About 21,000 IBM Corp employees who retired before 1997 could receive good news in their dividend checks starting this September. The prospect comes after Big Blue announced plans to raise certain retiree pension payments for retirees who were not able to participate in the company”™s 401(k) plan.
But not all the details are worked out yet, because the raise is “a work in progress,” said Doug Shelton, a spokesman in Armonk for IBM.
The increase will affect about 42,000 retirees who retired before 1997. About half of those who retired before 1997 will be eligible. The goal is to raise payments to those who were not able to participate in the 401(k) plan.
How the change in pension checks will be calculated and who will receive additional money has not been worked out, Shelton said. Authorization for the increase was granted at an IBM Corp. board meeting April 29. The raises will take effect beginning Sept. 1.
Some pensioners who retired before 1982 could see a raise of more than 21 percent in payments, as much as $180 a month. Others could see less. A fifth of the affected retirees may get a raise of more than 10 percent, Shelton said. IBM’s last pension boost was effective Jan. 1, 2001, affecting about 90,000 pensioners.
IBMers who retired before 1997 will receive a letter soon about the pension adjustment, Shelton said. The Employee Service Center at (800) 796-9876 will field calls.
