News
Sutter Health Invests in Employees
SACRAMENTO, Calif., March 3, 2008 – Sutter Health’s employee pension fund balance at the end of 2007 was more than $1.3 billion. The not-for-profit health care network’s diligent contributions over the last four years means it has continued to keep its promise to fully-fund its retirement plan for employees.
"Having a fully-funded pension plan is unusual these days, and it sets apart Sutter Health as an organization that values its employees and their futures," said Svend Ryge, treasurer and vice president of finance for Sutter Health. "We believe we have a duty to help care for our employees when they retire, so the retirement plan is one of our largest investments," said Ryge.
Sutter's year-end report follows the very first baby boomer applying for social security in 2007. The surge in retirement of workers born into the baby boomer generation is expected to severely tax the nation's fragile Social Security system. Media stories also have reported on companies defaulting on their pension obligations.
In Sutter's plan, employees elect to receive either the lump sum or traditional monthly payment option when hired. General examples of what a full-time employee hired on January 1, 2008 could earn if she worked until age 65 include the following:
Starting Pay | Years in the Plan at age 65 | Enhanced Cash Balance (Lump Sum) | Enhanced Traditional (Monthly Payment During Retirement) | |
| Employee Example – non clincial | ||||
| Age 30 New Hire (limited experience) | $38,000 | 35 | $452,269 | $6,397 |
| Age 40 New Hire (experienced) | $43,000 | 25 | $205,668 | $3,296 |
| Age 50 New Hire (experienced) | $43,000 | 15 | $69,221 | $1,336 |
| Employee Example – clinical | ||||
| Age 30 New Hire (limited experience) | $79,000 | 35 | $940,244 | $14,339 |
| Age 40 New Hire (experienced) | $94,000 | 25 | $449,601 | $8,177 |
| Age 50 New Hire (experienced) | $94,000 | 15 | $151,320 | $3,281 |
| Employee Example – professional, non-clinical | ||||
| Age 30 New Hire (limited experience) | $59,000 | 35 | $702,207 | $9,933 |
| Age 40 New Hire (experienced) | $69,000 | 25 | $330,028 | $5,457 |
| Age 50 New Hire (experienced) | $69,000 | 15 | $111,075 | $2,179 |
Contacts
Kami Lloyd
(916) 286-6680
lloydk@sutterhealth.org
Sutter Health Media Line
(916) 286-6695 or (800) 428-7377