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Article: SBC bucks trend by moving to traditional pension plan.
- Article from:
- San Antonio Express-News (San Antonio, TX)
- Article date:
- January 26, 2005
CopyrightCOPYRIGHT 2005 San Antonio Express-News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Sanford Nowlin
Jan. 26--San Antonio-based SBC Communications Inc.'s recent decision to reinstate a traditional pension plan for managers bucks a major trend in corporate compensation.
The telecommunications giant last month told managers it will give them a traditional pension so it can better reward those who stay with the company over a long period. As a result, it will move away from cash balance plans and hybrid plans it implemented in the 1990s.
The prevailing trend in U.S. industry, however, is to switch from traditional pensions to cash balance plans -- sometimes called defined contribution plans.
Under these plans, ...