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IBM Offers Incentives to Staff to Retire by End of 2013

International Business Machines Corp. (IBM), the world’s largest computer-services provider, has offered incentives to some long-serving and senior U.S. employees to retire by the end of next year.

Eligible employees who volunteer to retire by Dec. 31, 2013, may work 60 percent of their hours for 70 percent of their pay and retain full-time equivalent benefits, Doug Shelton, a spokesman for Armonk, New York-based IBM said today.

The eligible include some of the company’s most senior and experienced employees -- those with more than 30 years at IBM, those older than 55 who have worked there more than 15 years, and those older than 62 with more than five years at IBM -- provided they had satisfactory performance ratings in 2011 and meet some other criteria.

The so-called transition program follows IBM’s efforts since 2005 to help some full-time employees move into teaching and a plan introduced in 2008 that encourages staff into public service.

“It’s strictly voluntary, but provides incentives to keep retirement eligible employees on board to give them time to plan for what they want to do after they retire,” Shelton said. “It allows the company to plan for their retirement as well, because we’ll be in a better position to identify what skills and resources we need as people retire.”

To contact the reporter on this story: Beth Jinks in New York at bjinks1@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

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