IBM Updates Benefits Program for IBMers and Retirees

IBM Upgrade Benefits Program for IBMers and Retirees

September 14, 2022

Today, we’re announcing a series of updates IBM is making to optimize benefits for current and former employees. The updates are intended to streamline the plan’s offerings and administration, while providing enhanced options for as many active and retired IBM users as possible.

Medical benefits and 401(k) enhancements for active IBMers in the US

IBM is making a significant investment in its medical benefit offerings and will enhance and simplify its US medical plan. In 2023, IBM will offer three new medical plan options with enhanced and simplified plan provisions. Most IBM employees will see no change or reduction in the amount paid monthly for health care premiums.

In addition to the company’s robust 401(k) and financial planning services, IBM will also move to offering 401(k) contributions (automatic matching contributions) per pay period (instead of annually), allowing IBM employees invest both their contributions as IBM Match and automatic contributions throughout the year.

IBM Retiree Medical Plan Transition for Medicare Eligible Participants

Reinforcing IBM’s commitment to retiree health care and wellness, coverage under IBM’s retiree health plan for Medicare-eligible participants will transition to a new Group Medicare Advantage program sponsored by IBM and administered by UnitedHealthcare, effective from January 1, 2023.

The new program will offer a better and simpler overall approach with two new plan options designed specifically for IBM, including a zero premium option. Participants don’t need to worry about networks and will have access to any Medicare provider that accepts the plan, as well as extensive drug coverage. More than 99.9% of UnitedHealthcare Group Medicare Advantage members continue to have access to the providers they chose. Participants will receive valuable benefits and features not currently offered through individual plans, as well as a new level of overall health coordination and support.

IBM Personal Pension Plan acquires two group annuity contracts

For some IBM Personal Pension Plan participants and beneficiaries who began receiving benefits before January 1, 2016, IBM transferred the obligation to pay benefits to Prudential and MetLife. Beginning January 1, 2023, Prudential, as the primary administrator, will begin making ongoing pension payments to included participants and beneficiaries, and more importantly, benefit amounts, benefit payment dates, and benefits. bank agreements will not change.

The decision to purchase group annuity contracts, where insurance companies provide guaranteed payments to individuals covered by the contracts, was made with careful review and consideration. Prudential and MetLife were selected by an independent trustee retained by the Plan. Under federal law, the independent fiduciary must act solely in the interest of plan participants and beneficiaries. Prudential and MetLife are well-established, highly rated organizations with a strong track record of successfully delivering and protecting pension benefits.

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