Posted by Alan Palmer on 18 January 2001 at 19:18:42:
In Reply to: N Plan Plus C Plan better combination???? posted by Alan Palmer on 17 January 2001 at 13:03:29:
Unfortunately I too got my maths wrong and felt obliged to send the following change. None the less because the C Plan max calculation is as far as I am aware far more cutting than the N plan one (If any) and C Plan max can cut pre-age calculation aoujnts by up to 22%, some commbinations of N and C will be better. I good example is for somebody who was 25ish when the C plan came out and who joined the C Plan on the first Jan after it started. Suych cases spanb several years up to higher ages, but I've failed to do an exact calculation!!!! The IBM MILs undoubtely could have mislead some people.
CORRECTION FOLLOWS:-
On the second page please delete from "But we would...." To the end of the paragraph. Substitute "There are many joining age/ leaving age scenarios where not "all prior N Plan contributions" actually count towards the final pension. Some pensions, including my own I think, would be higher if the C Plan had been joined at the January after it started rather than right at the beginning.
I apologise for having to make this correction as it is not my intent to waste people's time. I hope this arrives before you have had chance to review the letter and that therefore not too much time is lost.