The new plan is not as generous as the current Pension Plan, but to somewhat bridge the gap for older employees, the Hospital will increase its contribution on a sliding scale based on the age of the employee on January 1, 2013. The details are covered in the presentation slides presented to employees at meetings in August, provided here.
Current employees will cease vesting in the current Pension Plan on January 1, 2013, but will receive benefits from both the Pension Plan and the new DC plan upon retirement. The Hospital will continue to maintain the current plan, though of course as a "church plan" -- not covered by ERISA protections, and not insured by PBGC or anyone else. The Hospital has presented the following information at meetings with Pension Plan participants:
- SPUH Board of Trustees intends to fully fund the Plan over the next 10 years.
- There will be no reduction in vested benefits.
- Current assets are sufficient to pay benefits for the next 30 years.
- Plan assets can only be used to pay benefits and plan administrative expenses.
- The Plan will continue to be governed by the trust document.
- No changes will be made to the trust document that will negatively impact vested benefits or Plan assets.
- Plan participants will receive an annual summary similar to what is issued under ERISA.
- All rebates from the Pension Benefit Guaranty Corporation will be used to fund the Plan.