace for all large mature companies. The right investments are being made but need to be made faster
Cons: Executive top heavy. Not as focused on treating their employees well any more. Complex organization and capabilities is both a curse and blessing.
Advice to Management: Management is worried about their employees being "engaged". They should treat their employees at the bottom better. We say we want people to sell strategically but we measure our people to perform tactically. Need to continue to refine measurements to remove the siloed nature of the business. GBS metrics are a constraint to the business with utilization being such a firm metric. We can't keep the good people. Makes it hard for the rest of us to do our job.
Pros: Top notch technology coupled with very knowledgeable people; politics was rampant in Information Management, particularly "DB2 bigots" (and nothing wrong with loving DB2, but there were many whose attitude was "DB2 or nothing" despite IBM buying out some top notch database technologies). Great benefits such as full medical, dental, and vision, as well as broad fund options for the 401K with an employer match.
Cons: No matter how loyal you are as an IBM employee, watch your back since (at least from my perspective) you may be laid off at any time.
Advice to Management: Never "mandate" that a first-level manager lay off an employee; sell off unprofitable (or very low profit) businesses first; if necessary, interview layoff candidates; also, don't just accept one manager's view of an employee — FIGHT for your employees by getting multiple (at least three) managerial perspectives, and VALUE those employees who have multiple years of tenure and can PROVE (e.g. document) the value they provide.
Personal Pension Account (PPA) and Future Health Account (FHA) are treated differently. A retirement bridge enables you to access PPA early but not necessarily the FHA. You have to be 55 on your last date of PAID employment at IBM to get FHA funds.
In determining your last date of PAID employment, you cannot add the retirement bridge period to your last day at IBM. You have to already be 55 on the day you stop getting a salary from IBM. In your case, even if you bridge, you will be younger than 55 when you stop being an active employee of IBM as a result of your job elimination. Therefore, you are not eligible to get the FHA. Find another job or sign up for Obamacare. -Sibelius-
Wondering why I received a copy this year, I looked at copies I'd previously saved up through 2009. Section 1.11.4 Amendments has changed. A new sentence in the first paragraph states:
"Further, IBM reserves the right to have the Plan purchase one or more nontransferable annuity contracts to provide your benefit under the plan."
A new paragraph has been added that states in part:
"If the Plan is terminated in full... Any Plan assets remaining ... will be returned to IBM."
There might be other changes. -Anonymous-
If IBMers would like to turn back the clock and have the real bridge to retirement for all who have 25+ years of service you have to join the Alliance and make it part of the contract. -Anonymous-
“The term ‘digital natives’ makes me cringe,” said Ingrid Fredeen, an attorney and vice president of NAVEX Global, which provides ethics and compliance programs to large organizations. “This is a very risky area because we’re using the term that has connotations associated with it that are very age-based. It’s kind of a loaded term.” Posting a job ad calling for “digital natives,” she added, is “really challenging and problematic” because it implies that “only young applicants need to apply.”
In fact, what I found very odd was that the "About Your Benefits Post Employment Summary Plan Description" effective January 1st 2014 did not address pensions at all. I may have missed it, as it is over 100 pages. But if I didn't miss it, obviously it was intentionally omitted.
I would think IBM will probably announce something of this magnitude at year end to get that stock moving as we all cringe. Wait till Bob Cringely gets a hold of that announcement! Clearly, the IBM Executive Management Team is running out of levers.
Per the information gleaned here in this very supportive Alliance forum by our fellow IBMers and fellow IBM Contractors, the 3Q RA list has been or is in the process of being finalized. Though there are probably further 2Q RAs coming...and we all know there will be 4Q RAs.
I cannot emphasize enough IBM family ... we would be in the dark about all of these horrific actions by the IBM Executive Management Team were it not for the tireless relentless efforts of the Alliance. Please consider joining. Respectfully, -Deb Kelly Proud Alliance@IBM member-
I don't have actual numbers but from my observations/experiences during my 36 years with IBM ... the numbers are very small. Most of those I know who returned to IBM, after being separated, returned as contractors through a contract agency (e.g. CTG). A few returned as Supplemental employees and even fewer returned as Regular employees (aka IBM Retreads). -DJA-
The above will work ONLY if you commence your disability leave BEFORE you are informed you will be terminated or before you are given any kind of bad appraisal. Going on a disability leave AFTER you were informed of termination or after you were given a bad appraisal will NOT protect you from being terminated. Nor will it enable you to delay your termination date.
So, yes, if you are only a few months from FHA eligibility and fear you may be fired even though you are not on a PIP or were not given a bad appraisal, consider taking the disability leave now to bridge the gap. Note that you will earn only a fraction of your monthly salary while on disability. So even though you may eventually get the FHA, you may or may not come out ahead. -BedRidden-
Premium expenses: HRA funds can be applied toward medical, prescription drug, dental, vision, Medicare Part B, and long-term care premium expenses. Out-of-pocket expenses: HRA funds can be applied to eligible out-of-pocket expenses include copayments, deductibles and coinsurance payments.
Your specific questions:
For details, check out link "HRA: How it works" on website at "https://medicare.oneexchange.com/ibm". Also check out IBM document USHR117 "About Your Benefits - Future Health Account" Jan 1, 2014 that can be found on the Fidelity Netbenefits website "https://nb.fidelity.com/public/nb/default/home". -Paul Bergeron-
Since everyone's situation details are different, it is hard to know exactly which provisions apply to your case. From my reading of the relevant documents
Since you worked for IBM for more than 5 years of continuous service, you have vested rights, which probably include the PRP. The Personal Retirement Provision (PRP) was funded between January 31, 1991 and December 31, 1994 but interest credits stopped when you separated from IBM.
Since you did not take an immediate lump sum distribution for PRP funds within 45 days of separating from IBM, payment was automatically deferred until you make a "retirement election" or reach age 65. The following applies to "vested rights income" which may or may not apply to PRP (I can't tell from doc).
Payment of your vested rights income (and PRP also?) normally begins on the first day of the month that follows the month in which you reach age 65. You may also elect to have your vested rights income begin early, depending on your length of service at time of separation.
If you have >5 but <15 years of service (i.e. your case), the earliest age you can start taking this "deferred income" is age 62 (see "1.8.2 Vested Rights Income before Age 65" in USHR113). The amount of benefit you receive is reduced from the age 65 amounts that may have been quoted to you by IBM when you separated, since those documents assume vested benefits will be started at age 65. -Paul Bergeron-
I am also eligible for HRA funds for Lockheed Martin and the Part D plan is not sufficient for eligibility (LM plan starting later this year). I will have to purchase another plan from One Exchange to use the Lockheed HRA funds.
Originally IBM did NOT allow the Part D plan to enable one to use the IBM HRA; they changed that prior to the plan implementation according to an One Exchange rep. IBM's money, their rules. I also use the IBM HRA for Medicare Part B reimbursement but this is only possible because I have the Part D plan. Plan accordingly. -Anonymous-
With 25 years of service, you have vested rights assuming that you did not already exercise those rights to get immediate benefits when you separated (which is sometimes possible). But it is unclear from your details what plan controls your vested rights: the "cash balance" plan that started in 1999, or the prior "pension credit formula". The ESC should be able to tell you which plan controls your vested rights and give you access to IBM documents which describes that plan. You should also ask about the Personal Retirement Provision (PRP) which was funded between January 31, 1991 and December 31, 1994, unless you took this as a lump sum when you separated from IBM. -Paul Bergeron-
Without someone representing us, i.e. a union, IBM can do what it wants to employees and retirees, at least in the US. That is why I joined as an associate member. It is not expensive. How many retirees that use this discussion are members of the union? My answer, NOT ENOUGH. Take out your wallets and join!
Upper management of US companies are totally greed driven and unfortunately US labor laws protect them and the companies, not the workers. (Thanks to the greedy, corrupt and incompetent US Congress which is bought off by companies and 1%ers). EVERYONE should also get involved and vote and maybe we can get rid of some of these corrupt Congress members. Just my opinion. Too many retirees just sit back and accept the status quo and leave the mess for our kids and grandkids to resolve, if that is even possible. -TOM1997RETIREE-
The 1993 bridge (which you and I accepted) was much better than the next year bridge. Those folks did not receive credit for their bridge years towards their pension (we did) and they received 6 months pay max as a buyout (we received 12 months max). Obviously down hill since then. (Thanks to Cookie Man and his follow ons).
Unionization is the only way to change the path this company is taking. IBM may still be able to unload all of its retirees by "selling" the pension plan to an insurance company (any lawyers among us that can answer if they can legally do that, may depend on how the pension plan is set up legally); we would then receive a pension from the insurance company (proceeds from an annuity I believe). Other companies have done this and retirees have lost big time in some cases. (Insurance companies went bankrupt; retirees' pensions in this case are guaranteed by the states, NOT the Federal Government [PBGC]; benefits would vary by state and are not very good in many cases). This is one reason why retirees should be joining the union. We CAN lose too; not just the current employees. Protect our rights, join the union NOW! -TOM1997RETIREE-
Alliance reply: The first thing you must understand is that you and ALL US IBM workers are considered "at will employees."
This means that IBM is not bound by any labor laws to obey IBM's own rules. If they decide to "mark you as terminated" that is their right, under the "at will employee" policy in ALL states in the US. There is nothing much that any "good litigation attorney" can do to fight IBM's decision to terminate you, rather than consider you "retired".
Even if you WERE considered as "retired", your retirement is still governed by IBM's retirement polices; their "rules."
As long as IBM works within their own rules and doesn't break any state or federal labor laws or terms of agreement regarding the 401(k) plan that THEY initiated in 1983 there is very slim to none chance that any attorney could win a judgment against IBM. Once again, your situation demonstrates why a union contract protects union employees' benefits and pensions if those things are negotiated, agreed to and signed by IBM management and the workers union on paper, legally.
The pension plan was frozen on December 31, 2007, not "end of 2008".
The "five-year average earnings" used in the formula is basically the average earnings for the highest five years of consecutive service after 1994 and before 2008, but there are nuances so read the SPD section "1.3.2 The Pension Credit Formula".
So earnings for 2007 can count towards "five-year average earnings", but earnings for 2008 or later years do not count. On the Fidelity Netbenefits website, the "Earnings History" table stops at 2007.
By "adjustment factor", I assume you are referring to the "Benefit Conversion Factor" (BCF) that "converts the total value of your retirement benefit into an annual benefit amount" as part of the "Pension Credit Formula". These are described in SPD Appendix A. There are a number of tables in Appendix A for different situations (retired, vested, joint survivor, joint surviver restore, Social Security leveling, etc) so it is unclear what applies to you.
The lookup tables require 2 ages:
From (b), you can see that the pension "freeze" also greatly affected the "Benefit Conversion Factor". The tables show years of age, but it is an approximation. The actual calculation done by IBM accounts for years and months of age. -Paul Bergeron-
If this is the case, you probably needed 10 years of service to be vested (see below). However, there may be some exceptions for some plan provisions, and "vesting" may be one of those exceptions.
So I recommend checking on this with the Employee Services Center (ESC) at 1-800-796-9876.
I found a 2003 Yahoo post on the topic "Re: [IBM Pension] Vesting requirements" at ... https://groups.yahoo.com/neo/groups/ibmpension/conversations/topics/49625 It states the following:
According to IBM's internal HR website (copied 10/26/1999):
- 8/12/1947: Vesting was first permitted with 20 years service
- 5/01/1959: Eligibility for vested rights income was lowered to 15 years
- 5/01/1969: Eligibility for vested rights income was lowered to 10 years
- 1/01/1989: Minimum service requirement for vested rights reduced to 5 years
Later in the thread, there is some discussion about whether the change to 5 years actually happened in 1989 or 1984, but neither of those dates helps you out. So again, I would check with the ESC to find out for sure. -Paul Bergeron-
I faxed OneExchange and told them they reimbursed me twice for dental $818.88 (2x), and to put the $818.88 towards my medical. They said I had to pay the $818.88 back to them. Needless to say I did not. I faxed, phone called, and written letters. They then said I have to get letter from medical provider that FloridaBlue was paid in full for 2015. I did that and faxed that to them. No reimbursement applied.
Mind you I paid medical in full DEC 2014 for 2015. This went on for FOUR MONTHS. Finally I decided to address the issue to the CEO of OneExchange and General Manager of OneExchange in Utah. Within a week I received two polite phone calls and I am fully reimbursed within a week. I hope that I will not have any future problems for 2016. By the way I pay in full by check. I do not use credit cards, nor allow anyone to take money out of my checking account unless I authorize it and OneExchange does not have my authorization. Good Luck! -Anonymous-
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