LP profile · Pension fund
IBM Personal Pension Plan
IBM Personal Pension Plan is a pension fund headquartered in United States (North America). Ranked #53 in the 2026 Dealroom Power Law LP Ranking by realised power-law score across its venture commitments.
Historical Background
- The IBM Personal Pension Plan is a defined-benefit pension plan for eligible US-based IBM employees hired before January 1, 2005.
- The plan was originally established as a tax-qualified and a non-tax-qualified plan.
Source of Capital
- The plan's capital is derived from contributions made by IBM to fund the pension obligations for its employees and retirees.
- As of early 2024, the plan was reported to have a surplus of several billion dollars.
Major Events
- In 2008, IBM froze the pension plan, meaning employees would no longer accrue future benefits.
- In 2023, the plan's obligations for certain beneficiaries were transferred to Prudential and MetLife through the purchase of group annuity contracts.
- In a significant reversal, IBM announced in early 2024 that it would unfreeze the pension plan and once again contribute to it for its US employees, replacing its 401(k) matching program.
Allocation Strategy
- No information available.
Sources
- https://www.sec.gov/Archives/edgar/data/51143/000104746915001106/R27.htm
- https://www.nytimes.com/2024/02/09/business/ibm-pension-plan.html
- https://newsroom.ibm.com/IBM-Updates-Benefits-Program-for-IBMers-and-Retirees
- https://www.milliman.com/en/insight/ibm-saves-billions-by-reopening-pension-plan
- https://www.discerningreaders.com/history-of-ibm-leading-edge-employee-benefit-firsts.html