IBM May Introduce Cash-Benefit Pension

International Business Machines Corp. may soon introduce a new type of pension plan for its 141,000 U.S. employees, said a person familiar with the plans. The Wall Street Journal reported the new type of pension plan could save the company $200 million a year. IBM hasn’t contributed to its pension plan since 1995 because with $41.5 billion at the end of 1998, it had more than enough money to cover its liabilities. An IBM spokesman declined to comment. The proposed cash-balance plan would provide more incentives for younger employees, said the person familiar with the plans. Armonk, N.Y.-based IBM is expected to make the final decision on the plan in the next several months.