Posted by Ernie Pullen on 28 October 2000 at 20:51:26:
I have today sent the following letter to the MP for the consituency of Romsey which includes Chandler's Ford.
Mrs Sandra Gidley, MP
House of Commons
LONDON
SW1A 0AA
Dear Mrs Gidley,
I am writing to you concerning the manner in which my previous employer has merged the funds of two of its pension schemes to the detriment of many of its former employees now in retirement.
I worked for IBM at its development laboratories at Hursley for 31 years until I retired in 1991 having been granted a pension to which I had contributed a fixed amount of my salary ~ initially 5% but later 4%. The pension scheme is known within IBM as the 'C-Plan'. The scheme was superseded in 1997 by a new scheme known as the 'M-Plan' for current and new employees. I understand that the change was made to satisfy new legislation whereby future IBM pensioners are to be granted annual increases to their pension equivalent to 100% of the going retail price index or 5% of their pension whicever is the smaller. Yet, 'C-Plan' pensioners, such as me, receive 'discretionary' increases from the pension fund on an 'ad hoc' basis equivalent to only 70% of RPI.
The success of the investments made by the Trustees of the 'C-Plan' pension fund has enabled IBM to take a 'contributions holiday' over recent years. Furthermore, they have apparently taken funds from the 'C-Plan' to bolster the 'M-Plan'. In essence the better pensions available under the 'M-Plan' are being subsidised by the contributions of former employees who retired under the 'C-Plan'. I strongly contend that this is wrong, if not illegal, and would be most grateful if you would pursue the matter in Parliament on my behalf.
Yours sincerely,
Ernest Pullen