XPS Administration - IBM Pension Trust

Your Contribution Options

Updated on 26 May 2021

As well as the defined benefit pension you are accruing, you may be able to increase your retirement income by electing to pay Additional Smart* Contributions (ASCs) and/or Additional Voluntary Contributions (AVCs).

  • You pay 5% of your salary.
  • You don’t pay tax on your contributions, and your National Insurance contributions are reduced through Smart*.

  • As a member of the I Plan, your retirement income is based on your length of service, age and pensionable earnings.

  • Employer contributions 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.

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 "I Plan" 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 No Yes
Stop, start or change at any time? No No Yes

For more details on the I Plan, please view the I Plan factsheet.

Updated on 26 May 2021