If you leave Kaiser before completing 5 years of service, you’ll be giving up a lot of money.
As SEIU-UHW members, we’re entitled to:
- A pension (i.e. guaranteed income in retirement)
- Matching 401(k)/403(b) contributions, up to 1.25% of our salaries
- Performance-based 401(k)/403(b) contributions (1% of our salaries)
There is, however, a vesting period associated with each of these retirement benefits. In short, you’re entitled to them after you complete the required years of service.
Pension Vesting Schedule
Our pension benefit follows a “cliff” vesting schedule, which means we secure it after we complete the required years of service (5). If we leave Kaiser before completing 5 years of service (e.g., at 4.9 years of service), we forfeit our entire pension. See the end of this article for the contractual definition of 1 year of service.
998 2. Vesting and Years of Service Defined.
An Employee is vested after five (5) years of service.
401(k)/403(b) Employer Contribution Vesting Schedule
Our 401(k)/403(b) employer contribution benefit follows a “graded” vesting schedule, which means we secure it incrementally (20% per year of service). Even though Kaiser contributes to our 401(k)/403(b) retirement accounts, and even though those contributions appear in our accounts, the money isn’t automatically ours.
Instead, we’re entitled to 20% of Kaiser’s 401(k)/403(b) contributions after 1 year, 40% after 2 years, 60% after 3 years, and so on. So, for example, if we leave Kaiser just before completing 3 years of service, we’re entitled to just 40% of Kaiser’s 401(k)/403(b) contributions (60% will be returned to Kaiser). See the end of this article for the contractual definition of 1 year of service.
The Employer contributions will be vested in increments of 20 percent per year of employment, with participants becoming fully vested after they have completed five years of employment.
Year of Service Defined
One year of service is defined as any calendar year in which we receive pay for 1,800 or more hours. If we receive pay for less than 1,800 hours, but more than 1,000 hours, we should be credited with a proportional amount of service.
Note: Non-benefited employees accrue service credit but are not eligible for the pension benefit until they complete 1 year in a regular, benefited position.
1000 a.) Full Credited Service for Years Spent as Full-Time Employees.
Any calendar year in which an Employee receives pay for one thousand eight hundred (1,800) or more hours of employment with the Medical Care Program is a year of Credited Service.