XPS Administration - IBM Pension Trust

Your Contribution Options

Updated on 26 May 2021

The more you pay into your Retirement Account, the more you’ll have when you retire. You must pay basic contributions (3% of your salary), but you also have two ways to pay in more.

  • You pay in 3% of your salary.

  • You don’t pay tax on your contributions, and your National Insurance contributions are reduced through Smart*.

  • IBM pays a percentage of your pensionable salary (dependent on your age, see your benefit statement for more details) into your M Plan Retirement Account. 

  • Employer contributions in respect of your DB Plan membership are not set amounts and are usually reviewed after each triennial valuation.  The latest contributions are set out in the Report and Accounts which can be found in the Documents and Publications section of the website.
  • You have two ways to pay in more – Additional Smart* Contributions and Additional Voluntary Contributions.

Your basic contributions

As a member of the Enhanced M Plan, you build up your pension savings in your individual Retirement Account. This is in addition to the pension you accrued whilst in your DB plan.

You pay into your pension by making Smart* contributions. As part of your Smart* contributions, you elect to reduce your pre You* salary by 3%, IBM then puts this into your Retirement Account.

You don’t pay tax on your contributions and you also see a reduction in how much National Insurance you pay, as your gross salary is reduced by the amount of your Smart* contribution.

IBM pays a percentage of your pensionable salary into your Retirement Account.  The actual percentage is age dependent; please refer to your benefit statement for more details.

Ways to pay in more

You can choose to pay:

  • Additional Smart* Contributions (ASCs) – During the quarterly You* benefit elections, you can elect to reduce your salary further and receive an uplift from IBM of 6%. Example : for every £100 that you elect, IBM will invest an additional £6 (6%) equating to a further £106 into your Retirement Account

  • Additional Voluntary Contributions (AVCs) – You can pay AVCs either as a percentage of your salary, a fixed monthly amount, or a one-time payment. AVCs are taken directly from your salary. 


    When you wish to Change/Start/Stop an AVC election, you will be required to fill out an AVC election form. The link to the form is here.


    You will need to scroll down to the section entitled:  "How do you elect to start additional contributions & what investment options are available". From there you will find the form in the "M Plan members (including Enhanced and Hybrid M Plans)" section with further instructions.

How your contribution options compare

Basic contributions
Income Tax relief?
Yes Yes Yes
National Insurance relief?
Yes Yes No
6% uplift by IBM? No Yes No
Variable monthly amounts? No Yes Yes
Start, stop or change at any time? No No Yes


For more details on the Enhanced M Plan, please view the Enhanced M Plan factsheet.

Updated on 26 May 2021