Posted by Roger Burtenshaw on 16 October 2000 at 18:38:41:
Looking at the earlier N Plan Postings which discusses people returning to the N Plan, I believe that these are examples of the 'Pension Misspelling Scandal', and nothing to do with the misappropriation of C Plan funds by IBM. Nor does it relate to any comparison between the benefits of the N or C Plan.
Possible background to Pensions misspelling.
When IBMers took earlier packages, and were offered 'Financial Advice' funded by IBM, many were advised to move their N Plan (and C Plan) assets from the N or C Plan to an Insurance Company Personal Private Pension. This gave the Financial Adviser a large Commission Payment, whilst the Insurance Company gained significant assets.
The Financial Services Authority has ruled that in most cases this was not 'best advice' to the individual, as the eventual pension would be lower.
As a result, the Insurance Companies are required by the FSA to 'buy' affected people back into their original Occupational Pension Plan.
So people coming back as a result of the Misspelling bring with them a pot of money (supposedly) equal to the cost to the Pension Plan.