Sutter Health Makes $400M Investment Into Its Retirement Plan
Sutter Health has announced that it contributed $400 million last month to keep its pension plan fully funded for about 45,000 employees, the San Francisco Business Times reports.
About the Contribution
The latest contribution follows Sutter Health's $120 million pension investment in 2010 and its $500 million investment in 2008.
Sutter Health President and CEO Pat Fry said, "At a time when companies are downsizing or eliminating employee pensions, Sutter Health has made funding our pension a top priority" (Rauber, San Francisco Business Times, 1/5).
After the health system made its most recent contribution, Standard & Poor's raised Sutter Health's credit rating to AA- (Smith, Sacramento Bee, 1/6).
Labor Union Official's Response
Chuck Idelson -- a spokesperson for the California Nurses Association -- said that Sutter Health's pension plan "remains severely inadequate."
He said some retired RNs receive less than $500 monthly in retirement pay, while the top 20 retired Sutter Health executives collectively received about $20 million in 2009.
However, Sutter Health's statement noted that a 52-year-old nurse who is employed full time over the next 13 years could receive $7,000 per month in retirement income (San Francisco Business Times, 1/5).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.