Pension Plan changes
There are some changes to the pension plans that are currently being implemented that you may wish to take advantage of. The changes mainly affect members of the M Plan (including the Enhanced M Plan) but some Defined Benefit members (C, N, I and DSL Plans) with ASCs/AVCs or a money purchase transfer-in investment may also be affected.
What are the changes and who might they affect?
| Change | Affects |
| Legal & General Ethical UK Equity Index Fund now available for Main Plan investment | M Plan including Enhanced M Plan |
| Increase in the upper age limit for a recorded Target Retirement Age | All Plans |
| Change to default investment funds for new ASC/AVC investors | All Plans |
1. Legal & General Ethical UK Equity Index Fund
This fund will become available for the investment of Main Plan contributions with effect from 6 March 2009 payroll. It is a socially responsible fund that aims to capture the returns of the FTSE4Good UK Index and was previously only available for ASC/AVC investment.
If you would like to change your investment instructions to include this fund, you will need to take the following action:
Current employees
For future contributions, you will need to complete the Pensions Lotus Notes online application on or after 10 February 2009. Details of how to place this on your workstation (if you don’t have it already) can be found on this website under ASCs/AVCs; you will need to log in using your IBM intranet details.
For a change to your existing fund investment instructions, you should complete this form and return it to Pensions Services
Deferred members
You should complete this form and return it to Pensions Services
2. Increase in the upper age limit for a recorded Target Retirement Age (TRA)
It is now possible to record a TRA for any age up to 75. Current employees should be aware that continued employment with IBM after age 65 is with the agreement of the Company.
Important – if you are in a Lifestyle strategy and already switching, any change to your recorded TRA will result in a re-balance of your fund in the next month. This will bring your Retirement Account into line with the pre-defined percentages within the Lifestyle matrix but some buying and selling of units will take place.
If you would like to change your recorded TRA, you will need to take the following action:
Current employees
You should complete the Pensions Lotus Notes online application on or after 10 February 2009.
Deferred members
Please send an email or letter to your Pensions Officer and include your full name, employee serial number and the age you wish to record for your TRA.
3. Change to the default investment funds for new ASC/AVC investors
If you are a new ASC/AVC investor and fail to submit any investment instructions advising how you would like the ASCs/AVCs invested, with immediate effect, the default funds will be:
M Plan (including Enhanced M Plan) – ASCs/AVCs will be invested in the same investment strategy and funds as your Main Plan investment.
Defined Benefit members – ASCs/AVCs will be invested in the Legal & General Cash Fund
If you would like to change the investment from the default funds, you will need to take action as in 1. above.
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Last Updated: 24/06/2009
