119. IBM Corp's retirement plans committee had recently approved guidelines for approving increases including a cumulative inflation threshold of 7%. The guidance given by IBM Corp was that expectations should be managed. A draft reply to the Trustee was then considered. The note of the meeting says

"It was pointed out that the essence of a discretionary practice was that it was subject to change. However some members felt that the Trustee had relied on assurances given by the Company in December 1996 in giving their consent to the Company's proposals for restructuring. Therefore the Trustee would feel concerned at any apparent change at this time. The HR Director explained that the communication would end up in the hands of 30,000 employees and pensioners who would look very carefully for any signs of a change .... particularly in light of the recent publicity given to changes in IBM's pension plans in the US.

"In the view of the Board, the submitted draft risked being viewed by the Trustee as provocative. While the communication should reflect the various factors to be taken into account by the Company, it should be toned down by not implying so strongly that the levels and intervals of future increases might change. Also the proposed condition that the Trustee had to note the Company's policy and approve the increase should be removed."

Well, we expect you always knew your expectations were being "managed" downwards.  Some retirees have not allowed their expectations to be managed down from the promises made when they were working.