UK - Workers union Amicus said it would do everything in its power "to retain decent pension provision" for IBM UK employees, and accused the technology giant of closing its final salary pension scheme by the back door.
Peter Skyte, Amicus national officer for IT, said IBM was a “highly profitable company” and said pension changes would cause a chain reaction leading to a meltdown in final salary provision for its employees. The IBM Chief Executive stands to receive an annual pension higher than [England football coach] Sven Goran Eriksson’s annual salary and Amicus will be doing everything in its power to retain decent pension provision for IBM employees in the UK, he said.
Skyte made the statement after IBM proposed changes to its UK pension arrangements, which included a reduction in the rate of growth of pensionable earnings for current employees who choose to remain in its DB plan and allowing current employees to transfer to a defined contribution scheme.
The reforms also included a £500m cash injection.
Amicus has accused IBM of exerting financial pressure on employees to join a money purchase scheme, while calculations by the union suggested employees could lose anything between 10 and 40% depending on salary, age and present and future service.
“Someone on £30,000 with 20 years to retirement could have their pension value slashed by nearly a quarter, the equivalent of over two years salary,” the union said in a release.
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