Posted by Ron Bowater on 17 March 2001 at 12:04:52:
For people like myself who are members of the C plan and who will probably carry on working for IBM for a few more years, there is still the option (I believe) of transferring to the M plan. This appears to offer the advantages that IBM continues to fund M plan pensions (to the tune of 8% p.a.) and a slightly reduced employee contribution (which could be diverted into AVCs). However, I have heard it said that no-one in their right mind would give up a final salary scheme (like the C plan) especially in these days of falling annuity rates (which can, of course, be avoided by the use of an income drawdown scheme).
Can anyone offer any advice on this ? Has anyone done a thorough analysis on the pros and cons of converting to the M plan ? What should one do before making this BIG decision ?
Tell me if this is not the right forum for discussing this sort of thing.