Employees are covered by the defined benefit retirement plan provided by the Hospital, subject to plan eligibility. Employees with three or more years of service are vested in the retirement plan benefit. The plan consists of two benefit formulas for employees of the hospital hired prior to 2009 – the final average earnings formula and the cash balance formula. For employees of the hospital hired after 2009, the cash balance formula determines the benefit payable under the plan. 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.
When you save in this plan, St. Clair Hospital will match a portion of your contributions up to 2% of your eligible pay.