All scheme members become retirees
eventually, unless they die first, but there are some topics that are
only relevant at or before retirement - contributions, choice of scheme,
AVCs, salary sacrifice, lump sums from pension sacrifice...
29
June 2006 - This page linked to from the Home page.
29 June 2006 - How a
Trade Union sees the IBM situation.
12 February 2006 -
Considerations for employee choices.
29 August 2005 -
Transfer Values
22 February 2004 - The
mechanics of AVCs.
24 Aug 2003 - Unions
and Works Councils
28 Aug 2002 -
Underfunding, Closure and Termination
Employees will share some concerns with all the members, about how IBM
is managed, accounting, buybacks, and particularly layoffs. They are
particularly concerned with pensionable pay, and with the low value of
the M-plan or the possibilities of being forced out of C-plan. We
plan to add to this section, but meanwhile here is what the deeds say
about pensionable pay. You can't draw any comfort from reading this (since the
"Excluding" section has a couple of "any other"s
that effectively say IBM can make anything into nonpensionable pay), except where there are
explicit inclusions.
Paraphrased, the deeds say that in 1983,
for the C-Plan, bonuses, commissions, overtime earnings and shift
allowance were moved from pensionable to nonpensionable. (That is the
change from (b) to (a) below.) Since that cannot effect M-plan
members the deeds wording for them is simpler.
If you are in the M-plan read the red bits
below. If you are in the C-plan read the blue bits. Either
way read the black and green bits.
NOTE THIS IS AN ACCOUNT OF THE WORDING BEFORE
2006 CHANGES Pensionable Earnings
(a) in relation to a C Plan Member for any period commencing on or
after 6th July 1983 and in relation to a B Plan Member, means the
greater of:
Pensionable Salary
means in relation to a Member of the Money
Purchase section means the greater of:-
(i) his gross basic remuneration from the Employer during the
relevant period:
INCLUDING:-
an amount equal to any London Allowance which has been continuous
payable to him since before 7th August 1993 (unless he commenced his
present period of Pensionable Service on or after 7th August 1993) in
payment; and
EXCLUDING:-
bonuses: commission; overtime earnings; benefits
in kind; any allowance payable to a Member in lieu of a motor car
normally supplied by an Employer; any element of
shift allowance; any payment made to the Member in
lieu of all or part of surrendered holiday entitlement; any payment made
to the Member under the Customer Satisfaction Plan; any payment made to
the Member under the Business Achievement Incentive and/or the Sales
Incentive Plan; any payment made to the Member under any announced
Variable Pay Scheme; any other fluctuating emoluments; and any other
additional monetary amounts (if any) payable by way of. or in respect
of. expenses incurred whether or not such additional monetary amounts
are taxable:
OR
(ii)
if the Member's earnings are subject to an incentive plan, his Reference
Salary including
excluding an amount equal to the London Allowance (where
applicable):
(b)
in relation to an N Plan Member or an E Plan Member for any period of
one year and in relation to a C Plan Member for any period of one year
ending before 6th July 1983. means his monetary remuneration from the
Employer chargeable to tax as an income of his office or employment for
that year:
INCLUDING
an amount equal to the London Allowance payable to a Member (if any) and
(from the date of receipt only): bonuses:
commissions; overtime earnings; any element of shift allowance; and
Director's fees.
EXCLUDING
(The things in green
above)
"Reference Salary" means, in
relation to a B Plan, C Plan or M Plan Member (whose earnings are
subject to a Sales Incentive Plan) his annual target earnings (commonly
known as "100% salary") as determined from time to time by the Employer.
(There are also some relevant rules about
ill-health and an Inland Revenue maximum.)
Where the deed quotes above use
capitalised terms it means the term is defined elsewhere. However,
that doesn't help much. "Business Achievement Incentive", for
example, is defined only as "a plan operated by the Principal Employer".
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