Posted by A.N.Other Employee on 20 October 2000 at 08:35:04:
In Reply to: Risk and Defined Benefit Scheme posted by employee on 11 October 2000 at 13:02:21:
Two points.
1) Even if the company does bear the risk, it is in a much better position to do so than individual pensioners.
2) I believe either IBM or the IR did it to us earlier. When I joined IBM some 15 years ago I seem to remember that the FPE was based on the BEST 12 consecutive months earnings in your final 3 years of service, then it became the AVERAGE of the final 3 years. Not a lot of difference for those on a fairly flat salary and in times of low inflation, but a big one for those with pensionable bonuses and/or commission or who have significant rises in their final years.