| Plan 1: The
Retirement Plan |
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Corporate paid |
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Eligible on first anniversary of employment (if a minimum
of 1,000 hours is worked during the first anniversary year) |
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- A defined benefit plan
- 100% vested after five years of service
- Death benefits to designated beneficiary or beneficiaries, if vested
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Retirement: |
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- Early Retirement (at age 55 with a minimum of 15 years
of service) provides actuarially reduced pension payments
- Full Early Retirement (at age 60 with a minimum of 15
years of service) provides pension payments without actuarial
reduction
- Normal Retirement at age 65 or later
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Retirement income is based on: |
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- Highest Average Compensation (HAC):
36 highest paid consecutive months over entire service period
(Base pay and annual incentive bonus)
- Pension Service: 1,000 Hours
- Credited Service:
Each calendar year (beginning at date of hire) in which compensated for 2,000 hours; proportional
credited service is granted for years in which compensation is les than 2,000 (actual compensated hours divided by 2,000)
- Benefit = 2% of HAC per year during first 20 years of
credited service and 1% per year thereafter
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| Example - Normal Retirement Benefit (Age
65): |
| Physician works 30 years at 100% schedule: |
| Monthly HAC |
$15,000 |
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| Credited Service: |
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20 years at 2%
10 years at 1%
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x 50% |
| Monthly Benefit at Age 65 |
$ 7,500 |
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Payment Options: |
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- Life annuity, joint & survivor annuity, period certain, or installments
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