How the Plan Works

Overview | Eligibility | How the Plan Works | Benefit Calculations | Payment Options | Administrative Details

The Pension Plan provides you with a monthly income for life at retirement. The benefit is determined by a formula that uses your compensation and years of benefit service. The Pension Plan is a defined benefit retirement plan that, when supplemented through participation in the Retirement Savings Plan and Social Security benefits, will provide you with income during retirement.

The Trinity Health Pension Plan accounts for any benefit already earned through your employment at Holy Cross, Mercy and Trinity Health, so the benefits you have earned to date are not lost . These benefits are protected by law and will be updated with future increases in compensation.

With the Pension Plan, Trinity Health assumes the investment risk, not you. There are no investment choices or per-pay-period contributions to make and you automatically receive a lifetime benefit on your normal retirement date if you meet the five-year vesting service requirement.

Calculating Pension Benefits

Your benefit under the Plan is based on your age, compensation and your years of benefit service.
The Pension Plan formula is:

1.0% x final average compensation (up to ½ of the 5-year average of the Social Security wage base) multiplied by benefit service earned after 2001

Plus

1.5% x final average compensation (over the ½ of the 5-year average of the Social Security wage base) multiplied by benefit service (to a maximum of 35 years) earned after 2001

Plus

Your accrued benefit as of December 31, 2001 under the former pension plan, adjusted for future compensation increases.

See examples of Benefit Calculations:
Normal Retirement (age 65)
Early Retirement (age 55 or older with 5 years of vesting service)

Pension benefits earned prior to Jan. 1, 2002 with Holy Cross, Mercy, or Trinity Health, are adjusted for future compensation increases and added to your pension benefit accrued after Jan.1, 2002.

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Your Employer Match Contributions

PLEASE NOTE: THE 403(b)/401(k) EMPLOYER MATCHING CONTRIBUTIONS HAVE BEEN TEMPORARILY SUSPENDED EFFECTIVE JULY 1, 2009.
CLICK HERE TO OBTAIN IMPORTANT INFORMATION REGARDING THE TEMPORARY SUSPENSION.

If you contribute to the 403(b) Retirement Savings Plan, Trinity Health matches your contributions. The Pension Plan Match will be credited quarterly through June 30, 2009 and will continue to earn a fixed rate of interest. Effective July 1, 2009, your employer matching contributions will be allocated quarterly in accordance to your investment elections within the 403(b) Plan.

The Pension Plan Match Contribution Account earns interest each year at a 5-year U.S. Treasury Constant Maturity rate for November of the preceding Plan Year. When you meet the vesting service requirement, you will have access to the 403(b) employer matching contributions when you retire or terminate your employment with Trinity Health.

The 403(b) Match Contribution Account is subject to the earnings and losses associated with the investment fund(s) the contributions are invested.

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Receiving Pension Benefits

You are vested in your pension benefit after you have been credited with five or more years of vesting service or attained age 65 while employed at Trinity Health or a Member Organization. Once vested, your benefit is paid to you upon reaching retirement age or at termination.

When you are vested and have reached retirement age, you may begin receiving your benefit effective the first day of the month coinciding with or following your retirement date.

Should you return to work at Trinity Health after you have begun receiving your pension benefits, you may be subject to phased retirement restrictions on your pension payments.

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Beneficiary Information

You may elect a beneficiary of your choice. However, if you are married, your beneficiary is automatically your spouse. You may name someone other than your spouse as your beneficiary, but your spouse must give a written, notarized consent to the naming of a different beneficiary.

To change your beneficiary for your Pension Plan benefit, request a Designation of Beneficiary Form (RP-20) from your local Retirement Program representative in Human Resources.

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