IBM Pension Scheme

Part of the debate – in Westminster Hall at 5:01 pm on 13 January 2010.

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Photo of Angela Eagle Angela Eagle The Minister of State, Department for Work and Pensions, Member, Labour Party National Executive Committee 5:01, 13 January 2010

It is not unusual for companies to retain significant discretion over early retirement, both for cost and manpower planning purposes. We have seen that phenomenon for many years.

I hope that the hon. Gentleman does not think that I am condoning what IBM is doing. I am making a general observation in this area. It is often more of a company human resources issue than a pension scheme issue. If he wants to give me details that he thinks make his case, I will be happy to look at whether there are public policy implications, but it is important to realise that there has to be some flexibility, and that not all flexibility is written into the rules of pension schemes. Quite often, it is available as long as there are surpluses in the scheme that can be used for such purposes.

In the past, many employers and employees have benefited from the flexibility that that kind of procedure has offered, if downsizing happens to be the case. We must be careful not to react with understandable emotion to what has happened and end up throwing out the baby with the bath water in terms of flexibility. However, as I said, I am happy to have a look at things that the hon. Gentleman thinks impact directly on this area.