Surely you can’t be reading that right, right? A pension plan in 2020? Maybe you’ve heard of a pension plan from your parents or grandparents, but those are a thing of the past! Or are they?
Make no mistake, the pension plan is still alive and well at Northside Hospital!
Northside is the only area hospital that offers a pension plan. As long as you work with us, we save money on your behalf to be accessed during retirement!
With so few companies still offering pensions, many younger workers don’t understand how pension plans work, since they’ve never been eligible for one. Free money sounds great, but… what’s the catch?
There’s no catch! Northside saves money for you throughout your employment with us for you to access in retirement. We fund the pension benefit at no cost to you — meaning you’re earning extra money for your future just by coming to work!
(By the way, this program is separate from and in addition to our generous 403(b) Retirement Plan – similar to the more common 401(k) plans – in which employees set aside money from their paychecks pre-tax and Northside funds additional contributions to your account to boost your retirement savings!)
Breaking down the pension plan
What is the pension plan?
The pension plan is a defined benefit retirement plan. For this type of plan, Northside does all the work, including funding and managing your pension benefit. When you retire, you will start receiving monthly payments based on your average salary during your employment and how long you worked for Northside. That means that the longer you work for Northside, the more you earn in the plan. After five years of service, you become fully vested in the plan. In other words, you become eligible for payments upon retirement after 5 years of eligible employment. If you leave Northside before becoming vested, you’ll forfeit any unvested pension.
How does it work?
Meet Abby, a 35-year-old NICU nurse making $55,000 per year.
In addition to her salary, Abby accrues about 9%* of her salary toward pension benefits every year. This amount varies each year and is ultimately based on her salary and years worked at Northside. If she stays at Northside and retires at age 65, she’ll have earned $40,000 in pension income a year for the rest of her life — a pension worth over $500,000 in today’s dollars!*
* Assumes 3.50% annual pay increases, and that Abby works until 65.
It’s that simple! By working at Northside, you are earning extra money that’s waiting for you when you retire after 5 years of employment. Stay longer, earn more! Get a promotion, earn some more! As the only hospital in the Atlanta area with a pension plan, Northside is clearly the smart choice!