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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: art slott who wrote (5104)	5/3/1999 11:43:00 AM
From: TigerPaw	Read Replies (1) \| Respond to of 8218

Benefits, The e-mail from IBM is not very informative as to the terms. How Benefits Are Changing IBM is shifting its focus away from the traditional concept of retirement and toward the idea of cash accumulation throughout your career. You will now have accounts for both your pension and future health care benefits, making it easier for you to track their value and plan for your future. Briefly, here's how the accounts work. The IBM Retirement Plan Becomes The Personal Pension Account Your current retirement benefit becomes your opening balance, shown as a lump sum in today's dollars. Then, your account builds steadily throughout your career, with IBM contributions. There are no age and service formulas -- simply a steady accumulation of money that is yours when you leave IBM. You will receive periodic statements, just as you do with your TDSP 401(k) account, that show you how your account is growing. When you decide to leave IBM, at any age and at any point in your career, you can take your entire vested benefit with you or leave it here and let it continue to earn interest. The IBM Retiree Medical Plan Becomes The Future Health Account While your Personal Pension Account will help you build wealth for your future, your Future Health Account will help you pay for a specific expense -- the cost of post-career IBM health coverage. When you reach age 40 with one year of service, IBM sets up a tax-free account in your name. Each year -- for up to 10 years -- your account will be credited with $2,500 plus interest. You can begin using the money in your account to pay for IBM health care coverage when you leave IBM anytime after meeting certain age and service requirements. If you leave beforehand, you forfeit your account balance. You will receive periodic statements showing you exactly how much you have in your account. You can track how much IBM expects to contribute to your post-career health coverage and plan how much you need to save on your own. In the next few days, employees will receive home mailings TP