``Ahead of its Time'': IBM Garners Plan Sponsor of the Year Award.

GREENWICH, Conn. -- As American employers struggle to balance traditional responsibilities to worker retirement security amid challenging markets and an uncertain legislative environment, PLANSPONSOR's Plan Sponsor of the Year has consistently been ahead of its time.

"As we looked back over 2005, it was hard not to be struck by the vision demonstrated by this year's choice - International Business Machines," notes Nevin Adams, editor-in-chief of PLANSPONSOR, the nation's leading publication on benefits and retirement plan issues. "The elements of the program they rolled out in early 2005 - the addition of an annuity marketplace for participants, disability insurance for worker 401(k) contributions, and a shift in emphasis from a defined benefit plan to an enriched defined contribution model - were, as the title of this month's cover story suggests, ahead of their time. That they did so prospectively, and with an adjustment period long enough to provide their employees an opportunity to absorb and respond to the impact, is an approach that has subsequently been adopted by a number of other large programs in the intervening months."

"Lots of companies are more reactive, waiting for problems to arise or to follow other companies. We always try to be very proactive," says Karen Salinaro, IBM's vice president of compensation and benefits, about the company's retirement plan choices, in the current issue of PLANSPONSOR magazine.

IBM's proactive approach also has led the company to find innovative ways to offer some of the plusses of a traditional pension plan within the defined contribution context. Its 401(k) plan participants pay much less than workers at most comparable employers, and it has recently introduced groundbreaking new features to the 401(k) plan that seem destined to be the wave of the future as the nation's private pension system increasingly relies on a DC-centric model. More than 90% of IBM's US employees currently participate in the plan, and 88% already defer at least 6% of pay.

"America's workforce faces some daunting challenges in the years to come," notes Adams. "It is a pleasure to be able to acknowledge the efforts of plan sponsors such as IBM in helping them prepare for a financially secure retirement."

Each year the editors of PLANSPONSOR magazine, the industry's leading resource for pension and benefits related news, choose a plan sponsor that demonstrates leadership in providing a more secure retirement for workers. Previous recipients have included the United Methodist Church; Gary Amelio, executive director of the Federal Retirement Thrift Investment Board; David Bronner, head of the Retirement Systems of Alabama; the FDNY Pension Fund; and General Motors Investment Management Corporation's Allen Reed.

About PLANSPONSOR

PLANSPONSOR magazine is the nation's leading authority on retirement issues and benefits programs. PLANSPONSOR.com provides comprehensive news and commerce services dedicated solely to helping employers and financial advisors navigate the complex world of retirement plans and benefit programs on behalf of their employees or clients. For more information see www.plansponsor.com.

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