Sutter Health Puts $180 Million into Employee Pension Plan
$1.2 Billion Invested in Retirement Plan Since 2008
At a time when many pension plans continue to decline in value or are woefully underfunded, Sutter Health invested $180 million into its pension plan for employees. The investment keeps the plan fully-funded, which means Sutter Health’s pension plan has the financial stability to make current and future benefits payments to pensioners.
“Sutter Health is an employer of choice with 47,000 people who count on us,” said Sutter Health President and CEO Pat Fry. “As employees plan their golden years, they and their loved ones look to us for financial stability. This latest investment reflects our commitment to keep the Sutter Health Retirement Plan fully-funded for our hard-working employees.”
According to the Wall Street Journal’s CFO Report, as 2012 came to a close, many of the largest companies in the U.S. had pension plans that suffered losses and were significantly underfunded in 2012. The Wall Street Journal’s story reports that pension plans for 429 of the nation’s top firms were only 75 percent funded.
Over the past five years, Sutter Health’s board has approved $1.2 billion in investments to keep the employee retirement plan fully-funded.
“We’re very careful about how our employees’ retirement funds are managed,” said Gerry Brinton, immediate past chair of the Sutter Health Board of Directors. “Once our board puts money into the pension plan for employees—that’s where the funds remain. We don’t dip into those funds to cover operational costs or other expenses.”
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Within Sutter Health, the pension is a valuable piece of total employee compensation. For example, under the traditional pension design a full-time nurse who retires in 2024 at age 65 with 22 years of service can expect to receive about $7,000 per month or $84,000 per year at retirement from the Sutter Health pension plan. This doesn’t include other possible income from investment in a 403(b) plan or Social Security.
“Not only are we committed to providing market-competitive salaries and excellent benefits, investments like this ensure we’re able to provide for employees well after they’ve headed into retirement,” Brinton continued.