From Pensions to Portfolios: 5 questions and answers About Eastern Maine Medical Center's 403(b) and Northern Light's Evolving Retirement Plans

As a physician at Northern Light Health—especially those affiliated with Eastern Maine Medical Center—you’ve likely noticed some significant changes in your retirement benefits. Between the transition to a 403(b) plan and the exclusive nature of the 457(b) plan, it’s fair to have questions. We're here to break down the key points so you can make informed decisions about your future.

1. How Does the 3-Year Vesting Schedule Work in Eastern Maine Medical Centers 403(b) —and What If I Leave Early?

Under the current retirement structure, Eastern Maine Medical Center/Northern Light contributes to your 403(b) retirement account—but there’s a catch: you must stay with the organization for three years to achieve any vesting. This is one of the longest vesting schedules allowed under IRS rules.

What does vesting mean? It’s your legal right to keep the employer contributions (not just your own) if you leave.

• Before 3 years? You’ll keep your own contributions, but employer contributions are forfeited.

• After 3 years? All contributions (yours and Northern Light’s) are yours to keep—no matter where your career takes you.

2. Why Can’t I See All My Retirement Plans in One Place?

It’s not just you—this is a common frustration. Your retirement benefits may include multiple accounts:

• 403(b) managed Fidelity

• 457(b) deferred compensation plan managed by BlueFin

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Unfortunately, these accounts are managed by different custodians, each with their own login portals. While efforts to consolidate visibility are underway industry-wide, data privacy and provider systems make integration complex.

3. Will My Pension Stop Growing Under the New 403(b) Plan?

If you're part of the legacy pension plan (prior to its freezing), your balance is preserved, but to our knowledge it will no longer grow with additional service or salary increases.

That’s where the 403(b) comes in—it's designed to replace future growth.

• The new plan allows for employer contributions and optional employee deferrals, which can be invested and grow over time.

• Unlike the pension, the 403(b) puts you in control of investment choices and potential growth.

📈 Translation: Your pension is now a snapshot of the past. Your 403(b) is the path forward.

4. Is the 457(b) Plan at Eastern Maine Medical Center/Northern Light Health Safe?

The 457(b) plan is a non-qualified deferred compensation plan, designed specifically for high earners—like physicians and executives.

Here's why it’s limited:

• The IRS caps who can participate based on compensation and organizational structure.

• It’s a tool for extra tax-deferred savings once you’ve maxed out your 403(b).

• Because it’s “non-qualified,” assets remain technically owned by the employer until distributed—adding some financial risk. If the hospital is in trouble I wouldn't necessarily assume that your contributions into a 457(b) will be extremely safe.

5. 403(b) vs. Pension: What Are the Long-Term Benefits?

The old pension plan promised fixed monthly payments—but lacked flexibility. The 403(b) flips that model: it’s portable, flexible, and potentially more lucrative, depending on your investments.

Here’s how the 403(b) shines long-term:

• Growth Potential: You choose where to invest, which could mean higher returns over time.

• Portability: If you leave, your vested balance moves with you.

• Employer Match: Northern Light contributes to help boost your savings.

• Tax Efficiency: Pre-tax contributions lower taxable income today; Roth options offer tax-free withdrawals in retirement.

💬 Think of the 403(b) as a retirement runway—it requires more involvement, but gives you more lift as you prepare for landing.