The UK pension regulator is investigating IBM following complaints that wrongly cross-subsidised its pension plans, the Times reports today.

The regulator will look into IBM's decision to subsidise its new pension plan with a whacking £700 million surplus from its original plan.

IBM's original plan members say the surplus should be used for their retirement benefit only.

If IBM loses, it will have to pay back the money with interest into the original plan. The company declined to comment, the Times says. ®