do nurses get employer sponsored pensionplan?

Dixielee, BSN, RN · Dec 3, 2011

I've never seen one in any hospital I have ever been in. They may match 4-6% in 401K but that is the best I've seen. Gonna be a bunch of broke retired nurses, me included!

PMFB-RN, RN · Dec 3, 2011

Yes some hospitals offer a defined benefit pension. My hospital offers 1% of the average of your highest three year pay for each year you worked for them. We pay nothing for this pension. The last hospital announced the dropping of their pension plan 3 days after obtaining Magnet certification.

FLArn · Dec 3, 2011

We have a 403B plan that we pay into and our company has also a profit sharing plan that is 100% employer contribution. The profit sharing plan is optional, you have to sign up for it and believe or not some don't!

MN-Nurse, ASN, RN · Dec 3, 2011

Pardon my ignorance but about a decade ago, as far as i know the hospitals are not offering employer sponsored pension plan to nurses. Yeah, you can participate in 401K or the IRA but it's the employee who has to make contributions to his/her retirement.
I just went for an interview with an insurance company and i was surprised to hear that they are offering a pension plan where they make 100% of the contibutions for the employees retirement. Is this the norm now where all/most nurses get this type of pension plan? Do you have it in hospitals or is this only common in the managed care industry or non-hospital setting?

They are rare, but they exist. My union contract has one but the hospitals have been trying to get rid of it every time a contract is renewed.

evolvingrn, BSN, RN · Dec 3, 2011

we have a 403 b and a pension plan. 3 years to be vested for the 403 and five years to be vested for the pension. i imagine it is facility specific

nicurn001 · Dec 3, 2011

We have a 403B plan that we pay into and our company has also a profit sharing plan that is 100% employer contribution. The profit sharing plan is optional, you have to sign up for it and believe or not some don't!

Maybe they learned from the Enron employee's, when you invest in the company you work for , you run the risk that if they go out of business you lose your investment as well as your job . Although profit sharing sounds good , it does have this major downside .

FLArn · Dec 4, 2011

How is there a downside? I contribute nothing, the company puts in 100%. I am free to invest my money however I please. The profit sharing is extra for me. I am not counting it in my retirement plan. When I get ready to retire, it is extra if I get it and no loss if I don't.

~Mi Vida Loca~RN, ASN, RN · Dec 4, 2011

Ours is like some others mentioned where the employers will match up to 4%

MrChicagoRN, RN · Dec 4, 2011

In addition to the 401K/403B, Every hospital I've worked at has also had non-contributory pension plans.

All non-profits, all non-union. All fully vested.

RubyRN,CHPN · Dec 4, 2011

I once worked for a company with a Taft-Harltley Union plan that contributed a specific dollar amt. for each hour we worked and there were vesting years that followed. I stayed until I was vested 100 percent with no out of pocked contribution ever made by myself. Unfortunately, that retirement will not survive me when I pass. I now work for a company with a 403b matching plan with a standard match in the 4-6 percent range which I can pass my proceeds on to my survivors.

brandy1017, ASN, RN · Dec 4, 2011

We have one but they have decreased the contribution amount to 5% max, used to be 8% max I believe. They have grandfathered older workers who have a choice between a real pension vs cash balance, but who knows if they don't get rid of it in the future. There is no guarantee these days, they can easily cancel it or change it and then you will get little or nothing, only what the govt bailout offers if you are lucky.

You are better off putting money into a Roth IRA up to the max after you get the company match if any for your 403B. Also the Roth can function as a defacto ER savings; whereas the 403b/401K you get a penalty 10% federal, 10% state plus taxed so lucky if you have 50% left over if you have to withdraw it in an emergency.

Capital gains tax is so low now that you are better off using a regular no loads index fund after you maxed out your Roth IRA. I think the tax rate would be less than 403b.