Re: C to M plan conversion

Posted by Boyd Johnston on 15 September 2001 at 19:54:22:

In Reply to: Re: C to M plan conversion posted by Bryan Williams on 13 September 2001 at 09:17:38:

: : : Has anyone any information on whether such a move is a good thing or not?
: : : I have about 19 years until I retire....

: : This is only an opinion & not based on any knowledge of
: : pensions calculations. I would not make the move, based
: : on the simple premise that IBM Mgnt moved to "Money Purchase"
: : to save the IBM company money, not for the advantage of it's
: : personnel.
: :

: Thanks for the post, but surely the fact that in the M plan
: you only contribute 3% (instead of 4%) and that the pension is protected
: against inflation (RPI or 5%) has some effect?
: I'd guess that a point against the M plan is the uncertainty as to what your final
: fund is going to be....
: Also in the last 3 years the transfers from C to M have gone up (2m,9.2m,12.1m).
Bryan,
The figures you quote are the amounts of money being moved by IBM from 'C' Plan 'surplus to pay the company's contributions to the 'M' Plan. This is growing as the number of 'M' Plan members grows. It does not represent the number of 'C' Plan members converting to 'M' Plan.
I think Archie's point holds, and anybody in a money purchase scheme will be hurting right now with the way stock market has fallen in recent weeks.