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IBM Pension and IEBAC site

The purpose of this website is to provide functionality that the IBM Pension Forum at http://clubs.yahoo.com/clubs/ibmpension does not provide. The main features that this website has is the ability to retain a list of useful links, archive files and frequently asked questions.


If you have any suggestions, additions, corrections, etc. for this site, contact me via the link to the left.

"Nothing endures but change." -Heraclitus

Frequently Asked Questions
Q: How do I become a member of this forum?
A: When you first go to http://clubs.yahoo.com/clubs/ibmpension, you will see a sentence in the upper right hand corner of your browser window that says "Click here to log in." Click on the word "here" which will bring you to the log in screen. If you have never registered with Yahoo, click on the hotlink "Sign me up!" Fill in all the fields and submit your registration. An email will be sent to the email address you entered on the registration form. Follow the instructions on the email to complete your registration. After that, you can log in as a member to this forum. If you have problems, send feedback to Yahoo at http://add.yahoo.com/fast/help/mb/cgi_feedback. In addition to the main Pension board, there are several local Pension boards maintained primarily by IEBAC members. For a listing of these boards, please go to http://ibmpension-rochester.8m.com and select the "Links" item on the bottom directory.

Q: Why are people so angry?
A: Employees are going to lose a significant percentage of their projected pension at retirement under the new plan compared to the old plan. Employees within 5 years of retirement can choose to stay with the old plan, but everybody else will transition to the new plan on July 1, 1999. New hires and people with approximately 5 to 10 years of service will actually benefit because their accrued pension will actually be higher during that time than under the old plan. There are provisions in the new plan to give higher rates of accrual to some mid-career employees, but these don't seem to make up for the difference in the projected pension between the old and new plan. Many people, especially those who are close to the 5 year retirement cutoff for choice of plan, are hurt by the new plan and feel that they don't have enough time before retirement to make up the difference and avoid financial difficulty when they retire. People were also transferred to AT&T without choice and some are not offered the benefits of the old or new pension plan.

Q: Why aren't all existing IBM employees allowed to choose between the old and new pension plan?
A: The official explanation from IBM Human Resources is "The IBM Retirement Plan encourages employees to leave the business after reaching earliest retirement eligibility. This type of plan no longer supports our business strategy since we need to attract and retain high performing employees to remain competitive in our marketplace. IBM is offering a choice to employees within 5 years of retirement eligibility because we recognize that these employees may not have sufficient time to adjust their financial planning and may not have been able to participate in the 401(k) plan for their entire career. IBM did not implement TDSP until 1983 and its current 3% match did not start until 1995." One of the side effects of this strategy is that people who could have retired in their 50s will now have to delay their retirement for a couple of years to acquire the same projected pension accumulation. The retirement health benefits also have been changed so that it does not benefit those who planned to retire in their 50s either.

Q: How do I find out how much pension I would have at retirement under the old plan?
A: If you are one of the people who are eligible to choose to stay with the old plan, you can use the ESTIMATR tool. Directions are described at the IBM intranet website http://w3-2.ibm.com/hr/pension1/retestimatr.shtml. Otherwise, you have to go through IBM Human Resources. Phone numbers: Pension Services 1-800-796-9876 (Tie Line 352-9876, TDD/TTY 1-800-426-6537) or via IBM Lotus Notes to PENSION/RALEIGH/IBM. Include you employee ID number and ask for the "Statement of Accrued Vested Benefit." If you get a negative response, ask that the request be forwarded to the "Plan Administrator." The formulas are available for the old retirement plan at the IBM intranet website http://w3.enterlib.ibm.com:80/cgi-bin/bookmgr/BOOKS/USHR113 if you wish to calculate it yourself. Also, the IBM Capital Accumulation Planner 2.1 is available in the file archive of this site. It does not match the outputs of the VM ESTIMATR exactly, but it should give you a good approximation of what the VM ESTIMATR would output. If you need a quick and rough estimate, the calculator tool at the website http://www.smartmoney.com/smt/consumer/index.cfm?story=19990614 is useful.

Q: How do I find out how much pension I would have at retirement under the new plan?
A: Through the Money@Work Calculator Tool at the IBM intranet website http://w3-2.ibm.com/hr/pension1/pppcalctool.shtml. However, the tool is based on the assumption that you will get 10% variable pay and 7% return on your balance every year. Keep these in mind when you compare with output from ESTIMATR. You should get you password via IBM Lotus Notes in the month of June, 1999. If you have problems with the tool or password, contact IBM Pension Services at 1-800-796-9876.

Q: How do I find out approximately how many years extra I have to work to accumulate the same amount of pension I would have had if I had retired in my 50s under the old pension plan?
A: Acquire the pension amounts you would have at retirement under the old plan. With the results should be a monthly amount payable now. At http://www.bhln.com/spia/spiaEZQuote.ASP, use the monthly amount as the periodic amount and select monthly. It returns your investment amount based on their mortality table. Go to the Money@Work Calculator Tool at the IBM intranet website http://w3-2.ibm.com/hr/pension1/pppcalctool.shtml and type in ages until your PPA is equal or closest to the investment amount. The approximate number of years extra you have to work is the difference between the age you found in the previous sentence and your current age.

Q: What internal IBM channels can I use to voice a complaint?
A: The Internal Appeals process and Executive Interview Program at the IBM intranet website http://w3-2.ibm.com/hr/hrinfo/emprel.nsf?OpenDatabase or call the Human Resources Service Center at 1-800-796-9876 (t/l 352). You can also submit IBM stockholder proposals via registered, certified or express mail to: Office of the Secretary, International Business Machines Corporation, New Orchard Road, Armonk, NY 10504.

Q: Where are the summaries of suggested actions that activists are making and other related information?
A: There are MANY suggestions and events being pursued by IEBAC. You can find these at http://www.cashpensions.com/