Re: Company return of Fund Assets - OPAS reply

Posted by Dick Bond on 08 November 2000 at 10:28:33:

In Reply to: Re: Company return of Fund Assets - OPAS reply posted by Pete Warren on 04 November 2000 at 01:03:38:

I think you are hitting at the crux of the debate here.

IF - as I believe - the two funds are separate, then although IBM is entitled to take a contribution holiday from the C Plan Fund, it is NOT entitled to move money to the M Plan. If the Actuary says that the M Plan is underfunded then IBM needs to top it up. These are 2 unrelated money movements and in this IBM appears to be wrong - but I suspect that it was done this way to improve the look of IBM profits in the current years.

However, since IBM IS entitled to take a contribution holiday from the C Plan Fund (even though the method in this case was wrong), then the fund can reduce till it gives Retirees what we have always been promised from this plan. - i.e. a pension based on final salary and service years. Any increases have always been discretionary - (i.e. based on IBMs 'generosity') - and there is nothing that can be done to change this.