Glossary
Here's our guide to some of the more technical terms you'll find on the site. Remember, if any of these words appear anywhere on the site, simply click on the term and the definition will display in a new window.
Annuity
A pension purchased from an insurance company with a Retirement Account.
Child
A natural or adopted child aged under 19 or, if over aged 19 and remaining in full time education (or vocational training approved by the Trustee), up to the age of 23.
Company
Any company within the IBM United Kingdom Holdings Group of Companies.
Contracted-in
An occupational pension plan is contracted-in to the State Second Pension (S2P) when its members and the employer pay the full, contracted-in rate of National Insurance (NI) contributions. The NI contributions entitle the member to the additional State Second Pension (previously State Earnings Related Pension (SERPS)) at State Pension Age.
Contracted-out
Dealing Days
The days on which the Trustee buys and sells units in the BlackRock Advisors (UK) Limited and Legal & General funds.
Dependant
Someone who is not a Spouse but whose relationship was such that, in the opinion of the Trustee, they may reasonably expect to receive all or part of the benefit payable on a member’s death.
Group Life Assurance Plan
A separate Trust used for the payment of Group Life Assurance in the event of an employee’s death.
Limited Price Indexation (LPI)
Normal Retirement Age (NRA)
The M Plan’s Normal Retirement Age is 63.
Normal Retirement Date (NRD)
The Normal Retirement Date for the M Plan is the fifth of the month following (or coincident with) your 63rd birthday.
Notional Pensionable Salary
The basic annual salary, or reference salary if you are paid on commission, that was payable to you immediately before the commencement of any approved temporary absence.
Pensionable Salary
Your basic annual salary, or reference salary if you are paid on commission. It does not include:
• Overtime
• Commission
• London Allowance
• Shift or Call-out payments
• Performance bonus
• Other bonuses
• Stock related payments
• All other fluctuating emoluments.
Your Pensionable Salary is the basis upon which your monthly M Plan contributions will be calculated and is subject to the Earnings Cap.
Prospective Service
The period of service from the date you join the M Plan to your Normal Retirement Date. If you transfer pension benefits from another section of the IBM Pension Plan, the period of service transferredin will also count as part of your prospective service, providing there has been no break in IBM Pension Plan membership.
Qualifying Service
The period of service that is taken into account for benefits when you leave Company service, or if you opt out of the M Plan. It comprises your service while a member of the M Plan, plus any service when you were a member of a previous plan that you have transferred-in as a result of an acquisition or merger.
Retirement Account
The accumulated value of your own contributions (including AVCs) and those credited on behalf of the Company, plus any investment income earned. The value of your Retirement Account will include the value of any pension benefit that has been transferred-in from a former pension arrangement.
Spouse
Someone that you are legally married to. In the case of separation, the Trustee has absolute discretion whether a Spouse shall be entitled to benefits.
State Second Pension (S2P)
A State earnings-related pension, paid in addition to the Basic State Pension for those years where an employee has not contracted-out of S2P or the State Earnings Related Pension Scheme (SERPS). S2P replaced SERPS on 6 April 2002.
Trust Deed and Rules
The legal document that establishes and governs the Plan and sets out how benefits are calculated and paid.
Trustee
IBM United Kingdom Pensions Trust Limited acts as the Trustee for the IBM Pension Plan. Its Board of Directors have the legal responsibility of ensuring that the Plan is administered in accordance with the Trust Deed and Rules.
Last Updated: 30/03/2011
