Sunday, April 29, 2007

What? Me Worry?

My desk was so messy that I couldn't find anything on it or in it, still hadn't filed away last year's records, etc., etc.  So, after the movie this afternoon I decided to tackle the top of my desk.  ... and I'm almost done, but this stopped me:



A letter from IBM postmarked March 16, 2007.  Enclosed was a 2005 (what, 2005??) Summary Annual Report which summarized annual financial reports.  IBM is required to file said report each year - for the previous year.  OK, so the Feds aren't fussy about timely reporting.



But... the thing that made my eyes pop out of my head caught my eye was this:

SUMMARY ANNUAL REPORT FOR IBM BENEFITS PLAN FOR RETIRED EMPLOYEES (that's me)

... bla bla bla



Basic Financial Statement:  The value of Plan assets, after subtracting liabilities of the Plan, was $8,412,470 as of December 31, 2005, compared to $50,142,996 as of December 31, 2004.  During the Plan year, the Plan experienced a decrease in its net assets of $41,730,526.  During the Plan year, the Plan had a total income of $688,897,738, including employer contributions of $516,815,746, participant contributions of $170,595,865 and earnings on investments of $1,486,127.  Plan expenses were $730,628,264.  These expenses included $60,645,169 in administrative expenses and $669,983,095 in benefits paid to participants and beneficiaries.

Do I read this right?  They started 2005 with $50 billion and ended the year with $8 billion?   Or, is it possible that the retirement fund that is going to pay me a monthly check the rest of my life only has $8 million dollars?  I know IBM has been changing around retirement benefits for current employees (aka no more pension plan), but...



Holy Shit!!!



I think I need to read those financial statements when they come next time; although I'm not sure what I would do if the news really is as bad as it looks.



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