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Ibm Employee Stock Purchase Plan

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					     "EMPLOYMENT DRIVEN" CAPITAL
     ACCUMULATION OPPORTUNITIES

                                     TAX
                                  DEFERRED
                                  SAVINGS -
                                    401(k)
           AWARENESS
             LINKAGES
             SUPPORT
               ADVICE
          RESPONSIBILITY
               TOOLS                          EMPLOYEE
            EDUCATION                           STOCK
                ETC...                        PURCHASE
                                                 PLAN




                                                DEFINED
                       EMPLOYEE               BENEFIT PLAN


IBM CORPORATION
IBM CORPORATION
IBM INITIATIVES TO PROMOTE SAVING


Tools available to take action and make informed decisions :

   Personal Financial Planning Option
   Quarterly 401(k) Newsletter
   401(k) Plan Website
   Money@Work Website
   Targeted Mailings
   Electronic Bulletin Board Postings
   Optimizer / Estimator Tools



  Ease of use and linking with web based tools important in
  delivery of message
IBM 401(K) PLAN PARTICIPATION GROWTH


                        Participation Rate 1983 - 1999
          100
          90
          80
          70
Percent




          60
          50
          40
          30
          20
                1983   1985   1987   1989   1991   1993   1995   1997   1999
                                            Year
            IBM 401(k) PLAN PARTICIPATION &
          AVERAGE ACCOUNT BALANCE GROWTH


          100                                                                  100
          90                                                                   90
                                                                               80
          80
                                                                               70




                                                                                     Thousands
          70
Percent




                                                                               60
          60                                                                   50
          50                                                                   40
                                                                               30
          40
                                                                               20
          30                                                                   10
          20                                                                   0
                1983   1985   1987   1989   1991   1993   1995   1997   1999

                                            Year
IBM BUILDING BLOCKS OF FINANCIAL
SECURITY
                                                                      Financial
                                                                      Planning




                                                    Defined           Defined
                                                   Contribution      Contribution
                                                      Plan              Plan




                                Defined Benefit   Defined Benefit   Defined Benefit
                                     Plan              Plan              Plan




              Social Security   Social Security   Social Security   Social Security




   Personal     Personal           Personal          Personal          Personal
   Savings      Savings            Savings           Savings           Savings
AVERAGE 401(k) PLAN PARTICIPATION DATA


By Plan Size (number of participants)             Percent

       100   to     499                             74
       500   to   2,499                             68
     2,500   to   4,999                             67
     5,000   to   9,999                             68
    10,000   to   more                              64

                                         Age                Compensation
By Age and Compensation                 Percent               Percent

 (Age or $k)
   20 - 29                                50                   62
   30 - 39                                69                   72
   40 - 49                                73                   76
   50 - 59                                75
   60 - 64                                72
   65 - 69                                61
    50 - 74                                                    81
    75 - 100                                                   87
  AVERAGE 401(k) DEFERRAL RATES FOR NHCE


BY PLAN SIZE (number of participants)          NHCE

      100   to     499                          6.5
      500   to   2,499                          6.6
    2,500   to   4,999                          6.7
    5,000   to   9,999                          6.6
   10,000   to   more                           7.3

                                        AGE      COMPENSATION
BY AGE and COMPENSATION                 NHCE          NHCE

 (Age or $K)
    20 - 29                             5.8           5.8
    30 - 39                             6.5           6.4
    40 - 49                             6.8           7.1
    50 - 59                             8.0
    60 - 64                             8.9
    65 - 69                             8.8
    50 - 74                                           7.9
    75 - 100                                          7.9
TOP IDEAS GENERATED BY THE NATIONAL SUMMIT ON
RETIREMENT PLANS

7 of the top ten and 13 of the top 20 focused on the need for more education.

The top ten are :

    Educate about the benefits of starting to save early
    Educate people on the costs of retirement
    Encourage the use of payroll deductions
    Develop financial planning curriculum for high schools and colleges
    Provide simple, user friendly, easy to understand information on retirement
    savings
    Encourage portable models
    Educate employers on how to set up low cost plans (as part of a public awareness
    program)
    Develop an on-going, funded, public awareness program to create culture of
    savings and thrift
    Increase availability of payroll deductions and direct deposits for IRA's and/or
    other savings vehicles to encourage savings (that would not be accessible until
    retirement)
    Develop an education campaign that includes different messages targeted at
    different groups such as : people at risk, young people, low-income people, savers
    vs. non-savers, ethnic groups and high/low education levels
CURRENT ENVIRONMENT


STIMULUS

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 2)               ??
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 5)

INHIBITORS

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 2)               ??
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