Class Post IV

In an article posted at CNNMoney there is an interesting run down of "Old School" companies (Verizon falls under this as they are a conglomerate of formerly established firms) that are freezing their pension plans. Many of these are a direct effect of issues being encountered both on their bottom lines as well as what is being seen across their industries. In a big surprise, IBM froze their plan. Both Verizon and IBM are increasingly competing with tech stars that never adopted the tradition pension or benfits plans, keeping thier cost down. Also with the addition of foreign competition that already competes at lower marginal costs, companies like Verizon have no choice if they want to keep costs down and compete over the long haul. This occurence with the likes of GM, and the airlines is no surprise as they have been hurting for a while. Seeing it in "healthy companies" come as a surprise to many but shouldn't. If you are with these firms, consider yourself lucky. At least your parent company is having the foresight to do something now instead of waiting until it's to late (Delphi, UAL, Delta...)