Looking back at the 2006 decision re. Enhanced M Plan

From Ibmukpensions

[edit] Background

I joined the C Plan in 1997 just before it's closure so in 2006 naturally opted to stay in.....

I feel completely discriminated against..... while I struggle to contain my anger at my C-Plan being frozen I am furious that I do not have the option to switch on to the Enhanced M-Plan like so many (longer serving) C Planners were able to do in 2006 and who are protected from all this.

Surely this is grounds for hard bargaining/legal position as at the minimum the trustee has been seen to have been acting in 'bad faith' in 2006 ?

Pragmatically I can not see IBM reversing the decison to freeze the DB scheme but I really want the consultation team to focus on allowing us to switch on to Enhanced M-Plan.

From the Q & A:

G13. When IBM made changes in 2006 the defined benefit members were offered an opportunity to transfer to the M Plan with enhanced company contribution rates. Under the current proposals will IBM offer similar enhanced rates to DB plan members who did not transfer in 2006?

A. No, all employees joining the M Plan will be offered the standard M plan contribution rates in line with other employees. Employees who elected to join the M plan in 2006 were provided with a one-off opportunity to join the M Plan on enhanced terms.

[edit] Why are those who stayed with their DB plan being discriminated against, relative to those on Enhanced M Plan?

The point at issue here is whether the statements Made by David Heath in 2006 about the sustainability of the DB Plans being secured to 2014 constitute mis-selling to those employees who elected to stay in the DB plans, and whether as a result of that potential mis-selling, DB plan members should be offered the same terms for transfer to the M-Plan now, as they may have suffered material financial detriment as a result of decisions based on those statements.