In Reply to: C Plan change concerns from a current employee posted by Maddog on 11 November 2004 at 12:13:33:
Welcome Maddog, great to see you've converted from lurking to posting.
People like me will only post an opinion. I'm not "right" and nor are you - we just hold different opinions.
If you wanted certainty of contribtution level then a defined contribtuion scheme is ideal. Most companies are offering those and they'll never be any contetnion with the sponsoring employer - except the employer contribtuion. Everything else will be in your hands and in the hands of the market. I think that you have the opportunity to be in a defined benefits programme makes you lucky and whilst I genuinely understand the angst re the increased contribtuion - particularly against the background of the way past surpluses have been used, I think that on balance it's a great deal. You have a degree of certainty in return for a small uncertainty re contributions, and having IBM share the future extra longevity cost with you rather than you take it all - as you would in definded contribution is a great arrangement. I can argue against what I say ie "But I was promised ......." but let's be pragmatic and sensible.