The Conditional Improvements to M Plan
From Ibmukpensions
G11 . What is being proposed for the Defined Contribution (M Plan)?
A. All members of the Defined Contribution plan, including existing defined benefit members who transfer in to the M Plan, will have the opportunity to increase their contributions by a further 1% or 2% and receive an additional matching contribution from the Company. This means that employees can either continue with their existing 3% employee / 8% IBM contributions or increase their contributions which IBM will match as per the following table:
- Options......................Employee Contribution.....IBM Contribution
- Existing Arrangement..3%...................................8%
- Additional 1% match...4%...................................9%
- Additional 2% match...5%...................................10%
The company contribution rates for enhanced M Plan members, agreed in 2006, will not be affected by these proposals.
G12. If the proposals for the Defined Benefit pension plans are not implemented does this impact the proposed increase in the M Plan contribution rates? A. Yes. We need to achieve sustainable progress against our productivity objective to enable us to improve M Plan contribution rates for all Defined Contribution members. Therefore, if our proposals for the Defined Benefit pension plans are not implemented as planned we will not be in a position to increase the M Plan contribution rates.
