2015 IBM Benefits Summary
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2015 IBM Benefits Summary
Table of Contents
2015 IBM Benefits Summary 3
Eligibility 3
About your health and disability benefits 3
Medical Choices 3
IBM PPO (Preferred Provider Organization) 3 3
IBM PPO Plus 3
IBM Exclusive Provider Organization 3
IBM PPO with Health Savings Account (HSA) 4
IBM PPO Plus with Health Savings Account (HSA) 4 4 6
Health Maintenance Organization 4
Medical benefits: Comparing options 5
2015 Medical benefits: Comparing plan features 6
Integrated Health Services Program 6
Managed Mental Healthcare Program 6
Prescription Drug Benefits 7 7
Dental Choices 9 8
IBM Dental Plus 9
IBM Dental Basic 9
CIGNA Dental Maintenance Alternative (DMA) 9
Vision Choices 10
IBM Vision Plan 10
Vision Discount Card 10
Employee Monthly Contributions 10
Disability Coverage 11
Short-Term Disability Income Plan 11
Long-Term Disability Plan 11
Other IBM Benefits Programs 11
New Hire Healthy Living Rebate 11
Employee Assistance Program 11
Health Care Spending Account 12
Dependent Care Spending Account 12
Special Benefits and Services 12
Special Care for Children Assistance Plan 12
Adoption Assistance Program 12
Lifeworks 13
IBM Leave of Absence Programs 13
Life Insurance, Survivor Benefits and Other Options 13
IBM-provided insurance and survivor benefits 13
Group Life Insurance 13
Survivor Health Benefit 13
Transitional Medical Program (TMP) 13
Travel Accident Insurance Plan 13
Optional Insurance opportunities 13
Group Universal Life Insurance Program 13
Access to post-employment health care 14
Time for Leisure Activities 14
Holiday Plan 14
Vacation Plan 14
Capital Accumulation and Investment 15
IBM 401(k) Plus Plan 15
Employees Stock Purchase Plan 16
IBM MoneySmart 16
Disclaimer 16
IBM has implemented policies and practices to appropriately protect the privacy of your personal health information.
Personal health information you provide will be handled in accordance with IBM Corporate Instruction HR113 98/11:
Protection of Employee Information and the IBM Guidelines for the Protection of Employee Information. To obtain a copy
of these documents, please contact the IBM Employee Services Center.
The benefits described in this brochure are for IBM regular employees.
22015 IBM Benefits Summary receive a no-coverage credit of $30 per month.
IBM offers a competitive benefits program, designed to
IBM offers service-based disability benefits. Those with
help employees build a solid financial foundation to meet
less than five years of service receive company-paid
a diverse array of needs—health care, retirement
short-term benefits of 100% of pay for the first three
security, income protection and personal interests. Key
months of disability, and 66-2/3% of pay for the second
features:
three months. Employee-paid long-term disability
insurance is available for purchase with before-tax dollars.
• A health benefits portfolio that provides strong support for
employee well-being and preventive care, comprehensive
After five years of service, employees receive company-
coverage to meet a range of medical situations, and solid
paid short-term disability of 100% of pay for six months,
protection against the cost of serious injury or illness.
and long-term disability insurance of 50% percent of pay,
• A retirement program that helps build future financial
with the opportunity to purchase additional coverage using
security through a leading-edge 401(k) plan and other
before-tax dollars.
capital accumulation programs.
• Income protection in case of serious illness, injury or death,
including life insurance and disability benefits. More detail about IBM’s full program of health, retirement
• Opportunity to follow leisure pursuits through vacation, and income protection benefits follows.
personal leave and holiday plans.
Medical Choices
Eligibility IBM PPO (Preferred Provider Organization)
You are eligible for all applicable benefit programs, The IBM PPO has a broad nationwide network of
except the IBM Employee Stock Purchase Plan, providers that provide care at discounted rates and offers
beginning with your first day of employment. the flexibility to receive care out-of-network at higher
Health care coverage (medical, dental and vision) is costs. It offers strong coverage for prevention, wellness
available for you, your spouse or eligible domestic and routine medical care, including in-network eligible,
partner, eligible children and other dependents. routine preventive screenings and preventive office visits
IBM requires documentation to support the eligibility of at no cost. Additionally, care provided by your in-network
any dependent enrolled in an IBM benefit plan. If you do primary care physician is covered at 100%. You may see
not provide sufficient documentation to the IBM plan any provider you choose without obtaining a referral. If you
administrator in a timely fashion following your reach the annual out-of-pocket maximum, the plan will pay
dependents’ enrollment, that dependent will lose IBM 100% of your in-network medical expenses for the
coverage and will remain ineligible for future coverage. remainder of the year. Coverage through the IBM PPO is
available to all full-time employees for $15 per month for
employee-only coverage.
About your health and disability benefits
IBM provides a range of options, to allow employees to
design a personalized program that meets their personal IBM PPO Plus
or family circumstances. You can enroll in benefits when The IBM PPO Plus offers the same broad network of
you first join IBM, and you’ll have the opportunity to providers that is available through the IBM PPO, along
review and change your benefits each year during the with the flexibility to seek care out-of-network at a higher
enrollment period, usually held in the fall. Employees pay cost (a deductible may apply). You may see any provider
for their share of benefit coverage through payroll you choose without obtaining a referral.
deductions.
IBM’s medical options include: Under PPO Plus, you'll pay a higher monthly contribution
for coverage and — with a lower in-network deductible —
• IBM Preferred Provider Organization (PPO) potentially lower overall costs for care. If you reach the
• IBM PPO Plus annual out-of-pocket maximum, the plan will pay 100% of
• IBM Exclusive Provider Organization (EPO) your eligible medical expenses for the remainder of the
• IBM PPO with Health Savings Account (HSA) plan year. It offers strong coverage for prevention,
• IBM PPO Plus with Health Savings Account (HSA) and wellness and routine medical care. There is no charge for
• Health Maintenance Organizations (HMOs), where in-network eligible, routine preventive services. Care
available. provided by your in-network primary care physician will be
covered at 100%.
IBM Exclusive Provider Organization
IBM also offers up to three dental options in most locations,
The IBM Exclusive Provider Organization (EPO) offers
along with vision care coverage and flexible spending
some of the features of an HMO, with the coinsurance-
accounts.
based cost structure found in most Preferred Provider
Coverage under the IBM PPO with HSA is available to Organizations (PPOs). The IBM Exclusive Provider
full-time employees at no cost for employee-only Organization is an "in-network-only" option, which means
coverage. Employees who decline medical benefits can you must use network doctors, hospitals and other
3facilities to receive benefits.
The out-of-pocket maximums (in-network) are:
Participants pay coinsurance for most services and fixed
IBM PPO with HSA
copayments for higher cost services, such as inpatient
Individual Deductible: $6,450
hospital care, outpatient surgery and emergency room
Family Deductible: $12,900
visits. There is no deductible. You may see any network
provider that you choose without a referral. In addition to
IBM PPO Plus with HSA
the preventive and routine care coverage offered by the
Individual Deductible: $2,000
IBM PPO options, the IBM Exclusive Provider
Family Deductible: $4,000
Organization offers significant protection for serious or
chronic medical conditions. Additionally, care provided by
your in-network primary care physician will be covered at The out-of-pocket maximums are “embedded”
100%. accumulators so they work differently than the HSA
deductibles, which are “aggregate” accumulators. If one
individual meets their out-of-pocket maximum, the plan will
IBM PPO or PPO Plus with Health Savings Account
start to pay at 100% for that individual. Each family
(HSA)
member’s out-of-pocket costs are applied to the family
The IBM PPO and PPO Plus with Health Savings
out-of-pocket maximum, so the family will reach the limit
Account (HSA) are similar to the IBM PPO and PPO Plus sooner and the plan starts to pay for all family members at
options respectively. They are high-deductible options 100%.
that offer a unique feature, a health savings account,
which can be used to pay for eligible current out-of-
pocket medical costs or to save for future health care A Health Savings Account is different from a Health Care
expenses. For participants who enroll in the Health Spending Account in that unused contributions to a Health
Savings Account, IBM will contribute up to $500 in 2015. Savings Account simply roll over to the next year–they are
Additional incentives may also be earned ranging from not forfeited. It is also important to note that you may
$300 for individual coverage to $1,100 for family enroll in either the IBM Health Care Spending Account or
coverage; incentives earned will be deposited into one of the Health Savings Account plan options, but not
employees’ Health Savings Account (HSA). Employees both.
may contribute up to the IRS annual contribution limit of
$3,350 for single coverage and $6,650 for a couple or Coverage through the IBM PPO with HSA is available to
family. Like the other IBM PPO options, there is no all full-time employees at no cost for self only coverage.
charge for in-network eligible, routine preventive Contributions are required for dependents.
services. However, to comply with Internal Revenue
Service (IRS) regulations for HSAs, all other services
(with the exception of certain preventive prescription Health Maintenance Organization
drugs) are subject to the deductible. The IBM PPO with A Health Maintenance Organization (HMO) provides
HSA and IBM PPO Plus with HSA features other provi- comprehensive, coordinated health care services for a
sions that conform with recent IRS HSA guidelines—for fixed prepaid fee through a network of providers.
example, the deductible amount itself meets the IRS Participants are typically responsible for copayments
requirement for a “high deductible” plan. The deductible and/or coinsurance for physician visits and other services.
and out-of-pocket maximums also work differently under
the IBM PPO with HSA and IBM PPO Plus with HSA, Generally, you aren’t covered for services outside the
particularly if you enroll dependents in these options. network, except for emergencies. When you enroll in an
HMO, you select a primary care physician (PCP) to
coordinate your care.
If you enroll in one of the IBM HSA plan options, an
aggregate deductible applies when you cover
dependents. If you enroll in self only coverage, you have
to satisfy the Individual deductible before the plan pays
benefits. If you enroll dependents (one or more), the
family deductible must be met before the plan pays
benefits for any covered individual. The family deductible
must be met even if one person is incurring all of the
expenses. The deductibles are:
IBM PPO with HSA
Individual Deductible: $2,550
Family Deductible: $5,500
IBM PPO Plus with HSA
Individual Deductible: $2,000
Family Deductible: $4,000
42015 Medical Benefits: Comparing options
IBM PPO IBM PPO Plus IBM EPO IBM PPO with IBM PPO Plus Typical HMO
HSA with HSA
Plan type Preferred Provider Preferred Provider Exclusive Provider High Deductible High Deductible Health Maintenance
Organization Organization Organization Preferred Provider Preferred Provider Organization
Organization with Organization with
Health Savings Health Savings Account
Account (HSA) (HSA)
Level of Moderately managed Moderately managed Highly managed Moderately managed Moderately managed Highly managed
managed
care
Key You may obtain care Same structure and You may obtain care You may obtain care You may obtain care You may obtain care
features from in- and out-of- flexibility as IBM PPO, through a network of from In- and Out-of- from In- and Out-of- through a network of
network providers; higher cost for providers; no network providers; network providers; HSA providers to receive
you’ll receive the coverage in exchange coverage if you go HSA lets you use tax- lets you use tax-free benefits; no
highest level of for lower in-network out of network. No free dollars to pay for dollars to pay for coverage if you go
benefits if you use deductible. Specialty charge for eligible In- current or save for current or save for out of network
network providers. No care office visits Network preventive future health care future health care
charge for eligible in- “deductible free” for services. No charge needs; IBM will needs; IBM will
network preventive in-network care. No for primary care contribute up to $500 contribute up to $500 in
services. No charge charge for eligible in- office visits in 2015. No charge for 2015. No charge for
for in-network primary network preventive eligible In-Network eligible In-Network
care office visits services or in-network preventive services. preventive services. No
primary care office No charge for primary charge for primary care
visits care office visits after office visits after
deductible is satisfied deductible is satisfied
Primary Not required Not required Not required Not required Not required PCP is required to
care coordinate all your
physician care.
(PCP)
Referral
Filing You file claims for out- You file claims for out- No claim form to file You file claims for out- You file claims for out- No claim form to file
claims of-network care only of-network care only of-network care only of-network care only
Primary Care
Care provided by your in-network primary care physician will be covered at 100% under the IBM PPO, IBM
PPO Plus and IBM EPO options. Under the IBM PPO with HSA and IBM PPO Plus with HSA, primary care
will be covered at 100% after the appropriate deductible has been satisfied. Primary care physicians include
general practitioners, internists, family practitioners, pediatricians, and osteopaths. Keep in mind the doctor
may perform tests or request other services (e.g. lab) that will have a separate charge that may be subject to
the deductible and applicable coinsurance.
52015 Medical Benefits: Comparing Plan Features
IBM PPO with IBM PPO Plus
Plan Feature IBM PPO IBM PPO Plus IBM EPO Typical HMO
HSA with HSA
Annual In-network: In-network: None $2,550/$5,500 $2,000/$4,000 None
deductible $1,350/$4,000 $300/$600 (combined in- and (combined in- and
(individual/family) Out-of-network: Out-of-network: out-of-network) out-of-network)
$2,350/$7,200 $2,350/$7,200
Routine In-network: In-network: No charge In-network: In-network: Varies by HMO
Preventive No charge No charge No charge No charge
Services Out-of-network: Out-of-network: Out-of-network: Out-of-network:
You pay 45% You pay 45% You pay 45% You pay 45%
Deductible-free Deductible free Deductible free Deductible free
Other Office Visits In-network: In-network: No charge for PCP; In-Network: In-Network: Varies by HMO
No charge for PCP; No charge for PCP; You pay 25% for No charge for PCP No charge for PCP
You pay 25% for SCP You pay 25% for SCP after deductible; after deductible;
Deductible free SCP Deductible free You pay 20% for You pay 20% for
Out-of-Network: Out-of Network: SCP after deductible SCP after deductible
You pay 45% after You pay 45% after Out-of-Network: Out-of-Network:
deductible deductible You pay 45% after You pay 45% after
deductible deductible
Hospital, In-network: In-network: Inpatient: In-network: In-network: Varies by HMO
Out-patient You pay 20% after You pay 20% after $903 Copay per You pay 30% after You pay 30% after
Surgery deductible (Facility deductible Inpatient admission deductible deductible
Charges) Out-of-network: Outpatient: You pay Out-of-network: Out-of-network:
Out-of-network: You pay 45% after 25% Per admission; You pay 45% after You pay 45% after
You pay 45% after deductible Outpatient non- deductible deductible
deductible surgical facility: You
pay 25%. No charge
PCP / 25% SCP
Lifetime Benefit Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Maximum
Annual out-of- In-network: In-network: $6,350/$12,700 In-network: In-network: Varies by HMO
pocket maximum $6,600/$13,200 $6,100/$9,100 $6,450/$12,900 $6,450/$12,900
(includes Out-of-network: Out-of-network: Out-of-network: Out-of-network:
deductible) $15,000/$27,000 $15,000/$27,000 $15,600/$23,500 $15,600/$23,500
Integrated Health Services Program Managed Mental Health Care Program The
The IBM PPO, IBM PPO Plus, IBM EPO, IBM IBM Managed Mental Health Care Program
PPO with Health Savings Account (HSA) and provides comprehensive inpatient and outpatient
IBM PPO Plus with Health Savings Account treatment for emotional and psychological
(HSA) plans feature the Integrated Health problems, substance abuse and related
Services Program, designed to help manage conditions. Participants have access to a
employees’ health care services. This program network of licensed psychiatrists, psychologists,
includes one-on-one outreach and support to social workers, psychiatric nurses, and mental
those with serious illness and other complex health and substance-abuse facilities. Pre-
medical situations. Care coordinators — certification is required to receive the highest
registered nurses employed by each of the level of reimbursement. Services are available to
regional health plans are available 24 hours a employees and their dependents enrolled in IBM
day, 7 days a week — will provide precertification PPO, IBM PPO Plus, IBM EPO, IBM PPO with
for inpatient hospital admission, medical Health Savings Account (HSA) and IBM PPO
consulting services, assistance and support to Plus with Health Savings Account (HSA).
IBM medical plan participants and their families.
Access to expert assistance in managing chronic
conditions is also available through the program.
6Prescription Drug Benefits
Under IBM PPO, IBM PPO Plus, IBM EPO, IBM PPO with HSA and the IBM PPO Plus with HSA,
prescription drug services are provided by CVS/caremark through the IBM Managed Pharmacy Program.
Employees can save money on retail and home-delivery prescription drugs when a prescription is filled
through a CVS/caremark participating pharmacy or via the CVS/caremark Mail Service pharmacy.
Employees are charged a coinsurance fee for prescriptions received from retail pharmacies or the
CVS/caremark Mail Service Pharmacy. Percentages and limits may vary, and employees pay less if they
use a network pharmacy or mail order. Refer to the prescription drug matrices below for details. Under the
PPO with HSA and PPO Plus with HSA, prescription drug benefits, with the exception of certain preventive
drugs, are subject to the plan deductible, and will apply to the Out-of-Pocket Maximum.
Maintenance Choice® You can obtain your long-term medications through the CVS/caremark Mail Service
Pharmacy and have them shipped directly to your home or you can pick them up at your local CVS retail
pharmacy for the same coinsurance. Please note, Maintenance® Choice is only available at CVS brand
retail pharmacies and not other retail pharmacies in the CVS/caremark retail pharmacy network.
Prescription Drug Coverage – the maximum you pay if enrolled in the EPO, PPO, PPO Plus:
Traditional Mail Order or Non-Participating
Retail Pharmacy
Medications Maintenance Choice® Pharmacies
Generic 20% up to $24 20% up to $26 30% of actual cost
Formulary Brand 20% up to $90 20% up to $225 30% of actual cost
Non-Formulary Brand 50% up to $180 50% up to $450 55% of actual cost
Specialty Mail Order or Non-Participating
Retail Pharmacy
Medications Maintenance Choice® Pharmacies
Generic 20% up to $31 20% up to $33 30% of actual cost
Formulary Brand 20% up to $97 20% up to $244 30% of actual cost
Non-Formulary Brand 50% up to $201 50% up to $503 55% of actual cost
Prescription Drug Coverage – the maximum you pay if enrolled in the PPO with HSA or PPO Plus
with HSA:
Traditional Mail Order or Maintenance Non-Participating
Retail Pharmacy
Medications Choice® Pharmacies
10% of discounted cost 10% of discounted cost after 30% of actual cost after
Generic
after deductible up to $150 deductible up to $450 deductible
30% of discounted cost 30% of discounted cost after 40% of actual cost after
Formulary Brand
after deductible up to $150 deductible up to $450 deductible
50% of discounted cost 50% of discounted cost after 55% of actual cost after
Non-Formulary Brand
after deductible up to $150 deductible up to $450 deductible
Specialty Mail Order or Maintenance Non-Participating
Retail Pharmacy
Medications Choice® Pharmacies
10% of discounted cost 10% of discounted cost after 30% of actual cost after
Generic
after deductible up to $150 deductible up to $450 deductible
30% of discounted cost 30% of discounted cost after 40% of actual cost after
Formulary Brand
after deductible up to $150 deductible up to $450 deductible
50% of discounted cost 50% of discounted cost after 55% of actual cost after
Non-Formulary Brand
after deductible up to $150 deductible up to $450 deductible
7GenericsAdvantage
The GenericsAdvantage component of
the IBM Managed Pharmacy Program
reduces your out-of-pocket costs when
you buy generic instead of brand name
prescription drugs. If a generic equivalent
(identical active ingredient) is available
and you choose a brand name drug
instead, you will pay the full generic
coinsurance plus the difference in cost
between the generic and brand name
drug. The per prescription maximum will
not apply as it usually would for
CVS/caremark participating pharmacies
and mail order prescriptions.
However, if your physician validates it is
clinically indicated for you to use the
brand name drug, you will only pay the
brand name coinsurance (and not the
difference in cost). In those few cases
where a particular brand name drug is
comparably priced with a generic in the
same class of drugs, prior authorization
will not be required for that drug. Prior
authorization will still be required for other
brand name drugs in that class;
otherwise they will not be covered.
Specialty Medications
If you require a prescription for a specialty
medication, your doctor will first need to contact a
CVS/caremark pharmacist for authorization to
confirm that the treatment complies with standard
clinical guidelines. This requirement will help
ensure that you receive proper drug, dose and
treatment based on your diagnosis.
Note: For participants in fully insured HMOs,
prescription drug benefits are provided through
the HMO and vary by plan. See your Health Plan
Detail Sheets for details.
8Dental Choices • 20% for preventive and minor restorative care (no
deductible for preventive care) plus any amount
Not everyone’s dental needs are the same. Some over U&P.
employees may visit the dentist only twice a year • 35% for major restorative care plus any amount
for checkups; others may require more extensive over U&P.
work every year. The IBM Personal Benefits • 50% for orthodontia treatment up to a lifetime
Program offers up to three different dental maximum of $2,500 plus any amount over U&P.
coverage options to meet these varying needs.
IBM Dental Plus pays benefits up to an annual
IBM Dental Basic maximum of $2,000 per covered individual. There
This option covers preventive, diagnostic and is no lifetime maximum benefit except for
basic restorative dental care. There is no orthodontic treatment benefits—up to $2,500 per
coverage for major restorative care or covered individual—which is not counted toward
orthodontia. Employees have the flexibility to use the annual maximum.
any eligible dentist. However, employees can
receive a higher level of benefits if they use a CIGNA Dental Maintenance Alternative
network provider. If employees use an in-network With the CIGNA Dental Maintenance Alternative
dentist, the plan covers preventive care at 100% (DMA) – also known as the CIGNA Dental Health
(including up to two routine exams per year). Maintenance Organization, or DHMO, employees
receive dental care from dentists and other
For minor restorative care, employees will pay providers who are part of an organized network.
20% of a specially negotiated fee, with no A DMA is similar to an HMO in its managed-care
deductible. If employees use an out-of-network approach. It offers lower out-of-pocket costs for
dentist or live in an area where a network dentist most services, with no deductible to meet and no
is not available, they pay 20% of the U&P rate claim forms to file. Participants must select a
plus any amount above the U&P rate for covered primary care dentist to coordinate care.
preventive and minor restorative care expenses. Generally, employees are not covered for care
There is no annual deductible. IBM Dental Basic received outside the CIGNA DMA (or DHMO)
pays benefits up to an annual benefit maximum network.
of $500 per covered individual. There is no
lifetime benefit maximum.
IBM Dental Plus
This option covers a broad range of dental
services, including preventive, diagnostic, basic
and major restorative care, and orthodontia.
Although employees have the flexibility to use
any eligible dentist, they can receive a higher
level of benefits if they use a network provider. If
employees use a dentist in the network, the plan
covers preventive care at 100% (including up to
two routine exams per year). For all other eligible
expenses, employees pay a percentage of
specially negotiated fees, with no deductible, as
follows:
• 20% for minor restorative care
• 35% for major restorative care
• 50% for orthodontia treatment up to a lifetime
maximum of $2,500
If employees use an out-of-network dentist or live
in an area where a network dentist is not
.
available, they will pay a percentage of the usual
and prevailing (U&P) rate, plus any amount
above the U&P rate, after meeting a $50-per-
Person annual deductible (waived for preventive
care) as follows:
9Vision Choices EyeMed Vision Discount Card
Employees can receive a free vision discount
card, which allows them to save money each
IBM Vision Plan
time they buy frames, lenses, contact lenses, or
The IBM Vision Plan, administered by Anthem
other eyewear purchased through specific vision
Blue View Vision, provides coverage for standard
care centers. Employees pay no monthly
eye exams at 100% coverage if employees use contributions for the card, but must enroll to
an eye doctor who participates in the network. Or
receive it. Employees can choose to enroll in the
they can go out-of-network to the provider of their
IBM Vision Plan or EyeMed Vision Discount
choice. With out-of-network care, reimbursement Card, but not both.
is based on a schedule of benefits.
2015 Employee Monthly contributions (1)
Additional Cost for a
Employee Each child (2)
Spouse or Domestic Partner
Medical
IBM PPO $15 $247 $142
IBM PPO Plus $73 $315 $176
IBM PPO/Health
$0 $98 $68
Savings Account
IBM PPO
Plus/Health $10 $193 $116
Savings Account
IBM EPO $93 $335 $186
HMO Varies Varies Varies
Dental
IBM Dental Basic $22 $22 $15
IBM Dental Plus $52 $52 $34
CIGNA DMA $37 $37 $24
Vision
Plan $8.90 $8.90 $8.90
Discount Card No charge No charge No charge
Note: Employees pay for each child they cover separately, up to six children. If they choose to cover more than six
children, there is no additional cost.
10Disability Coverage
Other IBM Benefit Programs
Short-Term Disability (STD) Income Plan
IBM’s Short Term Disability (STD) Benefit Plan New Hire Healthy Living Incentive
provides employees with salary continuation for IBM offers a $150 Healthy Living Incentive to
each day they are absent due to illness or injury, encourage health and vitality among new IBM
up to a maximum of 26 weeks in a period of 12 employees. If you enroll in the IBM PPO, IBM
consecutive months. You are eligible for this PPO Plus, IBM EPO, HMO or decline medical
coverage on your first day of employment. coverage you may participate.
Employees with less than five years of service To receive the New Hire Healthy Living Incentive,
will receive 13 weeks at 100% of pay, and then employees must complete the incentive
an additional 13 weeks at 66 2/3% pay. requirements by Dec. 1st, 2015:
Employees with five or more years of services Health Savings Account (HSA) Incentives
will receive 26 weeks at 100% of pay. If you enroll in the IBM PPO with Health Savings
Account (HSA) or IBM PPO Plus with Health
The benefits provided under this plan are offset Savings Account (HSA) you can earn up to $300
with any Social Security Disability Income or in incentives for individual coverage and up to
Workers Compensation payments, or both. To $1,100 for family coverage; incentives earned will
receive STD benefits, employees may be asked be deposited directly into employees’ Health
to provide supporting documentation. In the event Savings Account (HSA).
employees become totally disabled, they receive
maximum benefits under this plan before benefits To receive these incentives, employees must
begin under the Long-Term Disability (LTD) Plan. complete the incentive requirements by
December 1st, 2015.
Long-Term Disability Plan
This plan provides employees with important Employee Assistance Program
income protection if they become sick or injured The Employee Assistance Program (EAP)
for an extended period of time. For employees provides short-term counseling for any life issues
with less than five years of service, the plan including communicating effectively, stress
offers the following options: management, marital counseling and parenting.
A Clinical Referral Line (CRL) is the entry point
for the EAP, which also offers up to eight free
• No coverage counseling visits with a licensed mental health or
• 50% of pay, employee-paid with before-tax substance-abuse professional. The EAP is
dollars available to all benefit-eligible employees and
• 66 2/3% of pay, employee-paid, with before- tax their dependents, including HMO participants and
dollars those who elect to opt out of benefits. EAP
services are provided by Optum by United
If you do not choose an LTD coverage option Behavioral Health.
when you enroll, you will be automatically
enrolled in the 50% LTD option.
For employees with five or more years of service,
the plan offers the following options:
• 50 percent of pay (employer-paid)
• Buy-up to 66 2/3 percent of pay (employee-paid
with before-tax dollars)
Coverage is offset with other sources of disability
income, such as Social Security Disability Income
or Workers’ Compensation, or both. The LTD
period begins on the date immediately following
the expiration of the STD Income Plan coverage.
11Health Care Spending Account • Before each plan year, employees can elect to
Active employees can elect to use the Health set aside an amount of money based on their
Care Spending Account to set aside up to $2,500 estimated dependent care expenses.
per year (as allowed by the IRS) for eligible • Participation is allowed if employees need
health care expenses. Contributions are dependent care to enable themselves and
deducted from each paycheck on a before-tax their spouses to work, or themselves to work
basis. These expenses, which otherwise might and their spouses to attend school full-time.
be paid with after-tax dollars, can include • The amount elected is deducted from their
deductibles, copayments and other unreimbursed paychecks before taxes.
medical, dental, vision and hearing expenses. • An annual maximum of $5,000 can be set aside
Expenses for eligible family members can also be for dependent care. Any unused money set
reimbursed, even if they are not covered under aside is forfeited.
the employee’s benefits. The Internal Revenue
Service (IRS) has established a number of
Special Benefits and Services
regulations governing such plans. For example,
the account cannot be used to pay premiums for
coverage under other health care plans. Also, Special Care for Children Assistance Plan
any money remaining in the account must be The Special Care for Children Assistance Plan
forfeited if it is not used for expenses incurred (SCCAP) provides financial assistance outside
during the plan year. the scope of the medical and dental plans for the
care of a child with a mental or physical disability,
or both, or a child with a developmental or
Employees who participate in the Health Care learning disorder. Each case is individually
Spending Account and are also enrolled in the reviewed to determine eligibility for assistance.
IBM PPO, IBM PPO Plus, IBM Exclusive Provider Upon approval, reimbursement is provided for a
Organization or certain HMOs will receive a portion of the eligible charges incurred, up to a
Health Debit Card – a stored value card that will lifetime maximum of $50,000 per child or until the
enable them to pay their portion of the cost of child attains the age of 26, or until the child is no
eligible prescription drug expenses through longer eligible under the IBM Medical and Dental
automatic deduction from their Health Care Benefits Plans, whichever comes first. The
Spending Account. When employees use this following types of treatment and services may be
card at participating pharmacy providers their eligible for coverage under SCCAP:
Health Care Spending Account will be debited for
the copay or coinsurance amount when
prescription drugs are purchased. Using the • Special education facilities
Health Debit Card will eliminate the need for • Independent practitioners and services
employees to file claims to receive • Academic remediation
reimbursement for out-of-pocket prescription drug • Evaluation and testing
costs. • Special devices
Reminder: You may enroll in either the Health Adoption Assistance Program
Care Spending Account or the IBM PPO with The Adoption Assistance Plan provides financial
Health Savings Account, but not both. assistance toward expenses incurred in the
adoption of children. Employees are eligible for
this benefit from the first day of employment. The
Dependent Care Spending Account plan covers 80% of eligible expenses up to a
The Dependent Care Spending Account (DCSA) maximum of $2,500 per adoption per family.
lets employees allocate before-tax dollars to an Eligible expenses include:
account to help pay for eligible dependent care
expenses. Based on federal tax legislation, the
plan is an alternative to the tax credit allowed for • Application fees
child and dependent care expenses. Highlights of • Adoption agency fees
the plan are as follows: • Placement fees
• Lawyers and other required legal fees
• Maternity fees for child’s birth mother
12LifeWorks $50,000 is viewed by the IRS as taxable income
To help employees balance personal and (referred to as imputed income) and employees
professional responsibilities, IBM offers are responsible for the associated taxes.
LifeWorks, a free resource and referral program
to help employees organize time, find child care,
Survivor Health Benefit
plan an adoption, plan budgets, adjust to
When an eligible employee dies, coverage for
changes at work, and obtain elder care referral
eligible survivors can continue under the
services and more.
Transitional Medical Program (TMP) for up to 36
months from the date coverage ends under IBM,
IBM Leaves of Absence Program should the survivor elect to enroll in TMP.
The IBM Leaves of Absence (LOA) Program Coverage and contributions for a surviving
provides employees unpaid time away from work spouse and eligible dependents are determined
for an extended period. by the plan in effect at the time of the employee’s
death, and may be modified thereafter.
Employees can request an LOA for a variety of
circumstances such as dependent care or Transitional Medical Program
continuing education. Eligibility for voluntary The Transitional Medical Program (TMP) is a
LOAs (for example, personal leaves, Peace health care continuation of coverage program
Corps leaves or continuing education) is based available to participants of the IBM plans when
on business needs and satisfactory job eligibility for IBM health care benefits ceases.
performance. Voluntary LOAs are granted based TMP satisfies the requirements of federal
on management approval. legislation (COBRA), which gives continuation
rights to employees and their dependents who
lose coverage due to certain qualifying events
In some situations, time off is required by law,
(for example, termination, divorce, death, loss of
such as military leave or Family and Medical
dependent eligibility). Under TMP, for a limited
Leave Act time off. While they are participating in
time, employees can continue coverage
the LOA Program, in most cases, employees will
equivalent to that which they had been receiving
be eligible for similar benefit plans and programs
as an IBM benefits recipient or covered
as other regular employees. The cost for
dependent. Employees pay for coverage at 102%
coverage will remain the same unless changes
of the group rate.
are made to existing coverage.
Business Travel Accident Insurance Plan
Life Insurance, Survivor Benefits and Provides insurance benefits if employees are
Other Options traveling away from their job locations or homes
on authorized company business. Eligibility starts
IBM provides, at no cost to the employee, life with the first day of employment. The plan
insurance and business travel accident provides benefits up to five times annual
insurance. Employees also have the option to compensation ($50,000 minimum) for accidental
purchase additional life insurance at group rates. bodily injuries that result in death,
Additionally, health care coverage for surviving dismemberment or loss of sight, hearing or
spouses and eligible surviving dependents is speech.
provided for a period of time. The insurance
provided by IBM, as well as optional insurance Optional Insurance opportunities
opportunities, are summarized in the following
Group Universal Life Insurance Program
sections.
Employees have the opportunity to apply for
term-life coverage for themselves or their eligible
IBM-provided insurance and survivor benefits family members, or both, under the Group
Group Life Insurance Universal Life (GUL) Insurance Program.
The IBM Group Life Insurance (GLI) benefit Employees enrolled in this program may receive
equals one times an employee’s annual salary, coverage up to eight times their annual salaries.
up to a maximum of $1 million. The IBM GLI plan Coverage for spouse is available up to $200,000
includes a feature for terminally ill employees to and child rider coverage for $10,000 is available
have access to one-half of their benefits (up to for each eligible child. Optional Accidental Death
$50,000), with the remaining benefit paid to the and Dismemberment (AD&D) coverage, which
beneficiary either as a lump sum or in annuity doubles the basic coverage in the event of
payments. Additionally, a check-writing feature is accidental death is available for employees and
available to the beneficiary. Although the GLI their spouses. Employees must apply for GUL.
plan is offered to all IBM employees at no cost, Eligible employees who apply within the first 90
the value of the premiums for coverage above days of hire may receive coverage of two times
13their annual base pay, not to exceed $750,000, Vacation Plan
with no medical evidence and coverage of The Vacation Plan is based on years of service.
greater than two times annual base pay with Scheduling is based on business and personal
simplified evidence of good health. preference. Employees can take vacation any
time during the year in weeks, days or half-days.
For financial-planning purposes, GUL has a
capital accumulation feature that offers an IBM service Weeks of vacation
opportunity to earn tax-deferred interest on cash
Less than 10 years 3
contributions made while insured. Based on age
and each $1,000 of life insurance coverage, 10 or more years 4
employees are allowed to deposit cash in the
form of an additional premium, which then earns
tax-deferred interest. The GUL program is
administered and underwritten by The Prudential
Insurance Company of America. This program is
not endorsed by IBM.
Access to post-employment health care
Newly hired employees will have access to post-
retirement IBM health care coverage if certain
age and service requirements are met.
Employees will be eligible for access if they leave
IBM at age 55 with at least five years of service,
and their age plus service equals 65 (“Rule of
65”).
Those who are eligible for access can continue
IBM health care coverage for themselves and
eligible dependents by paying full retiree rates.
There is no time limit or maximum coverage
period; however, election of coverage is a one-
time enrollment opportunity. If coverage is not
elected within the specified enrollment period
immediately following retirement from IBM,
employees are considered to have declined
access coverage and they waive the right to any
future election of coverage.
Time for Leisure Activities
Holiday Plan
IBM provides 12 holidays each year; six days are
observed nationally:
• New Year’s Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving Day
• Christmas Day
The other six holidays vary by location based on
operating requirements or local custom. At least
one of these days is considered a Personal
Choice Holiday.
14Capital Accumulation and Investment earnings (subject to IRS limits) or may stop
participation at any time
IBM 401(k) Plus Plan • After one year of service, IBM will:
With IBM 401(k) Plus, employees have at least • Contribute 1% to employee’s account
three ways to save: before-tax, after-tax, or regardless of their savings levels
through a Roth 401(k) option – or all three. Each • Match 100% of the first 5% of
option has different advantages for you and employee’s Pre-tax or Roth
different tax consequences. Savings are contributions
automatically deducted from your paycheck, and • The IBM match will be deposited on
you decide how to invest them. Dec. 31 (or the last business day of the
year) for employees on active payroll as
of Dec. 15.
Save before-tax: Subject to an IRS annual • Rollovers from former employer’s pre-tax
contribution limit that can change each year, you qualified plan are allowed
can save up to 80% of your eligible pay before • Loan provision is available
taxes are deducted. When you use this savings
• Key provisions include:
feature, IBM matches your savings; plus, you
• 33 primary investment options to select
lower your taxable income. You will pay income
from, along with access to
tax on this savings and any investment growth
approximately 165 brand-name mutual
when you withdraw the money.
funds through a Mutual Fund Window
• Several distribution methods
Save after-tax: You can also save up to 10% of • Disability protection insurance
your eligible pay on an after-tax basis, to provide (enrollment only during Fall Annual
further flexibility. You do not have to first reach Enrollment Period)
the IRS savings limit to use this option. With this • Account access via
feature, you contribute after taxes have been NetBenefits.com/ibm
deducted, while any investment growth on those
amounts is tax deferred. That means you will not 401(k) Plus Plan Investment Options
owe taxes on any investment growth until you
withdraw the money, when it’s taxed as ordinary
Target Date: 2050, 2045, 2040,
income. Tier 1: 2035, 2030, 2025, 2020, 2015, 2010,
2005
Roth 401(k): This feature allows you to save on Life Cycle
an after-tax basis now – but any investment Funds Life Strategy:
• Income
growth on your contribution is completely tax-free • Conservative
when you withdraw the money at a later date, • Moderate
assuming certain requirements are met. (Your • Aggressive
Roth 401(k) account must be at least five years • Interest Income Fund
old when you withdraw it, and you must take the • Inflation-Protected Bond
Tier 2:
money after you reach age 59½ to qualify for this • Total Bond Market
tax treatment). • Total Stock Market Index
Core Funds
• Total International Stock Market
Index
Your Roth 401(k) contributions are eligible to • Real Estate Investment Trust Index
receive IBM matching contributions. IBM • International Real Estate Index
matching contributions on the sum of your • High Yield & Emerging Market Bond
before-tax and Roth 401(k) contributions will not
exceed 5% of your pay. Withdrawals of IBM • Long-Term Corporate Bond
Tier 3:
Fund
matching contributions are not tax-free. • Large Company Index
Expanded
• Large-Cap Value Index
Choice Funds
Together, the sum of your Roth 401(k) and • Large-Cap Growth Index
before-tax 401(k) contributions may not exceed • Small/Mid-Cap Stock Index
• Small-Cap Value Index
the maximum IRS annual contribution. Key • Small-Cap Growth Index
features of IBM 401(k) Plus Plan are: • European Stock Index
• Pacific Stock Index
• Eligible on date of hire • IBM Stock
• Automatically enrolled into the before-tax • Emerging Markets Stock Index
401(k) at 5% of eligible earnings after Mutual Fund Window – 6 Families,
approximately one month on payroll, if no Tier 4: about 165 funds
action taken
• May increase contribution up to 80% of pre-tax Please read the IBM 401(k) Plus Plan Summary
Plan Description for more information.
15Employees Stock Purchase Plan
This plan gives employees an opportunity to
purchase IBM stock at a 5% discount off of the
market price on the date the shares are
purchased. Employees may elect to purchase up
to 10% of their eligible compensation, up to
certain plan and regulatory limits, for the
purchase of IBM stock through payroll
deductions.
.
As a general rule, individuals who are active
employees of IBM or any of its eligible
subsidiaries will be eligible to participate at the
beginning of the offering period following their
date of hire. Dates of offering are normally
January 1 and July 1.
More details on the plan can be found in the plan
prospectus, which employees can access on the
IBM intranet @ w3.ibm.com/hr/global/espp
once you have access to IBM Systems.
IBM MoneySmart
IBM MoneySmart is a comprehensive program
providing financial education and planning for
U.S. employees.
The program includes one-on-one phone
counseling with MoneySmart coaches –
credentialed financial representatives who are
specially trained in IBM programs and benefits.
IBM has partnered with two leading financial Important Legal Information:
firms - The Ayco Company, L.P.,a Goldman This document is intended to provide highlights of
Sachs Company, and Fidelity Investments – to certain benefit plans in which you may be eligible
help employees with financial decision-making to participate. Complete details are found in the
on a range of issues, including retirement and official plan documents, which are the complete
estate planning, debt management, college and exclusive statement of the Company’s
savings, tax strategies and others. obligations under the plan. The official plan
documents shall govern in the event of a conflict
between information contained in these or other
documents and statements. The plan
administrator retains exclusive authority and
discretion to interpret the terms of the benefit
plans and programs described herein.
The Company reserves the right, in its sole
discretion, to amend, change, suspend or
terminate any benefit or other plan, program,
practice or policy of the company at any time.
The Company does not have any obligation to,
and nothing contained in this document shall be
construed as creating an express or implied
obligation or promise on the part of the Company
to, maintain, continue to offer, or make available
such plans, programs, practices or policies.
Eligibility to participate in a plan or program or
receipt of benefits does not constitute a promise
or right of continued employment or render any
person an employee of IBM.
16© Copyright IBM Corporation 2012
IBM Corporation
Route 100
Somers, NY 10589
Produced in the United States of America
01-0
All Rights Reserved
IBM and the IBM logo are trademarks
of International Business Machines
Corporation in the United States, other
countries , or both.
Other company, product and service
names may be trademarks or service
marks of others.
Produced in the United States on recycled
paper containing 10% recovered post-
consumer fiber.
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