UK - A potential landmark case on pension surplus distribution - which is currently before the ombudsman - has moved a step closer to completion.
The case has been brought against computer giant IBM and the trustees of its £4.3bn pension plan by a former manager who claims that IBM pensioners were due annual rises greater than that of 70% of the Retail Price Index.
The rises were awarded at a time when the company was enjoying a large surplus and regular contribution holidays.
The case was originally submitted to the ombudsman's office in September 2000, but a special legal adviser appointed was only appointed last month.
The former manager says he is delighted that this move has been taken.But he said: “I am frustrated that it will be three years in August since I started this action. I regard it as a simple issue. Presumably the ombudsman wants to see whether any laws have been transgressed and this has got lawyers involved which has taken time.
“I don’t believe laws have been broken. But I don’t believe the trustees or the company have acted reasonably either in the circumstances they found themselves in.”
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