| Can I cash out my
PTO at any time during the year? If I may, does my PTO cash out count toward my
pensionable earnings? |
Practices with regard to PTO cash out differ by location. Check with your local
Human Resources representative to find out if your location allows you to cash
out your PTO at any time during the year.
Effective January 1, 2002, cash-outs are not included
as pensionable earnings, however, cash outs will be
included in compensation for purposes of calculating
the employer matching contribution in the Retirement
Savings Plan.
|
| How is the Pension
Plan benefit determined? |
1.0% of final average compensation (up to one-half of the
five-year average of the Social Security wage base) multiplied by benefit service
earned after December 31, 2001
|
|
Plus
|
1.5% of final average compensation (over one-half of the
five-year average of the Social Security wage base) multiplied by benefit service
(to an adjusted maximum of 35 years) earned after December 31, 2001
|
|
Plus
|
Your accrued pension benefit as of December 31, 2001, under the current
plan, multiplied by a pay adjustment factor
|
|
| Is there a limit
to the number of years of benefit service counted in the formula? |
The pension plan formula has two parts:
Part One: 1% of final average compensation (up to one-half of the five-year
average of the Social Security wage base) multiplied by benefit service earned
after December 31, 2002. There is no limit to the number of years of benefit
service counted in this part of the formula.
Part Two: 1.5% of final average compensation (over one-half of the five-year
average of the Social Security wage base) multiplied by benefit service (to a
maximum of 35 years) earned after December 31, 2001. Benefit service counted
in this part of the formula is limited to 35 years.
|
| Is the same definition
of compensation used for the pension plan and employer matching contribution? |
No. See compensation. |
| Are referral bonuses
and sign on bonuses included in compensation? |
Yes. See compensation. |
| Does compensation
include incentive pay or productivity pay? |
Yes. See compensation. |
| Can you explain the
Social Security wage base and how it affects my benefit amount? |
The Social Security wage base is an amount
established by the IRS on which Social Security taxes are paid by both you and
Trinity Health. The Social Security wage base may be adjusted from year to year.
Social Security retirement benefits will not be based on any pay above this limit.
Trinity Health's Pension Plan takes into account the Social
Security wage base, so that when Social Security and the Pension
Plan benefit are combined, employees with the same years of
service will receive closer to the same percentage of replacement
income.
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