XPS Administration - IBM Pension Trust

Your Pension Increases

Updated on 26 May 2021

Your pension is reviewed in April every year. The amount of increase depends on the plan you were a member of. If you bought a pension with an annuity provider, the information on this page does not apply to you. Please contact your pension provider directly for details.

  • The amount of increase depends on the plan you were a member of

  • You will be notified in writing if your pension is increased

C and N Plan members

If you earned your pension before 6 April 1997:

  • Increases are linked to the Retail Price Index (RPI)

  • Rate of increase is 50% of increase in RPI, up to a maximum of 5%

  • Reference month is the previous January

  • Increase effective from 6 April, up until 2022; from 2022 – at the Company’s discretion

If you earned your pension between 6 April 1997 and 5 April 2005:

  • Increases are linked to the Consumer Prices Index (CPI)

  • Rate of increase is the lower of CPI or 5%

  • Reference month is the previous September

  • Increase effective from 6 April

If you earned your pension after 5 April 2005:

  • Increases are linked to CPI

  • Rate of increase is the lower of CPI or 2.5%

  • Reference month is the previous September

  • Increase effective from 6 April

DSL Plan members

If you earned your pension before 5 August 2005:

  • Increases are linked to RPI
  • Rate of increase is the lower of RPI or 5%
  • Reference month is the previous December
  • Increase effective from 1 April

If you earned your pension after 6 August 2005:

  • Increases are linked to RPI
  • Rate of increase is the lower of RPI or 2.5%
  • Reference month is the previous December
  • Increase effective from 1 April

I Plan members

  • Increases are linked to RPI (capped at 5%)
  • Rate of increase to Chemsy's pensions fixed at 5%
  • Reference month is the previous September
  • Increase effective from April each year

For members with a Guaranteed Minimum Pension (GMP)

You would have been contracted out of the State Earnings Related Scheme (SERPS) if you worked for IBM anytime between 6 April 1978 and 5 April 1997. As a result, you and IBM would have paid a lower rate of National Insurance and your pension plan has to provide the benefits that you would have otherwise received from the State.

For members who reached State Pension Age (SPA) before 6 April 2016, the increase in your GMP is based on the increase in the CPI and a number of other factors.

Download our Information for Retirees Booklet for details about pension increases.

For more information on the State Pension, please view the State Pension factsheet.

 

Pension Increase History

   

  • C and N Plan

Here is the listing of the most recent C and N Plan pension increases, based on when the pension was earned.

 
Pre April 1997 pension increases
Limited Price Indexation (LPI) increases on pension earned between 6 April 1997 and 5 April 2005
Limited Price Indexation (LPI) increases on pension earned after 5 April 2005
Date of increase
Amount of increase
Amount of increase
Amount of increase
Apr 21
0.70%
0.50%
0.50%
Apr 20
1.35%
1.70%
1.70%
Apr 19
1.27%
2.40%
2.40%
Apr 18
2.00%
3.00%
2.50%
Apr 17
1.30%
1.00%
1.00%
Apr 16
0.67%
0.00%
0.00%
Apr 15
0.55%
1.20%
1.20%
Apr 14
1.40%
2.70%
2.50%
Apr 13
1.65%
2.20%
2.20%
Apr 12
1.97%
5.00%
2.50%

   

  • I Plan

Here is the listing of the most recent I Plan pension increases.

Pension increases are awarded in April of each year and are the lower of the increase in the Retail Price Index (RPI) or 5%. The Government RPI figures that are used in the calculations are those recorded in the previous September.

 

Date of increase
Amount
Apr 21
1.10%
Apr 20
2.40%
Apr 19
3.30%
Apr 18
3.90%
Apr 17
2.00%
Apr 16
0.80%
Apr 15
2.30%
Apr 14
3.20%
Apr 13
2.60%
Apr 12
5.00%
Apr 11
4.60%

    

  • DSL Plans

Here is the listing of the most recent DSL Plans pension increases. These are based on when the pension was earned and the RPI recorded in December each year.

 

 
Pension earned on Service
     
Date of increase
Up to 5 August 2005
After 5 August 2005
Apr 21
1.20%
1.20%
Apr 20
2.20%
2.20%
Apr 19
2.70%
2.50%
Apr 18
4.10%
2.50%
Apr 17
2.50%
2.50%
Apr 16
1.20%
1.20%
Apr 15
1.60%
1.60%
Apr 14
2.70%
2.50%
Apr 13
3.10%
2.50%
Apr 12
4.80%
2.50%
Apr 11
4.80%
2.50%

Updated on 26 May 2021