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To: KyrosL who wrote (72705)	2/27/2001 9:12:04 PM
From: chic_hearne	Read Replies (3) \| Respond to of 436258

IBM's pension plan is in very good shape. In fact it's overfunded at present Do you mean "current" obligations only? Does this take into account that many of their employees are boomers not yet retired?

To: KyrosL who wrote (72705)	2/28/2001 12:53:02 AM
From: Alias Shrugged	Respond to of 436258

Earlie - FYI IBM Pension Expense for US Plans (millions of dollars) The following figures has been pulled from IBM Annual Reports; figures for 2000 are estimates. IBM incurred $33 million of pension expense in fiscal 1993; they incurred $638 million of pension income in 1999. An educated guess would have fiscal 2000 pension income at $1,060 million. 00 99 98 97 96 95 94 93 SC 590 566 532 397 412 315 542 571 IC 2350 2404 2261 2215 2125 2098 2033 1909 ER -3800 -3463 -3123 -2907 -2701 -2542 -2499 -2385 AM -200 -145 -124 -125 -121 -123 -65 -62 PE -1060 -638 -454 -420 -285 -252 11 33 Act. Ret 6397 5240 6193 4849 5500 -327 3990 Act.vs.exp 2934 2117 3286 2148 2958 -2826 1605 Cum gains 12222 9288 7171 3885 1737 -1221 1605 Pension Expense has four components: Service Cost, Interest Costs, Expected Return on Assets, and Amortization of Unrecognized Amounts (gains/losses, transition amount, etc). Plan assets have been growing rapidly due to the bubble; this has powered the increases in expected return on assets and produced the upswing in pension income. Since 1993, actual return on assets has exceeded the expected return by $12,222 million. As of 12/31/99, Plan assets exceed the projected benefit obligation by $11,150 million, of which $3,784 million has been recognized on IBM's balance sheet. 12/31/99 98 97 96 95 94 Proj Ben Oblig 34434 36561 33161 29729 30235 25783 Plan Assets 45584 41593 38475 34281 31209 26780 Excess Assets 11150 5032 5314 4552 974 997 Unrecognized gain/loss -7003 -1289 -1901 -1421 1976 1224 transition -632 -771 -911 -1052 -1193 -1334 **benefit chng 269 174 190 193 230 248 Pension Asset 3784 3146 2692 2272 1987 1135 on Bal Sheet