Expectations

Posted by Brian Marks on 07 October 2001 at 18:46:49:

In Reply to: Seems stingey, but what could one have expected? posted by Deferred and Worried on 06 October 2001 at 12:54:43:

IBM and the Trust are agreed on a 1.2% increase that is now payable, from 6th October 2001. Within a small fraction of a percent this matches the rule we have had described to us before. The rule says go back three months for the corresponding period of change in the RPI and erode the value of our pensions by 30% of that RPI change. (RPI at July 2001 was 173.3, at July 2000 it was 170.5)

We cannot compare the increase with other companies yet, because year 2001 figures for other companies are not yet published. Over the Nineties decade, retirees in our position kept the value of their pensions the same, on average.

This is the second consecutive increase that has been at an interval of a year. That is not enough to draw conclusions, but maybe IBM and the Trust want their behaviour to be seen as more in line with the 99% of companies which review on an annual basis.

../thetrust/trustview1.htmlhas more on the history of IBM increases and how they are calculated.

../docs/ddecline3.html has comparisons with other companies.

Personally, this pension erosion is as I would now expect from New IBM, reinforcing its position as the worst of all comparable companies for pensions in payment. It is not what I was led to expect from "good old IBM", prior to retirement.