Posted by Rod Instrall on 11 October 2000 at 07:21:42:
In Reply to: Retail Price Index posted by Bryan Balfour on 10 October 2000 at 16:47:10:
: A couple of questions;
: 1) has anyone come aross in the bumpf from IBM that it bases pension increases on 70% of the change in RPI (or is it the % change in RPI) or is this just hearsay?
: 2) has anyone ever checked their % pension increases against this movement in RPI? If so can they share the figures with the rest of us? My attempts give results that are all over the place.
1) Yes. In the 1994 Handbook for Retirees (but not in the new one), it says:
'It has been the company's practice to review pensions on a regular basis and to make discretionary increases at varying intervals. The Company therefore makes a special allowance for increases at 70 per cent of the Retail Price Indexz within its annual contribution to the Pension Plan.'
2: I have created a spreadsheet covering the period from November 1982 to today. It shows the changes in RPI and IBM pension. The pension varies a bit, but it's close to 70%. If I can master the technology, I'll make it available to all.