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The
Directors
IBM
UK Pensions Trust Ltd
PO
Box 41
North
Harbour
Portsmouth
PO6
3AU
Replacing the "Opt-out"
Dear Director,
I write as chairman of the Association of Members
of IBM UK Pensions Plans (AMIPP, www.amipp.org.uk) to express disappointment that AMIPP has not been consulted about the
arrangements needed to create MNDs and at the delay between when it was known
that the Trust would need to make arrangements and the time when it has decided
to consult.
The Regulator has provided a list of factors which
Trusts should take into account when considering if an organisation is
representative. Here is a comparison
between AMIPP and the Hursley Retirees Club.
Whether the organisation has
representation as one of its purposes:
AMIPP has representation as one of its
purposes. It has recommended how voters
should rank candidates in the 2002 and 2005 MED elections, in accordance with
its objective of "Playing
the fullest part possible in restoring the members' trust and confidence in the
intentions of IBM UK and the Trust board".
The Hursley Club does not have representation as
one of its purposes. "The objectives of
the Club shall be to organise recreational, cultural and social activities for
retirees of IBM United Kingdom Group of Companies." In
practice this predominantly means organising coach trips.
Whom the organisation
represents and the proportion of the active or pensioner members which it
covers:
All scheme members can register with AMIPP. In practice about 2500 have, from all
categories of membership.
The Hursley Club caters for those who retire from
Hursley. The number of members is less
than half the number of people registered with AMIPP. The maximum participation for any coach trip in 2006 was 204.
Whether the organisation has
any limitations on membership:
AMIPP does not have limitations on
membership. The Hursley Club is
restricted to retirees and has a further restriction for those who retire from
deferment.
The relationship of the
organisation with the employer (i.e. how independent the organisation is of the
employer):
AMIPP is a modern Internet organisation
with low costs - what expenses it has are covered by donations from
members. It is entirely independent of
IBM. Seventy percent of the money
coming into the Hursley Club in 2006 came from the IBM UK subsidy. IBM controls the Hursley Club through two
trustees who are IBM appointed.
Whether individual members will
also be involved in the nomination process, or representative organisations
alone:
AMIPP and the Hursley Club are equal in
this respect. It is expected that
individual members will be involved in the MND nomination process.
Whether the organisation is
the only organisation that the trustees intend to involve:
AMIPP and the Hursley Club are equal in
this respect. Other organisations will
be involved.
The Retirees Club is an excellent
organisation throughout its sections.
They bring pleasure to many people.
But the credentials of AMIPP in MND considerations are far higher. The Trust's decision to consult the Hursley
Club about MNDs, but not AMIPP, raises questions about the purpose of their
consultation.
Yours
sincerely,
Brian Marks