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Maine’s 2nd Largest Hospital Group Dumping Pension Plans

Maine’s 2nd Largest Hospital Group Dumping Pension Plans

Photo: 560 WGAN Newsradio


Maine’s Northern Light Health is doing away with pension benefits for its 6,000 employees and will instead offer 403(b) retirement plans.

The Bangor Daily News reports the announcement Thursday comes after Northern Light has experienced credit rating downgrades this year and faces a $100 million deficit.

The change will take place in July of next year.

Pension plans are funded by an employer and guarantee payments for life to employees, while 403(b) plans require an employee to make contribution while the employer can offer a match percentage.

The Daily News reports employees at Eastern Maine Medical Center, Acadia Hospital, Northern Light’s home offices and some off-site locations are affected by the change.

Northern Light is the largest health care system north of Portland. The hospital group’s management says they’ll save money with the change.

Employees 55 or older who have worked at Northern Light for at least five years will be able to keep their pensions.

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