In Reply to: Re: What if I had stayed in the N plan. posted by Alan Palmer on 22 November 2002 at 17:05:53:
Thanks for the explanation Alan. The only one I ever received was 'that's the way it is'.
So to put it another way, a significant portion of our legitimate pension entitlement was withheld based on the spurious application of an Inland Revenue rule that was no longer in effect. Sounds like theft to me. No wonder the anarchists are on the streets.
I guess employees need to look closely at their payslips - just in case the company tries to slip in tax deductions at 83%...
: Essentially IBM introduced the CPlan MAX a short while after the C plan started as it realised that those who joined IBM before age 25 and who transferred from the N Plan asap would beach a government limit on pension percentages at various rates up to age 60. When the gov dropped that percentage limit, I tried repeatedly to get IBM to go back to the ORIGINAL formula which didn't have the Max calculation and that was my main thrust to OPAS. Yes I too lost about 17% when I was purged from IBM at age 54. In addition, the C Plan Max calc favours those who do their years at an older age (BEFORE the age calculation rightly does so) So if one does 15 years from 37 to 52 one is worse off BEFORE AGE factor than if one does say 42 to 57! TERRIBLE and, I would have though unsustainable.