As someone living on my IBM pension I was worried by the news of further troubles at Equitable Life, so I sent the attached to the IBM Pensions Trust Enquiry line:
----------- Extract from note to Pensions Trust -------------
I am concerned by the recent announcements of plans to cut the pensions payable at Equitable Life. I am even more concerned by the realisation that I really have no idea on whom I am relying for my pension in the long term.
For instance, the page on the pensions website that describes the C-Plan says:
'C plan provides benefits on a defined benefit/final salary basis. This means that you are guaranteed a level of pension based on a percentage of your earnings and your years of membership in the plan, regardless of the amount paid in by yourself and the Company.'
Can I ask you who provides this guarantee. Is it a guarantee from IBM Corporate, or from IBM UK, or from the IBM Pensions trust, or from a set of individual pensions companies in a proportion related to the way in which my pension is made up? In other words, faced with, say, a 40 year future life possibility, on whose long term continued survival and success am I dependent?
Second, to what extent is my AVC pension integrated with my basic pension?
Finally, returning to the Equitable Life pensions cuts, can you tell me whether I will be affected by this, and whether it will apply to my whole pension or just to the Equitable Life portion of my AVC investment.
---------- End of note to Pensions Trust --------------
The reply, although it does not answer my question about guarantees, may be of interest and reassurance to others living on their pension:
-----------------Reply ---------------------------
Your pension was calculated using your final pensionable earnings and pensionable service within IBM. You pension is currently already in payment, therefore your AVC's have already been disinvested from Equitable Life and have been brought 'in house' to provide a pension for you.
Therefore the changes which are happening at present will not affect your pension in any way.
----------------- End of reply ---------------
P.S I will have another try at asking about the 'guarantee' but meanwhile does anyone else know who guarantees the IBM pension?