XPS Administration - IBM Pension Trust

Your Pension Payments

Updated on 28 September 2021

You will only receive a payslip at the end or start of each tax year if your net monthly amount changes by more than £5, your tax code changes or if you change your bank or building society account.

Your pension is paid as a regular, taxable income. If you bought a pension with an annuity provider, the information on this page does not apply to you. Contact your pension provider directly for details.

  • Your pension is paid on the sixth day of each month, if this falls at a weekend or on a bank holiday, your pension will be paid on the next working day

  • It must be paid into an account in or including your name

  • It can be paid into an overseas account in local currency

  • We deduct the tax instructed by HMRC before payment

If you bought a pension with an annuity provider, the following information does not apply to you. Contact your pension provider directly for details.

When your pension is paid

Your pension is paid to you monthly in advance. It is paid on the sixth day of each month. If this falls at a weekend or on a bank holiday, your pension will be paid on the next working day.

These are your payment dates for 2021

Month Payment date
January Wednesday 6th
February Monday 8th
March Monday 8th
April Tuesday 6th
May Thursday 6th
June Monday 7th
July Tuesday 6th
August Friday 6th
September Monday 6th
October Wednesday 6th
November Monday 8th
December Monday 6th

Where your pension is paid

Your pension is paid directly into your bank or building society account. The account must be in your name or include your name, in the case of a joint account.

You can have your pension paid into an overseas account in the local currency if you are living or plan to live abroad. We can set this up for you via Citibank’s World Link Payment Service at a cost of £2 per transaction.

To set up World Link payments, you will need to complete a mandate that depends on the country in which the payments will be made. You can download a mandate from ‘Documents & Publications’.

To reduce instances of IBM not being informed of the death of a retiree member abroad, members who live abroad will be asked to verify their eligibility to still receive their pension. This exercise is carried out every two years.

How your pension is taxed

You pay income tax on your pension. Your pension will have income tax deducted on an emergency tax code when it is first set up. Once HM Revenue & Customs confirm your tax code to us, we will use this for future pension payments. HM Revenue & Customs supply tax codes directly to us so you do not need to notify us if your tax code changes. If you have any questions about your tax code, contact HM Revenue & Customs.

Your pension payslips

You will only receive a printed payslip:

  • At the start or end of each tax year
  • If your net monthly amount changes by more than £1
  • If your tax code changes
  • If you change your bank or building society account

Download our Information for Retirees handbook for more information.

Log into MyPension to view payslips and other information.

Updated on 26 May 2021