The Association of Members of
IBM UK Pension Plans (AMIPP)

This page created 11 Aug 2002  Last update 29 June 2006

More Information for Employed Members

 

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".