Posted by A C Planner on 15 December 2000 at 18:49:07:
In Reply to: Re: E PLAN Members - PLEASE MAKE CONTACT posted by Anne Uther on 15 December 2000 at 12:49:42:
But that is the whole purpose of the current policy to make non-pensionable remuneration at least 10 percent of total remuneration.
The effect of this is to make the C plan less attractive than it was such that the pension accual rates are similar between the N/C plans. The C plan has a higher percentage accrual rate but on a lower base.
The benefit to IBM is of course they pocket the employees' 4% contribution - not directly of course, but though the extension to the company's pension contribution holiday that these "unnecessary" payments create.