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

This page created 24 March 2006

Report on Hursley Retirees AGM, March 2006

 

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.)

Paul Gibson gave the presentation for the Lab.  It was avuncular and upbeat - "Hursley is growing", 2005 was "Great year, great results".  There were reminders of the flood of money still being earned by projects that retirees are familiar with.  The importance of CICS and the messaging products to customers was stressed. 

The Retiree Association had a quiet successful year, judged by the absence of coaches going to the wrong place, etc.  The average number going on the trips was 135, slightly down on last years 148.   The IBM subsidy was slightly up at £27,825 because that is based on £25 for each Hursley retiree.

The chairman read out the names of the 17 retirees who had died during the year.  (There were 5 in 2004)

David Newman (the Trust Manager) gave the "state of the Trust" presentation.  IBM in general had a good 2005 with profit of $8 billion.  (2004 was $7.5 billion)   Hursley also had a good year.

The Trust's investments had a good return - 19% in 2005.  [Up from 12% in 2004] That is similar to other large trusts.

David explained that current lower interest rates, coupled with people living longer, had increased the amount the actuary calculated would be needed to maintain the final salary plan and that IBM had decided to reduce the benefits.  Protection against inflation, although reduced, will be delivered as annual increases, in April. 

David noted that the £500 million that IBM had paid into the fund was expected to lead to the deficit being extinguished.  In answer to a question about how the £500 million compared with "contribution holidays" he said that from memory he thought the total of the holidays was noticeably less.  [This is really an actuarial question because pounds now are not the same as pounds of ten years ago.]    

Mark Wakefield, the Corporate Community Relations Manager who is based in South Bank described his job (implementing, for the UK, IBM's global strategies on Corporate Social Responsibility etc.) and urged participation in two schemes.  "On Demand Community" provides additional help from IBM where IBM employees and retirees are involved in community projects.  3000 people are registered with this scheme in the UK, including 160 retirees.  (Although that does not mean they are all getting the additional help.  An IBM internal body decides who does get it).

"World Community Grid" provides the framework to incorporate your PC into an enormous grid  of computers solving problems that need that sort of calculation.