Posted by A N Other employee on 07 December 2000 at 17:18:59:
I have been perusing through the IBM Pensions handbook and have
extracted an number of quotes from that handbook and associated
members reports that I still have. I thought they might be of
interest to some of my C Planner colleagues:
1997 Members Report - page 4
"Defined Contribution Plans - During the year, Company Contributions
of £2.7m have been funded from the surplus of the Defined
Benefit Plans."
1998 Members Report - page 4
"Defined Contribution Plans - During the year, Company Contributions
of £9.2m have been funded from the surplus of the Defined
Benefits Plans."
IBM Pension matters TWO dated January 1991
I would refer people to the inside section of this document
entitled The Pressures of Inflation.
I am unfortunately not able to scan in this entire document but
would recommend that this should be done if anyone has that
capability.
There are some interesting sub headings:
WHY CAN'T PENSION PAYMENTS BE INDEXED LINKED?
WHAT ABOUT CURRENT LEGISLATION?
WHAT CAN SOME PENSION FUNDS PAY FOR INFLATION INCREASES?
WHAY CAN'T THE IBM PENSION FUND DO THE SAME?
WHAT COMFORT IS THERE FOR CURRENT AND FUTURE PENSIONERS?
WHAT ACTION CAN YOU TAKE?
From the main IBM Pensions Book I refer to the Introduction
section Page 11 issued in Januaray 1993
Under Guaranteed Minimum Pension (GMP) it states:
In the past the practice was for this to be increased annually
in line with the Retail Price Index. The cost of increase being
borne by the State.
As from 6th April 1988 the process was changed as follows:
- pre 6th April 1988 leavers will have the whole of the GMP
increased by the State.
- for leavers on or after 6th April 1988, the portion of the
GMP and the spouse's GMP, relating to post 6th April 1988
IBM Service whilst a member, mjust be increased by IBM up to a
maximum of 3% per annum, The State is responsible for increases
over this amount and also for the pre-Arpil 1988 portion.
QUESTION: do we know if IBM does do this??
From the Main Plan - C section, I refer to page 10 dated
April 1994.
QUOTE
Final 12 month' pensionable earnings
On or before 5th August 1993
Your Pensionable Earnings during your last 12 months prior to
your leaving the service of IBM
On or after 6th August 1993
The best consectutive 12 months Pensionable Earnings in the
5 years prior to you leaving the service of IBM.
I thought these last two might be of use to the message from
A Palmer some time ago.