XPS Administration - IBM Pension Trust

Your IBM Retirement Options

Updated on 26 May 2021

We’re here to help – from telling you your current pension value to explaining your options at retirement in more detail.

You have built up your savings over many years and now it’s time to choose how to enjoy your benefits.

Your choices:

  • Take a full pension
  • Take a reduced pension plus tax-free cash
  • Transfer your pension benefits to another provider for more choices

Take a full pension

You can take the whole of your IBM Plan as a pension.

Take a reduced pension plus tax- free cash  

You can take tax-free cash of up to 25% of the capital value of your IBM pension benefits with a reduced pension. If you have an ASC/AVC fund, you can take the cash out of here first.

Transfer your pension benefits to another provider

When you transfer to another provider, you have more choice as to what you can do with your pension benefits. The choice includes taking flexible income (also known as ‘flexi-access drawdown’). With this option, you leave your pension benefits invested and take cash sums out whenever you wish. 25% of each sum is usually tax free and the rest is taxable.

The basis of the CETV calculation is reviewed and agreed by the Trustee in line with actuarial guidance and legislation.  A copy of the method and assumption used in calculating CETVs can be found here.

If you were a member of:

  • C, N or DSL plans - You can either transfer out all of your pension benefits together, or transfer out your defined benefit and money purchase funds separately.
  • I Plan - The I Plan and M Plan benefits are treated separately so can be transferred independently of each other.

Any ASC/AVC fund you have can be transferred out independently.

The Trustee has a duty to ensure that transfers are made in accordance with the relevant legislation and regulatory requirements.  For the purpose of meeting this duty the Trustee has implemented a due diligence process which is designed to verify whether the necessary requirements have been met for the receiving scheme to be a valid destination for the Cash Equivalent Transfer Value (CETV).  

You need to be wary of transferring to schemes offering you loans, cash incentives or access to your funds before age 55 (except in cases of ill-heath). These may constitute unauthorised payments and give rise to significant tax charges as a result. You can learn more about pension scams and liberation here.

You can read more about the new flexibility under 'Pension Freedoms'.

 

 

Please note that the value of the benefit paid from any ASC/AVC fund will depend on several factors including the amount of contributions you've paid, any cost of exercising any right to transfer the benefits, any charges payable, the age at which you access your benefit,the performance of investments and any cost of converting your benefit into an annuity.

We're here to help,
contact us when…

  • You have agreed your retirement with your line manager
  • You are considering accessing your retirement options
CONTACT US

Updated on 26 May 2021