Main content

    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 clinical
    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
    These examples do not include benefits from Social Security, other employer plans or personal savings


    Contacts
    Kami Lloyd
    (916) 286-6680
    lloydk@sutterhealth.org

    Sutter Health Media Line
    (916) 286-6695 or (800) 428-7377