69. The paper then reviewed the advice the Trustee had been given and the
various powers of Trustee and employer in the trust documentation. It said that
in the period leading up to the implementation of the above decisions, the
Trustee and its advisers had requested the Principal Employer to-
• provide LPI increases from the resources of the Fund (ie without any
adjustment to benefits or employee contributions) and;
• guarantee increases to all pensions in payment at a minimum of 70% of RPI (ie
to change the funded discretionary practice into a guarantee).
The Principal Employer was said to have agreed to the first but refused to agree
to the second request but had confirmed that it was not its intention to vary
the practice of awarding discretionary increases to pensions in payment which it
had operated for a number of years. Three of the complainants comment that prior
to 1996 the Trustee was not making proposals about increases in pensions: the
proposals were coming from the Human Resources Department of IBM UK.