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8 January 2001
Description
The IBM C-Planners' Group was formed to address concerns on how IBM is
managing the pensions of IBM UK employees.
IBM claims that the C-Plan(*) and the M-Plan are a single fund with two sections.
We believe, because they serve different sets of members, the contributions
are different, the benefits are different and they operate under a different
set of rules, that they should be considered to be separate funds.
However, IBM has used the surplus from the C-Plan to fund the M-Plan instead of
being used to benefit those members who in past years have contributed a proportion
of their salary.
The Trust Deed governing the C-Plan was amended on 24th February 2000 without the
knowledge of C-Plan members.
* Note:For convenience, the term 'C Plan' refers to the 'Defined Benefits'
section of the IBM Pension Schemes(s). In the discussion below this may include other
similar plans (e.g. N,E,A,B,Q & T Plans).
Mission Statement
We intend to ensure that all contributions to the C-Plan and any surplus accruing since the plan was closed
are used for the benefit of C-Plan members.
We will require that any changes to the Trust Deed governing the C-Plan, which is now closed, should
only be implemented with the consent of members and that any changes already made without their consent should be
rescinded.
We maintain that, if IBM takes contribution holidays, then all retirees should be treated
equitably - or in other words, if M-Plan retirees are granted annual increase of 100% RPI
(or 5% if RPI exceeds 5%), then C-Plan retirees should be treated the same.
As IBM has taken contribution holidays since 1997, an annual increase
of 100% RPI for C-Plan members should be backdated to January 1997.
We intend to use all ethical and legal means to argue our case in whatever forum seems appropriate.
Notes
- The C-Plan is a contributory plan with members paying (or who have paid in the past)
a proportion of their yearly salary.
The employee had to contribute 4% of salary to the fund.
This was part of the salary package and not a 'loan' by the
company which could be reclaimed later.
Money has also been transferred in from other schemes.
- We estimate the current surplus to be £700M and there are approximately 23,000 C-Plan members. This
equates to over £30,000 per member. The recorded transfer of funds from C-Plan to M-Plan sections
(1997 to 1999) is £24M, or approximately £1000 per member.
Strategy
Our immediate strategy is to obtain the support of as many C-Plan members as possible.
To this end we have provided a web site which contains a comprehensive source of information
for those who wish to understand the situation.
All C-Plan members who wish to offer support are encouraged to register their names on the website.
Once we have sufficient support, we will call a meeting to present and discuss the available
information and to decide upon further actions.
We are currently awaiting the decision of the Pensions Ombudsman - see the
current situation.
In addition there are several members progressing complaints through the IBM Internal
Dispute Resolution Procedure (IDRP) for which we await the outcome.
A number of C-Plan members have also written to their MPs appraising them of the
situation.
Information
For more information please see the web site:
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Please copy/print this statement and circulate it to anyone who may have an interest in this topic.
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