Employees are covered by the defined benefit retirement plan provided by the Hospital, subject to plan eligibility. Employees with five or more years of service are vested in the retirement plan benefits, and the benefit is based on years of service and final average earnings. This plan is funded entirely by the Hospital and benefits are insured by the Pension Benefit Guaranty Corporation. Upon vesting, a future pension benefit is guaranteed (either in the form of a lump sum distribution or monthly annuity) and is not subject to the volatility of investments in the market.
403(b) Tax Sheltered Savings Plan
A 403(b) Tax Sheltered Savings Plan allows employees to save money for their retirement, in addition to the pension benefit provided by the Hospital. Employees who choose to participate in the Plan receive immediate tax benefits (contributions are deducted from gross pay prior to taxes) and can look forward to potentially rewarding long-term returns through tax-deferred earnings. Investment options include mutual funds with various levels of risk and a guaranteed fixed income account.