What does annual eligible pay and annual base pay mean?
Annual eligible pay is the figure used to determine the amount of your IBM-provided Group Life Insurance (GLI) while annual base pay is the figure used to determine the amount of your term life insurance and accidental death and dismemberment insurance under MetLife Optional Term Life (OTL).
| Employee Type | Annual Eligible Pay For IBM-provided Group Life Insurance (GLI) |
Annual Base Pay For MetLife Optional Term Life (OTL) |
| Regular full-time or part-time employee eligible for growth driven profit-sharing (GDP) | Your current monthly base salary rate times twelve, plus a percent of annual base salary as defined as follows:6% of current base pay for bands 1 – 9, and12% for band 10. | Your current monthly base salary rate times twelve. |
| Regular full-time or part-time employee or executive eligible for sales or service incentives | Your current monthly on-target earnings (OTE) times twelve. | Your current monthly base salary rate times twelve. |
| Regular full-time or part-time executive eligible for annual incentive pay (AIP) | Your current monthly base salary times twelve, plus your current AIP target. | Your current monthly base salary rate times twelve. |
| Regular employees on a Flexible Work Leave of Absence (FWLOA), Career Transition (CT) program, or Transition to Retirement (T2R) | Your monthly base salary prior to your FWLOA, CT or T2R status becoming effective, times twelve. | Your monthly base salary rate prior to your FWLOA, CT or T2R status becoming effective, times twelve. |
| Long-Term Supplemental Employees and Retiree Supplemental Employees | Not Applicable | Your current base salary rate times twelve. This base salary rate is dependent on your frequency of pay and employee class. |
Additional Considerations:
- While long-term supplemental employees and retiree supplemental employees are not eligible for GLI benefits, they can enroll themselves and their dependents in MetLife Optional Term Life (OTL) coverages.
- Eligible pay does not include any other payments, such as awards and additional compensation resulting from working unusual hours or conditions (for example, nonscheduled workdays, overtime or a different shift).
- If you are a part-time employee, your eligible pay will be based on your pro-rated base salary.
- For OTL and AD&D, your highest base pay since your enrollment in the plan will be used to determine your OTL and AD&D benefit amount. Meaning, that if you experience a decrease in base pay after you enroll in the plan, your benefit amount will remain stable. If you experience an increase in base pay after you enroll in the plan, your benefit amount will increase proportionally. If you unenroll yourself in OTL and re-enroll at a later date, your base pay will reset to the base pay in effect on the date of your re-enrollment.
- For GLI, your eligible pay is based on the eligible pay currently in effect. All decreases and increases will adjust your GLI benefit amount.