|
The AMIPP
website has a section on South Africa. In 2005 we
told you of the plan for the elected trustees to take
over much of the IBM South Africa pension scheme. That page linked to
a letter explaining the prospects to scheme members.
We can
now report that the plan will go ahead. The retirees will be given the
opportunity to take their pension, including reserves and surplus, out of the
Fund and be given the opportunity to join a "pensioners only" fund, without IBM,
or put their money into an annuity. The surplus of the Fund will be divided with
2/3rds going to the members and 1/3rd to IBM. As most retirees are
expected to leave the IBM fund, it might well be dissolved in a year or two.
Obviously, there are differences between the UK and South Africa. The
South African regulations call for half of the trustees to be member elected.
The UK regulations specify one third, and are not expected to change to one half
until 2008 or beyond. The South African scheme has a considerable
surplus. The UK scheme does not. (Although it would have had a
considerable ongoing surplus if it received a large part of the £2 billion that
was the debt of the employer, which the Trustee could have insisted on calling
in.)
So South
Africa proves that if there are enough bold member elected trustees then member
interests can be prioritised. Regrettably, the UK has not matched that.
|