Friday is the deadline for participants in Erlanger’s pension fund to postmark election packets to either start receiving their benefits in April or defer to retirement age.
There are 1,669 active or vested participants in Erlanger’s pension, an old-style defined benefit plan that the Chattanooga-Hamilton County Hospital Authority, formerly known as Erlanger Health System, froze in 2009 in favor of a defined contribution plan, similar to a 401(k) plan. Employees or retirees hired after that change are not affected.
The board that oversees Erlanger’s pension closed the plan Dec. 31 and began transferring it to an annuity contract with an insurer, according to board Chair Ken Conner.
The deadline offers a limited opportunity to begin payments early before the transition occurs, Conner said during the board’s February meeting.