In the tally Tuesday, 755.4 million shares were voted against the proposal, while 299.7 million, or 28.4 percent, were voted for it. Some IBM employees have complained that they are losing benefits they had counted on due to a mandated changeover from the previous plan to a cash-balance plan designed to offer more immediate benefits and flexibility. The new plan is designed to be appealing to employees who are unlikely to stay with one company throughouttheir careers. In a traditional plan, workers accrue most of their benefits at the end of their careers. Under a cash-balance pension plan, companies pay a fixed percentage of employees' annual salaries toward retirement benefits each year.
Workers build up money evenly throughout their careers.
Employees can also take pension funds they have accrued at one company and move them if they take another job. IBM since September has allowed a choice for employees at least 40 years old with at least 10 years of service. That option allows about 65,000 employees to retain their old pension package if theyso choose. Leas said the issue is likely to be put before shareholdersagain next year. Louis V. Gerstner, IBM's chief executive officer, said at the meeting the pension changes are necessary to keep the companycompetitive.