Re: C Plan capping

Posted by A Palmer on 22 December 2000 at 16:30:30:

In Reply to: Re: C Plan capping posted by A Palmer on 14 December 2000 at 16:56:37:

Dave Newman's reply to my letters essentially said.....
A) The Trustee could not make a unilateral change to the C Plan
B) The Capping formula is a matter of "plan construction"
C) My pension had been correctly calculated
I did not feel he had addressed my points so I am writing again as follows...
Dear Mr. Newman,

I was not asking for the Trustee to "unilaterally change" the C Plan. I was asking for the Trustee's position (based on its acting in the best interests of the members ) on C Plan capping in the light of the fact that the government, some while ago, relaxed the rules that were in place back in the early 80s. Those rules limited the %age allowed at various ages from 50 on. IBM had to include the cap (which applied to both C Plan and voluntary additional pension ) largely because those who joined IBM in their early twenties and took the C Plan option at the earliest opportunity would otherwise have exceeded that limit if they retired in their 50s. That is why the cap bites so strongly on just that set of people. I note that the current C Plan cap calculation is exactly as per the formula which MIL 582 states is there because of the need to meet Inland Revenue guidelines. I find that just too much of a coincidence. As it happens, I chatted to Sir Edwin during his trip to Paris to get sign off to the C Plan. Somewhere along the line his obvious care for his employees and delight in the plan has been lost by his successors. Possibly they just forgot to review the need for the cap?

So, I ask again, what is the position of the Trust directors on those points, in particular are they prepared to discuss the matter with the Company?

(written 22 Dec )