Re: The oxygen of Publicity

Posted by George Cuthbertson on 01 March 2001 at 15:41:26:

In Reply to: Re: The oxygen of Publicity posted by Bryan Balfour on 25 February 2001 at 12:12:47:

: : So what is that would satisfy you:
: : 1. a guarantee of 5% or RPI which ever is lower?
: : 2. a guarantee of 70% of RPI?
: : 3. some other guarantee?

: I would be satisfied with a public statement from IBM to the effect that it will continue with ex-gratia pension increases based on a minimum of 70% in the increase in RPI unless unable to do so DUE TO CIRCUMSTANCES BEYOND ITS CONTROL. This, I feel, would satisfy those who are concerned that the C plan is being bleed to the point that ex-gratia increases could no longer be paid. It won't, of course, satisfy those who somehow think that all the money in the fund belongs to them.

I would like IBM to make a formal legally-binding commitment
rather than just a public statement. My feeling is that there is
a stronger rationale supporting RPI or 5% since this is what now
applies. I am short of some data though :

Does anyone know whether the current surplus would be enough, too
much or not enough to cover this commitment? Given that the C Plan is closed it ought to be possible for an actuary to calculate. If it is too much then there is still scope for IBM to fund M Plan for some time at least and still satisfy their moral obligations. If there is not enough then our case would be weaker and would need an unlikely measure of generosity from IBM.

I think it is important to know this before deciding on what to ask IBM for - does any know the answer?