Where do I drop the Lombok.JAR file to get it to work with Intellij 12.4.6?

Trying to get lombok working with Intellij.   Plugin installed, Intellij says everything's hunky-dory - but no Lombok annotations are working.    Do I need to drop LOMBOK.JAR in the Java/bin directory, the Idea/bin directory, the Idea/lib directory..... ????

Any help is appreciated...