Posted by Robin D'Souza on 28 November 2000 at 11:32:51:
In Reply to: Letter From Jeff Rooker MP Minister of State posted by Colin Blanks on 23 November 2000 at 18:28:36:
This letter states that....
The Pensions Act 1995 requires that:
· before a payment is made to an employer from a surplus, all current and future pensions in payment must be increased annually in line
with the Retail Prices Index up to a maximum of 5 per cent, including pensions accrued in the past.
So, this argument hinges on whether the monies were removed from the Defined Benefits (C-Plan) fund BY IBM, and then paid into the
M-Plan fund to meet IBM'S obligations to that scheme. If IBM did remove the monies, - even if only in the transition to the M-Plan pot
then IBM has broken the law.
However, if the Pension Fund is a single pot that funds all schemes then this argument may not hold. Perhaps it's time we got a Lawyer!