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

This page created 23 March 2005

Report on Hursley Retirees AGM, March 2005

 

It is the season for AGMs of IBM's social Retiree Associations and as in previous years the Webmaster welcomes reports on them.  This report is on the Hursley AGM and provided by Brian Marks.

The outline format of these meetings has been the same for many years - somebody talks for the Lab, the association officials describe the association's year and finances, and somebody from North Harbour describes how the Trust is going.  (It is very long time since IBM senior management attended, or a trustee-director spoke for the Trust.)

Andrew Bainbridge gave the presentation for the Lab.  I worked closely with Andrew long ago and know that as well as being quick to absorb and analyse facts he is also a good "know your audience" speaker.  So this year's talk had less about how good Hursley's latest projects were and more reminders of the flood of money still being earned by projects that retirees were familiar with.  The importance of CICS and the messaging products to customers was stressed.  There was even a harking back to the Labs earliest successes, in the mention that Storage Technology at Hursley was performing well.  

The Retiree Association had a quiet successful year, judged by the absence of coaches going to the wrong place, etc.  Turnover was £44.7K  (18% up on 2004) of which IBM subsidy was £27.2 (3% up).

The "state of the Trust" presentation differed from previous years because it was not given by Kevin Waller.  Kevin's replacement, Anne Conroy, attended the meeting but it was David Newman (the Trust Manager) who spoke and answered questions.  David explained that Kevin was not gone from the pensions scene because he was working with Human Resources (in older terms the IBM UK Personnel department).  David went as far as to speculate that Kevin could return to the Trust's administration one day as a replacement for David himself. 

David covered a dozen topics ranging from envelopes for payslips to tax simplification legislation but, as you would expect, the £900M deficit topic led to the most attendee comment.  The £900M corresponds to about a £40K shortfall for each scheme member associated with it.  David explained that the "guarantee" negotiated was intended to correct the situation over a 10 year recovery period.  There was discussion as to whether this represented a recent more generous Company attitude (since the £900M deficit arose in a period when the Company was unilaterally deciding what employer contributions to make) or was the result of recent legislation requiring trusts to have such recovery plans. 

David noted that the £900M was a "snapshot" of December 2003, and that returns on investment were 12% in 2004, so that the road to recovery was already embarked on.

David mentioned that, amongst other proposals, the Trust directors had suggested (unsuccessfully) to the Company that increases giving full protection against inflation should be provided.  I had not heard this said publicly before, although the words in recent communications had led some people to deduce it.