Original URL: http://www.theregister.co.uk/2004/09/16/ibm_pensions/
IBM UK mulls pension cutbacks
The C-plan diet
Posted in CIO, 16th September 2004 08:47 GMT
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IBM is back in hot water over pensions. Investments and Pensions Europe revealed that IBM is "considering options - including wind-up of the C-plan section of its pension scheme.
The C-plan section, which closed to new joiners in 1997, is a contributory scheme which pays out on a defined benefit / final salary basis.
Comments on an IBM staff pension website pointed to "reasonably well-sourced" hints that IBM UK is looking at the future of the C-plan scheme. Scheme trustee Brian Marks, speaking personally, said these options included wind-up of the scheme. Another possibility was to force IBM employees to change their C-plan benefits into a deferred pension.
David Newman, UK pensions manager for IBM, was less impressed with the story. He told Investment and Pensions Europe: "I'm not interested in talking to you, I'm afraid." He did not reply to emails.
More on this story here [1].
IBM has had problems with its pension scheme both here and in the US. Most recently, a US court told the company to reimburse 140,000 employees and ex-employees whose benefits had been underpaid. ®
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