Retirement
Pension Plan

Effective January 1, 1999, the defined benefit pension plans from each hospital merged into a single Health Alliance sponsored plan. Under the new plan, the five existing plan formulas and provisions were “grandfathered” for all participants of those plans as of December 31, 1998. This means that those prior participants will continue to accrue pension benefits under the same formula that was in place in their previous plan.

The University Hospital associates hired prior to January 1, 1997 who currently participate in PERS or the City of Cincinnati Retirement Plan, and all members of IUOE will continue to participate in those pension plans. You are not eligible to participate in the Health Alliance Plan. For information about the PERS plan, call 1-800-222-7377; for City of Cincinnati Retirement information, call 513-352-3227 and for IUOE pension information call 1-202-362-1000.

The Health Alliance pension plan formula will apply to:

• Current associates who were not eligible participants under any other pension plan as of December 31, 1998, once they meet the participation requirements of the plan
• New associates hired after January 1, 1999 who meet the participation requirements of the plan.

The bridging provisions that existed in the five Health Alliance plans are part of the new plan. This means that participating associates who transfer between Health Alliance service locations remain in their current pension plan formula without any change of benefits. Additionally, former associates who met the eligibility requirements and are rehired will continue to accrue pension benefits under the same plan formula in which they participated at the time of their termination of employment.

Who is Eligible
Generally, you are eligible to participate in a pension plan when you:

• Attain age 21
• Work 1,000 hours
• Complete one anniversary year of service.

Participation is automatic and does not require you to contribute to the plan (see General Plan Information section).

W-2
Every Health Alliance associate who is a participant in the pension plan will have Block 10 checked on their W-2 at year end. Marking this block on a W-2 indicates that you are a participant in a pension plan. It does not mean that you have earned a benefit from the plan. When this block is marked, the IRS prohibits you from having your contribution to an IRA qualify as a deduction for income tax purposes. Associates who would like to save for retirement on a pre-tax basis are encouraged to establish a Tax Deferred Retirement Plan.

General Plan Information
The Health Alliance plan is a defined benefit pension plan. This means that benefits are calculated using a benefit formula. The variables in the formula are a participant’s age at the time of benefit commencement, credited service earned, and a participant’s earnings average as defined by the plan. Benefits are earned (or vest) as soon as a participant completes five years of service in which at least 1,000 hours are worked per year.

Early retirement eligibility can be as early as age 55. Associates who want to apply for retirement should contact the Health Alliance Benefits Department and request a pension application packet. If you are vested and leave employment prior to eligibility for early retirement, you will receive your retirement benefit as a single lump sum payment (if the total value of your benefit is less than $5,000), or as a monthly annuity when you reach retirement age. You will receive notification of your benefit in the months following your termination. If a married, vested participant dies, survivor benefits may be available to a surviving spouse only.

To request a summary plan description for your plan or to receive answers to your pension questions, please call the Health Alliance Benefits Department at 513-585-6060. You can also reach us in GroupWise at the address “Alliance Benefits”.

Medical Insurance Continuation Upon Retirement
Upon retirement from the Health Alliance, associates who are age 55 or older with 20 or more years of service can continue coverage under the medical plan offered to active Health Alliance associates until the age of 65, or until eligible for Medicare, if sooner. Retirees taking advantage of this insurance benefit are responsible for 100% of the group rate. In order to qualify for retiree health insurance, you must:

• Begin receiving a pension benefit immediately following termination of employment (e.g., the pension benefit must begin on the 1st day of the month following the last day of employment at the Health Alliance)
• Be covered under the Plan at the time of retirement (for dependents to be covered, they must be covered by the Plan when you retire)
• Have completed 20 or more years of consecutive service at the Health Alliance
• Be under the age of 65 and not eligible for Medicare benefits.

Your dependents covered under the plan at the time of your retirement may also remain covered by the plan until the earliest of:

• The dependent no longer meets the eligibility requirements, as stated in the “Who Can Be Covered” section of the plan’s SPD
• The dependent reaches the age of 65 and/or becomes eligible for Medicare; or
• You (the retiree) reach age 65 and/or become eligible for Medicare.