Multinationals ditch final salary pensions in US

Computer firm IBM is closing its US final salary pension scheme to existing members and giving them personal pensions instead.

The company said the change, from January 2008, would give it more control of its pension costs.

In conjunction with similar changes being considered for staff in other countries, IBM will save around half a billion dollars a year.

Randy MacDonald, a senior IBM personnel officer, said: “We’re taking these actions to better control retirement plan expenses, position the company for business growth and competitive strength and preserve employees’ earned retirement benefits.

IBM closed its final salary scheme to new entrants at the start of 2005.

A similar policy is being adopted by the computer firm Hewlett-Packard this year.

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