How does the Baptist Pension Plan work?

How much will I have?

Baptist Health’s Defined Benefit Pension Plan is a retirement program funded entirely by the hospital for eligible employees.  You are eligible once you attain age 21 and have completed one year of service.  You will  receive an annual statement reflecting projected retirement values.  A Summary Plan Description is available in Personnel, which provides details about the plan. You can estimate your benefits using our online calculator.

Most Frequently Asked Questions:

When am I vested?

You must work at least 1,000 hours per year for that year to count as a year of “credited service” for retirement.  After you work 5 years of 1,000 hours, you are vested.  Credited Service is calculated from actual hours worked each year.
What factors are considered in determining my retirement benefit?
Three factors:  Years of service of 1,000 hours or more; age; and salary.  The salary will be determined by the 5 highest consecutive years of earnings within the last 10 years of employment.

What is a normal retirement date (NRD)?
Age 65.

What is eligibility for early retirement?
You must work 10 years with 1,000 hours per year worked and be 55 years old.

How much would retiring at age 55 instead of 65 reduce my pension?
Your monthly pension would reduce by 50%.

If I am vested and terminate from BAPTIST HEALTH, can I be paid a lump sum for retirement?
Only if you are vested and have less than $5,000 accrued in the pension plan.  If you have more than $5,000, you cannot start your monthly pension until retirement age.  Any lump sum pay out is taxable, unless you request a rollover to an IRA or another qualified plan.  If you collect a lump sum payout, you erase the years of service to BAPTIST HEALTH.  If you are re-hired, your years of service would start over, unless repayment of distribution . . . there are no lump sum payouts over the amount of $5,000.

If I retire at 55 or older and have my 10 years of credited service, can I continue my health and dental insurance?
Yes, at the full rate of the insurance cost.  The rate will be the same as COBRA rates.  You can keep it as long as you want.  You will set up a monthly payment with Personnel.  You can keep health, dental and vision benefits.
Effective January 1, 1989, the guidelines changed to require 5 years of “credited service” instead of 10 years of “credited service” in order to be vested.

Before 1983, you had to contribute to be eligible for retirement benefits.  If your retirement account was paid to you or you did not contribute, the years did not count towards your retirement.  Your retirement “credit years” would begin 1/1/83.