Posted by John Tuttle on 24 October 2000 at 21:28:40:
In view of the pensions situation,I sent the following letter yesterday:
Quinta Cerro da Pinha
Cardal-Burgau
8650-040 Vila do Bispo
Portugal
Kevin Waller
Pensions Services Manager
I.B.M. North Harbour
Portsmouth
Hants. 24th October 2000
Dear Mr Waller,
I am very concerned by the contents of your October 2000 letter.
As an I.B.M. retiree since October 1999, I suddenly find that after 11 years, when any pension increases have been a percentage of my gross pension, that my first increase since my 65th birthday is based on only about 2/3 of my pension, resulting in an increase of only £11.76 per month (1.4%) which is both derisory and insulting.
The I.B.M. Pension Scheme was a contributory one, into which I paid a significant percentage of my salary over a long period. My State retirement pension is quite separate from my I.B.M.occupational pension. You should not have changed the formula for calculating my increases just because I am now receiving S.R.P.
This change, unless reversed, is going to have a progressive and massive detrimental effect on my occupational pension. The I.B.M. 'C' Plan pension of which I am a member, is cash- rich by a calculated £700,000,000 (ignoring illegal transfers to the 'M' Plan) due in part to a history of only making miniscule awards. It is long overdue that I.B.M. adequately rewarded its retirees through the pension fund. It is our money and the cash has always been available.
I anticipate that in replying you will state that what the company has done is legitimate but it does not consistently have to do the minimum that legislation permits. Its mean attitude has resulted in I.B.M. retirees being at the bottom of the league of occupational pension payments from major U.K. companies.
I would suggest to you that 'C' Plan pensions should have an annual review, that increases should be calculated on the gross amount, that retirees should receive the full percentage change in the R.P.I. as a very minimum increase. Even better would be to link it directly to the full rate of inflation, or is that to remain the preserve of Civil Servants?. Just be forward-looking Mr. Kevin Waller, one day you will be an I.B.M. retiree but by then it will be too late for you to influence changes.
Please review with the Trustees and advise.
Yours sincerely,
John Brian Tuttle
Personnel No: 089066