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Does your residency program offer retirement matching?

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  • Does your residency program offer retirement matching?

    I'm a PGY1 resident and at my program the University does not offer any matching for retirement for residents. However, for ALL other employees of the hospital (nurses, PT, OT, attendings, staff, etc) they offer a 2:1 match.

     

    I was wanting to speak with GME about this but I wanted to present data showing how many programs do and do not offer matching for residents. If you could just comment on what sort of matching your program offers, that would be great!

     

    Also, is it legal for the university to exclude residents from the same retirement options that they offer to all other employees? I thought companies had to make retirement options available open to ALL of their employees and can not exclude anyone... Is this correct?

     

    Thanks

  • #2
    My wife is PGY3 in a community based residency program. During the first year residents are not eligible for a retirement plan. Starting with the second year the program puts 3% of her salary in her 403b, no matter if she puts some money in it or not. So over period of 2 years they should put about $3K in it.

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    • #3




      I’m a PGY1 resident and at my program the University does not offer any matching for retirement for residents. However, for ALL other employees of the hospital (nurses, PT, OT, attendings, staff, etc) they offer a 2:1 match.

       

      I was wanting to speak with GME about this but I wanted to present data showing how many programs do and do not offer matching for residents. If you could just comment on what sort of matching your program offers, that would be great!

       

      Also, is it legal for the university to exclude residents from the same retirement options that they offer to all other employees? I thought companies had to make retirement options available open to ALL of their employees and can not exclude anyone… Is this correct?

       

      Thanks
      Click to expand...


      - mine didnt.

      - legal, yes. you are offered a retirement plan.

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      • #4
        Most of the programs out there do not offer a match, however they offer retirement plans. Not illegal not to offer a match. You can gently try to lobby for it through the GME office but likely it won't go anywhere since the money is ultimately coming from the university and residents have little leverage. The matching amounts are usually so small anyway that you will be better off spending your time moonlighting in later years thus maxing out whatever 403b or such plans they offer you and maybe even starting your solo 401k depending on your gig. It sucks to be a resident.

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        • #5
          Mine didn't offer a match. Honestly, I'd bet a vast majority don't offer a match.

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          • #6
            totally legal to not offer a match to residents. my wife's residency offered a match but you weren't vested until 4 years so if you're on a traditional 3-year residency, it doesn't really matter that they don't match as you're not getting the money either way. just contribute as much as you can

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            • #7
              They offer a Retirement Income Pension Plan in place of SS. 5.5% of your income is a mandatory contribution. Their contribution vests after 5 years. If you aren't there for 5 years they give your contribution back. Of course, most residents (save NSG) aren't there for 5 years because anyone staying for fellowship is an employee of the other hospital.I'm assuming this is by design. We make it because he did his intern year there.

              There is also a supplemental retirement program (403b and 457). After 1 year, the hospital will match up to 6%. Vesting is on a 6 year schedule--20% a year after your first year.

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              • #8
                Mine did not.  I suspect it is very rare to find one that matches for residents.

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                • #9
                  No match. Residency programs are funded by SS. And you match into them. They have no incentive to raise salaries or give benefits if other programs are not. Nobody chooses their residency on the basis of retirement. If I were looking to match into residency now (and thank god im not) I would LOVE a program with a ROTH 403B (even with no match). Residency is the lowest tax bracket you’ll ever be in again your entire life, and that includes retirement. The chance to pay taxes at that rate and have it grow tax free forever would be awesome.

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                  • #10
                    Univ of Michigan - unionized residency -   Back in the day, we negotiated this very specific issue.   After a protracted negotiation period that took the vast majority of my third year, we gave up our $2 medication copay benefit and got a set % of salary contribution.  We didn't get years of service counted unfortunately like we wanted for our career pathed residency+fellowship folk would have greatly benefited, but they were in a small minority; so this was the best compromise we got that would pass union vote too.

                    https://hoaumich.org/contract/2018/   Section H is the specific language.

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                    • #11
                      Wife's 403(b) matched up to 6% of contributed wages.  I really don't think residents were excluded, but we didn't start contributing until after she finished residency (same employer afterward), so tbh I don't 100% know.

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                      • #12
                        Yes,

                        We also have a union, and receive matching contributions to 3% (if I recall correctly... maybe 4%).

                        FWIW, the matching predates the unionization.... that came with other benefits.

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                        • #13
                          These are all useful data points, but still, what is the legal rationale for residents to be discriminated against vrs. other hospital employees?

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                          • #14
                            No match. Fund your Roth IRA. Enjoy the rest of your money.

                            No need to make a stink, nothing will change.

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                            • #15
                              Many institutions classify residents as temporary employees. That classification disqualifies them from many benefits offered to permanent employees. They also don’t accrue leave and sick benefits as permanent party and are often given leave benefits under their own GME policy.

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