As a member of the Enhanced M Plan, you build up your pension savings in your individual Retirement Account. This is in addition to the pension you accrued whilst in your DB plan.
You pay into your pension by making Smart* contributions. As part of your Smart* contributions, you elect to reduce your pre You* salary by 3%, IBM then puts this into your Retirement Account.
You don’t pay tax on your contributions and you also see a reduction in how much National Insurance you pay, as your gross salary is reduced by the amount of your Smart* contribution.
IBM pays a percentage of your pensionable salary into your Retirement Account. The actual percentage is age dependent; please refer to your benefit statement for more details.