In Reply to: Re: Pensions Roadshow posted by Freddy on 17 November 2004 at 10:00:26:
I attended the Greenock roadshow yesterday.It was a full auditorium video linked to an overflow room.
David Heath was pitching with Kevin Waller to answer questions.
Only action picked up by D Heath was to review the N plan proposal with Works Council (local member John Mitchel) to poll active N planners (approx 500) to see if the majority preferred to pay something rather than take a pension cut (accrual rate cut).He said he would go with majority.They had thought to leave N plan non contributory.
N plan members of whom there are still a lot in Greenock pointed out that when choice of C plan given they were threatened by IBM to join C plan versus N plan frozen and unchangeable for ever (no increase or decrease in benefits possible).David/Kevin taken aback by this and said they would investigate.
David Heath said that IBM did not impose confidentiality on trustee meetings it was imposed by the Trustees themselves ,however he did disclose that the VOTING on the new proposals had not been unanimous.1 against,2 abstensions and he had not voted due to declaring a conflict of interest (although he could have).
How trustees could agree on behalf of their members to accept 2% more contributions for no benefit increase and no improvement from IBM in terms of openness,moving money to M plan (funds still one big pot),or guaranteed 70% SIP for future I do not understand!Surely something should be negotiated for our money.I am sure Mike O'Sullivan would have attempted to,but IBM dropped the person Greenock employees voted in.
Kevin Waller admitted on Video that IBM had dropped from top 10 PIP when C plan was sold to us as one of the best , to about bottom of 100 comparable companies.So they were trying to sell us C planners to pay 2% more for worst UK pension of our peer companies.
Kevin Waller answered that the 70% RPI increases were factored into the (Independent)Actuarial calculations for the deficit repayment ,longevity etc.
Further increases,decreases to be assesed every three years.
David Heath said not to rely on the new Pension law changes for protection but to TRUST IBM to guarantee the C plan.I asked how I would enforce the IBM guarantee once I was retired and IBM let me down and he said I couldn't,it would be up to the Trustees!
Finally as David Heath's body language was so poor,I believe the video has been censored by IBM.(Ah well shouldn't send a boy to do a man's job).Kevin Waller presented himself very capably and knew his stuff....now we know what he has been up to at HR..he is reviewing M plan next for David..lucky them!
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