Pension Plan

You are eligible if you are an employee of Carilion Clinic or an affiliated employer who participates in the pension plan. Leased employees, independent contractors, consultants, students, interns or any other individual not classified by Carilion as an employee are not eligible.

• You automatically start participating in the pension plan after you are age 21 and have worked at least 1,000 hours during the first 12 months after your hire date or during any plan year.
• Service years for the pension plan run on our fiscal year, Oct. 1 through Sept. 30.
• You must work or be paid for 1,000 hours during the pension plan year to earn a year of service.
• Once you have five years of service, you are vested in the pension plan. This means you have full rights to your benefits at your normal retirement date. When you retire, in most cases, you will receive a monthly benefit for life.
• Carilion makes all contributions to the pension plan. You don’t have to put any of your own money into the plan.

To apply for pension benefits, submit the pension application and retirement planning form at least 120 days (four months) before you want to receive your first payment. This will allow:

• 45 days for the Benefits Service Center (BSC) to calculate your estimated benefits
• 30 to 90 days for you to choose a payment option, sign and return the election forms

IRS regulations require us to strictly enforce a formal administrative process, like the one above, for the timing of pension plan payments. You can submit your pension application and retirement planning form in any of the following ways:

• Print the application and send via interoffice mail to: 
  • HR BSC - Pension, 213 S. Jefferson St., Suite 1400, Roanoke, VA 24011
• Save it to your computer and upload it as an attachment to the Employee Center.
• Submit a ticket to Human Resources through the Employee Center; someone can call you back to take your application over the phone.

Based on current plan provisions, your benefit is based on the average of your highest five consecutive plan years of pension earnings up to the IRS compensation limits and your years of credited service.

Pension earnings are your total earnings paid from Oct. 1 through Sept. 30, including salary, overtime, bonuses, shift differentials, commissions and other pay, as well as any pre-tax contributions you make toward Carilion savings and benefit plans.

The IRS limits the amount of earnings that the plan can use for each pension plan year. When we determine the final average compensation, we use the highest five consecutive years of compensation applying the limit for each year. The limit effective October 1, 2025 is $350,000 and may change annually. Visit www.irs.gov for more information.

For a quick estimate, multiply your current monthly earnings by 1 percent and then multiply by years of credited service. This will give you a rough estimate of how much you can expect to receive monthly for your lifetime beginning at age 65.  A more detailed calculation is included in the Summary Plan Description. You can also use the Pension Estimator Tool. 

If you do not complete at least 501 hours of service in a plan year, you are considered to have a break in service and you will not receive credited service for this year. You will not have a break in service if you are on an approved leave of absence as a result of any of the following:

• You serve in the armed forces of the U.S. and return to work within the time required by the laws governing veterans' reemployment rights.
• You are on a medical or family leave of absence. You will receive credit for hours you normally would have worked, up to 501, to avoid a break in service.

Your years of service may be affected if you leave employment with Carilion and are later rehired. As long as you are an eligible employee and were a participant in the pension plan at the time you left Carilion, you will rejoin the pension plan immediately on your reemployment date.

• Once you are vested, you are always vested.
• If you received a lump-sum payment, your new benefit will be reduced to account for your lump-sum payment unless you repaid the distribution to the plan.
• If you were a participant but were not vested at the time you left Carilion your previous credited service and accrued benefit are restored if your break in service is less than five years. If you have a five year consecutive break in service, your prior service will not count towards vesting or your benefit amount.
• If you had not yet participated in the pension plan when you left employment because you had not met the eligibility requirements, when you return to Carilion you must meet the eligibility requirements before you can participate in the plan.

For more information, review the Summary Plan Description, or contact Human Resources through the Employee Center.

Effective April 1, 2022, the Plan provides for a lump sum option if:

1. the present value of the accrued benefit is not more than $100,000; and
2. the payment date is the earlier of after a participant has been terminated for a year or has reached their Normal Retirement Date from the Plan; and
3. if payments have not already started; and
4. your accrued benefit is not subject to a Qualified Domestic Relations Order. 

If you are married and your lump sum exceeds $5,000, your spouse must consent to your election to receive a lump sum in lieu of an annuity.

The lump sum is the present value of the monthly Life Only annuity payable at your Normal Retirement Date (or at the Benefit Commencement Date, if later). It is calculated using the applicable mortality table used for purposes of satisfying the requirements of Internal Revenue Code (IRC) 417(e), and interest rates equal to the segment rates for May preceding the start of the current plan year. The mortality table and segment rates are subject to change each year. The lump sum option must be re-calculated using the mortality table and segment rates in effect for May preceding the start of the plan year in which your lump sum is actually paid. This means that if you want to wait to a later date to start payment, the lump sum amount may increase or decrease (including may not be available) because it must be calculated with the actual factors in effect when your payments begin.

Once you receive a lump sum, no further benefits will be payable from the Pension Plan for that period of service. When you request pension estimates, the lump sum option will be provided to you if you are eligible for it.  

Effective July 1, 2022, if you participate in the pension plan, you can elect to start your pension benefit while continuing to work for Carilion in any status (full time or part time) if you:

• Are at least age 62
• Have met the eligibility requirements for early retirement (at least 10 years vested service)

This new change to the pension plan also affects current retirees who may be interested in returning to work for Carilion. After July 1, if they meet the above criteria, they may return in a full-time status without the need to suspend their monthly pension payments. This means when they return to work they will receive a retirement check as well as a paycheck.

After your Carilion employment ends, your pension benefit will be recalculated and balanced against the value of the payments you already received. Your recalculated benefit will not be less than the retirement benefit you were receiving when payments began.

To start your payments, see the above section Applying for Your Benefit (Start Your Payments).

• Pension Application and Retirement Planning Form
• Pension Plan Summary Plan Description
• Annual Funding Notice (AFN)
• Pension Plan Form 5500
• Pension FAQs
• Pension Plan Video
• Carilion Clinic Regulatory Information
• Pension Estimator