Retirement

HIGHLIGHTS OF THE MASSACHUSETTS GENERAL HOSPITAL CASH BALANCE RETIREMENT PLAN

ELIGIBILITY

Your eligibility begins on the first of the month following 12 consecutive months of service with 1000 hours worked in that first 12 months if you are age 21 or older. If you are not yet age 21, your membership begins on the first day of the month immediately after your 21st birthday.

HOW THE PLAN WORKS

Each year if you work at least 1000 hours, MGH will credit your account with a contribution based on your age, annual pay and length of service.

You will receive minimum interest credits of 6.5% per calendar year.

Vesting will be complete when you have worked five calendar years with 1000 hours service in each of those five years. Vesting means ownership. If you leave employment with MGH, and you have five years of vesting service, then you may take your account in a lump sum or rollover. If your account balance is > than $15,000, you may take part in a lump sum, and leave $10,000 to fund an annuity at age 55 to 65. You may also leave your account in the trust account until later, or until retirement age.

If you transfer to any of the MGH or Partners HealthCare System affiliates, your account will stay in the trust account until you terminate employment with the Partners affiliate. Your account will earn 6.5% interest annually until the first of the month after you terminate employment.

CONTRIBUTION SCHEDULE

Your contributions grow with age and service, as outlined below:

Age Plus Years of Service Annual Allocation as a Percentage of Pay
Less than 30 5% of pay
30 to 39 6% of pay
40 to 44 7% of pay
45 to 49 8% of pay
50 to 54 9% of pay
55 to 59 10% of pay
60 to 64 11% of pay
65 to 69 12% of pay
70 to 74 13% of pay
75 to 79 14% of pay
80 or more 15% of pay
Plus .06% of pay over $18,606 in 2001 (this amount is indexed annually)

PAYMENT OPTIONS

<The MGH Cash Balance Plan is a type of defined benefit plan. This means that you have the choice when you leave employment to take your retirement account as a monthly pension (annuity), or you may take a partial lump sum/rollover and leave at least $10,000 to fund an annuity. You may choose any of the monthly annuities after age 55.

The monthly annuities are:

Single Life Annuity. You receive a monthly payment for your lifetime, but the pension stops at your death with no beneficiary benefit.

Joint and Survivor Annuity. You receive a pension for your lifetime, and your beneficiary, (usually a spouse), receives 50%, 66-2/3%, 75% or 100% of your monthly pension for his or her lifetime.

Certain and Continuous Annuity. With this payment method, you receive a reduced monthly benefit for your lifetime for 10, 15 or 20 years, but if you die before receiving all of the installments, the balance of the monthly payments not paid to you will be paid to your beneficiary.

Monthly installments. Rather than lifetime payments, you may choose an annuity for a limited time, i.e., for 10, 15, or 20 years during your retirement. This certain only pension stops after the 10, 15 or 20 years. During this time, if you die before receiving all of the installments, your beneficiary will receive the balance of the payments that were not paid to you.

OTHER PLAN FEATURES

Pre-Retirement Death Benefits

If you have completed at least five years of service (1000 hours worked at least in each calendar year), and die before payment of your retirement begins, the person you have named as your beneficiary will receive your retirement account. If you are married, your spouse is automatically your beneficiary unless your spouse has waived that right by giving written consent to your beneficiary designation, witnessed by a Notary Public or Plan representative.

This retirement plan is administered according to the terms of a formal plan document. This highlighted description of the plan does not contain all of the Plan provisions; especially break-in service rules, disability benefits, prior pension plan benefits, eligibility and contribution schedules for affiliate companies, ERISA rights, or features that affect few participants. If a discrepancy exists between this description, and the plan document, then the formal plan document will prevail.

For further information on your retirement account, please refer to the Summary Plan Description that you may obtain from your Human Resources or Benefits Office.

Contact: Benefits Office 617-726-8133