Dear Saint Peter’s Healthcare System Retirement Plan Participant:
I am pleased that Saint Peter’s is able to offer our employees a new retirement plan that will take effect on January 1, 2013. The new Defined Contribution Plan (the “Plan”) will enable our employees to invest their retirement dollars in a variety of mutual fund and annuity product options of their choosing. The Plan offers all eligible employees (both those who have accrued benefits under the Defined Benefit Plan and those who have never participated in the Defined Benefit Plan) a basic contribution, paid entirely by Saint Peter’s, of 3% of
compensation and portability of their retirement savings when they leave Saint Peter’s.
In addition, the new Plan will provide enhanced retirement benefits, ranging from an additional 1% to 3% of compensation, for those eligible
employees who, as of December 31, 2012, have begun participating in the Defined Benefit Plan, attained age 35 and completed at least five years of service with Saint Peter’s. I am especially proud of this feature, which is designed to make it easier for older employees with longstanding service to Saint Peter’s to transition from our existing Defined Benefit Plan to the Defined Contribution Plan.
Please note that any employee currently earning benefits under the Defined Benefit Plan will continue to earn those benefits under that plan through December 31, 2012. Those benefits will remain, but no new benefits will accrue.
Younger workers will gain flexibility and control over their retirement dollars.
Our employees displayed great patience and understanding when the new retirement plan was explained to them in a series of group meetings held in late July and early August. They asked tough but fair questions, listened carefully to every explanation, and conducted themselves with open minds throughout the entire public-meeting process.
I thank each and every one of you for your willingness to listen, your inquiries and your earnest contributions. I believe the dialogue that was established during those meetings was immensely beneficial to everyone, from our front-line staff to senior administration.
It is heartening to know that these complicated issues can be aired in a public forum.
With those thoughts in mind, Saint Peter’s, along with the resources provided by TIAA-CREF – the company that is managing the Defined Contribution Plan – and our Human Resources Department, is providing you with one more aid (a series of Web pages) to help you make the best decisions related to your retirement planning. Please read further on this Web site.
The information on this site is also general in nature. You may contact the Saint Peter’s Human Resources Department for more specific information about your individual benefit or to schedule an individual informational session with our HR personnel.
I thank you once more for your understanding and your service to Saint Peter’s.
Ronald C. Rak, JD
President and CEO
Saint Peter’s Healthcare System
© 2013 Saint Peter’s Healthcare System254 Easton Avenue, New Brunswick, NJ 08901