Important Update on Kaiser Pension Plans

March 16, 2009 – These are tough economic times for all of us. And the value of Kaiser Permanente’s pension plans, like most personal and corporate assets, has declined in recent months. We’ve worked hard to minimize this decline, maintain sound funding levels and ensure the future of our pensions.

To that end, Kaiser Permanente and the Coalition of Kaiser Permanente Unions have reached an agreement to protect KP pension plans, in the interest of KP employees.

Under the agreement, Kaiser Permanente will change the way lump-sum pension payments are calculated, consistent with federal law. This change may reduce the lump-sum payment for employees who retire effective January 1, 2010. However, KP is enhancing another pension plan option that offers guaranteed, monthly retirement payments, for you and your spouse or partner, for life.

We are adopting these changes in order to safeguard the long-term security and financial health of our pension plans, preserve the full, lump-sum payment option for future retirees, and align our plans with new government-recommended rates. As a result, Kaiser Permanente employees will continue to enjoy the kind of strong, traditional pension plans that most employers no longer provide.

Read full details of plan changes