MGH employees who are vested in the MGH cash balance retirement plan have been notified by mail of a federal rule change that will affect the calculation of any lump-sum payment they receive from their cash balance plans.
When employees retire or resign from MGH, they have the option to take their cash balance in the form of a one-time, lump-sum payment. How this lump-sum payment is calculated will change after Sept. 30, 2009.
"No changes have been made to how the cash balance grows while you are employed at MGH, nor are there changes in how your pension is calculated at retirement," says Jeff Davis, senior vice president of Human Resources. "The only thing that will change is how a lump-sum payment is determined.The cash balance plan continues to be a very good retirement plan."
MGH Human Resources has set up a call center for employees to access if they have questions about the rule change and how it may affect their individual retirement plans. Benefits specialists are available Monday through Friday from 8 am to 6 pm at (800) 545-2957.
There also will be a series of information sessions throughout the summer, including the following during the week of June 8:
June 8: Yawkey Center 2-220
9 to 10 am
June 9: O'Keeffe Auditorium
10 to 11 am
June 10: Haber Auditorium
9:30 to 10:30 am
June 11: Haber Auditorium
2 to 3 pm
June 12: Haber Auditorium
9 to 10 am
Future meetings will be broadcast through the MGH daily e-mail announcements.