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Additional Questions from Employees
Why am I receiving a Notice of Intent to Terminate (NOIT)?
As part of our long-term retirement planning strategy, The Board of Directors of Chattanooga-Hamilton County Hospital Authority (the "Authority"), as the Plan Administrator, has decided we will be winding down operations of the Chattanooga-Hamilton County Hospital Authority Pension Retirement Plan and Trust (the "Plan").
The Notice of Intent to Terminate (NOIT) is to inform anyone who is entitled to a pension benefit under the terms of the Plan of their decision to terminate the Plan. The NOIT is the first of many communications that you will receive about the Plan termination.
Will my benefit change due to the Plan termination?
The Plan termination does NOT change the benefit that you have earned or the monthly benefit you are receiving under the Plan. The Plan’s rules governing benefit commencement also will not change. However, the Plan termination may impact the administration of the plan.
What will change as a result of the Plan termination?
Current retirees: You will continue to receive your monthly benefit in accordance with the terms of the form of annuity you elected at your retirement. At the end of the Plan termination process, you will be notified in writing of the name and address of the newly selected, highly rated insurer who will provide your annuity payments moving forward. Your payments will continue as scheduled and no action is required.
Actively working employees and terminated former employees: The benefit payable to you, as well as the existing Plan rules around benefit commencement, will not change. However, as a result of the termination of the Plan, you have the opportunity to make a one-time election to adjust your benefit during the Plan’s distribution window during the first quarter of the calendar year, beginning January 2026. Details of this election opportunity will be provided in the coming months.
What are my election options?
Current retirees: If you are currently receiving a monthly distribution payment from the Plan, there will be no change to your benefit or payment schedule. You will continue to receive your monthly payments as usual – no action is required on your part.
You will have the opportunity to change or update your address and/or bank account information if you wish to make any changes.
Actively working employees: You have three election options available to you. More information will be provided in the coming months.
- You will have the option to elect a lump sum distribution of your earned benefit.
- You can roll your benefit into Erlanger’s defined contribution plan or another retirement plan on a tax-deferred basis.
- You also will have the option to elect a monthly annuity payment.
- You can choose to defer your election to a later date.
Terminated former employees: You have three election options available to you. More information will be provided in the coming months.
- You will have the option to elect a lump sum depending on your preferences and eligibility, beginning July 1, 2025.
- You also will have the option to elect a monthly annuity payment, depending on your preferences and eligibility, beginning July 1, 2025.
- You can choose to defer your election to a later date.
What is the Plan termination process and what are the important dates that I should know about?
The Plan termination date is December 31, 2025.
Before the termination date, you will receive a Notice of Plan Benefits (NOPB) outlining the specific benefits that you are entitled to under the Plan. This notice is scheduled to be sent in November 2025.
You will receive a Benefit Election Package in or around January 2026 where you will elect how to receive your Plan benefit. All distribution options will be explained in your Benefit Election Package.
The Distribution Date (payout date) is expected to occur in April 2026. However, the actual payout could be earlier or later depending upon your election choice and other administrative factors.
On the Distribution Date, all ongoing benefit payments will be transferred to an insurance company and all immediate single sum payments will be distributed.
As of the expected payout date, the Plan is fully funded, meaning you will receive 100% of the benefit you’ve earned. Once all payments and benefit obligations have been transferred, the Plan’s operations will end.
Is my pension benefit being terminated?
No. Your pension benefit is protected by law and cannot be taken away, meaning you will receive 100% of the benefit you’ve earned. If you are receiving a monthly payment now, you will continue to receive that benefit in the form you have chosen. If you have not yet commenced your benefit, you will have an opportunity to choose how to receive the benefit that you have earned.
Will I lose the money I put into the Plan?
No, you will receive 100% of the benefit you’ve earned. You may also sign up for your free session with a financial adviser from SageView.
What if I don’t know what election I want to take?
Current retirees: If you are currently receiving a monthly distribution payment from the Plan, there will be no change to your benefit or payment schedule and no action is required on your part.
Actively working employees: You can choose to defer your election to a later date. You may also sign up for your free session with a financial adviser from SageView to discuss your options with respect to your benefit in the Plan.
Terminated former employees: You can choose to defer your election to a later date.
I am a retiree with a direct deposit, will my payment method be changed?
No, the method that you receive your monthly payment will not change. There will be no change to your benefit or payment schedule, and you will continue to receive your monthly payments as usual. No action is required on your part.
Your payment information will be provided to the selected annuity provider, including deductions and payment method. You will have the opportunity to change or update your address and/or bank account information if you wish to make any changes.
How is my benefit protected once it is transferred to an insurance company?
Once the benefit payments and obligations are transferred, the insurance company will be responsible for paying your benefit.
As an additional financial backstop, every state (plus D.C. and Puerto Rico) has an “insurance guarantee association.” The purpose of an insurance guarantee association is to protect policyholders, up to specified limits, in the event the insurance company is financially unable to meet its obligations.
Who do I contact if I have questions?
If you have any questions regarding the Plan termination, your benefits under the Plan, or updating your personal information, please contact the Empower Call Center at 800-338-4015, Reference Contract # 17470.