How likely is it that IBM will terminate the pension plan?
It is impossible to say for sure what IBM will do. Some people think that IBM and the pension industry in general are making threats of termination to get Congress and the Treasury Department to change the rules governing pension plans so that they are less expensive for the companies. They were making similar threats even before the courts decision in the IBM pension lawsuit, so this is nothing new. Since IBM has always prided itself on the benefits it provides and acknowledges that such benefits are necessary to attract and retain employees, many people think that IBM would be making a big mistake if it terminated the pension plan. On the other hand, if IBM truly believes that a pension plan that does not discriminate against older employees is too expensive, then it might terminate it and replace it with some other type of plan. A plan freeze is not the same as a plan termination. If IBM takes the additional step of terminating the plan, they would have to purchase annuities for all
