Early Retirement in 2010
Retirements between February and April 2010
If you have been made an offer early retirement with an effective date of 5 February, 5 March or 5 April 2010 and accepted; the following provides details of what you can expect to receive from Pensions Services and the timelines we are working to.
Every effort will be made to ensure pensions are paid on the 6th of the month following your retirement date. A mid-month payroll will be run if you return your forms late; more details can be found below.
Five weeks before your retirement date
Approximately five weeks before your retirement date, you will receive details of your pension figures. In view of the volume of quotations that need to be issued, your figures will not take into account your last month’s pensionable earnings as the quotation will need to be produced before your last month’s salary is paid and, therefore, recorded on your pension record.
If you have any ASCs/AVCs, the quotation will take into account the following values:
| Investment Manager | Fund Value |
| L&G or BlackRock (previously BGI) | Current recorded value with no assumption for any future contributions |
| Equitable Life or Friends Provident | Value used for your quotation produced in November/December |
Enclosed with the quotation will be all the documentation that needs to be completed and returned in order for Pensions Services to set up your pension. Completion of all documentation is mandatory and will include:
- Option Election form - for you to indicate the pension/cash options that you require
- Benefit Information form - this is used to ensure that your IBM pension benefits plus any benefits already in payment, or due to come into payment, do not exceed HMRC's Standard Lifetime Allowance
- Beneficiary Nomination form - to indicate to the Trustee who you would like any Life Assurance After Retirement and Five Year Guarantee payments to be paid to
- Bank Details form - to indicate the account you require your pension to be paid into
- IBM Club form - to indicate any IBM Club membership you require.
Timeline for returning documentation and payment of your pension
Listed below are the cut-off dates for processing your documentation and the date your first pension payment (including any cash) will be in your bank account. if you miss the main payroll cut-off, your pension will be paid on the dates in the last column, providing your documentation is received and completed correctly by the mid-month cut-off date:
| Retirement date | Main cut-off date | Pension paid | Mid-month cut-off |
Pension paid |
| 05/02/2010 | 25/01/10 | 08/02/10 | 08/02/10 | 17/02/10 |
| 05/03/2010 | 18/02/10 | 08/03/10 | 05/03/10 | 17/03/10 |
| 05/04/2010 | 18/03/10 | 06/04/10 | 08/04/10 | 19/04/10 |
ASCs and AVCs
The final fund values of any ASC/AVC fund will not be known at the point of setting up your pension.
ASC/AVC fund to provide tax-free cash
If you have requested your ASC/AVC fund be used to provide your tax-free cash, payment will usually be made the month after retirement once the final fund value(s), from all providers, is known.
ASC/AVC fund to provide additional pension
If your ASC/AVC fund is being used to provide additional pension, this will again generally be received and converted to pension the month after retiring.
You should not expect to receive any payment from your ASCs/AVCs at the point of retirement.
If you have any questions about your retirement, you should contact your Pensions Officer.
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Last Updated: 09/04/2010
