Thursday, December 09, 2004

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Mercury Software has a product called "IT Governance Center". Did Scott Adams think up that name?! Yeccch. 10:00:32 AM    comment []

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The NYT has an article that says, for new hires, IBM is replacing its traditional defined-benefit pension with an enhanced 401k. Instead of the usual match of 50% of 6% of salary, they will match 100% of 6%. I think that is a good thing, and many more will follow in the next few years. There are too many problems and unknowns with defined-benefit (just ask the airline pilots). Or consider the potential effect of inflation, if "defined benefit" means defined absolute-dollar benefit, with no provisions for cost-of-living inreases proportional to inflation. Better to know exactly where you stand. (Not to say there aren't problems with 401k's, such as non-enrollment, borrowing, and premature cash-outs.) When I estimated the value of the pension at my previous employer, Otis Elevator, my ballpark was that it was equivalent to roughly 3% of income. So it is interesting to me that the new, enhanced IBM 401k provides exactly that additional incremental value. I would take it. I just hope they have automatic enrollment. 9:27:52 AM    comment []