When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

IBM Settles Pension Suit in Part, Continues Appeal

IBM said Wednesday that it has reached a partial settlement in a massive lawsuit alleging that it discriminated against older workers when it switched pension plans in 1999. Under the terms of the agreement -- which is subject to court approval -- the computer giant will pay at least $300 million to settle certain claims in the complex lawsuit, which by some estimates involves more than 200,000 workers and former workers.

The partial settlement also stipulates that if IBM loses its appeal of the broader case, its liability will be capped at $1.4 billion, in addition to the $300 million. The lawsuit centers on IBM's conversion to a controversial cash-balance pension plan. These plans provide portable benefits that accrue more evenly over a career, even if the worker moves from company to company.

News source: NewsFactor

Report a problem with article
Next Article

Users say Microsoft's Money is broke

Previous Article

Calif. OKs Anti-Spyware, Swapping Laws