Understanding the Physicians Affiliate Group of New York (PAGNY) Retirement Plan: FAQs for NYC Health Physicians

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The Physician Affiliate Group of New York (PAGNY) is one of the largest multi-specialty physician groups in the country, providing services across NYC Health + Hospitals facilities. If you're a physician, physician assistant, or healthcare provider employed by PAGNY, understanding your retirement benefits and compensation is critical for planning your financial future.

Here are answers to some of the most frequently asked questions about PAGNY’s retirement plan and related benefits.

What is the Physicians Affiliate Group of New York (PAGNY) retirement plan?

PAGNY offers eligible employees access to a 401(k) Retirement Plan.

To our knowledge Fidelity Investments Manages the plan.

Are there reviews of the PAGNY retirement plan?

While individual experiences may vary, D.R. Harris & Co. would rate the PAGNY retirement plan as excellent.

Here is why it is deserving of our top rating.

• It has a Fidelity BrokerageLink account which unlocks some of the top investment options for physicians (this is an absolutely essential characteristic of a 401(k) plan for physicians in our view)

• Employees may be eligible to contribute to the plan after working 1,000 hours in the first year of employment (so 6 months of full time work, or 12 months or half time work, typically).

• Employees are immediately vested in a 3% company contribution of base earnings. No employee match is required.

• After one year of service, employees receive an additional 7% company contribution of base earnings. No employee match is required.

• According to our calculations PAGNY employer contributions have tended to be about $12,000 per employee, on average.

• Given the employees of PAGNY typically contribute close to $14,000 per year to the PAGNY - the combined contributions of $26,000 a year is often sufficient to generate a comfortable retirement for many physicians, assuming the money is invested well and is productive over time.

• PAGNY uses not just a high quality custodian in Fidelity in our view (known for their low costs and broad investment options) they also include many low fee high quality funds inside their 401(k) in our view. Firms likes State Street, Fidelity and BlackRock all have a very good reputation amongst fiduciary financial advisors for providing a plethora of low cost mutual funds that represent a broad range of investment options.

Employers who don't value their physicians, in our view, may have unnecessarily long vesting schedules (they can last out to 5-6 years in some cases). While some vesting cliffs are reasonable in plan to keep overhead under control, there should be a good business reason to have a long vesting period or a long time until you are eligible to participate in the plan. For a company with seasonal employees like a retailer who hires a lot at Christmas or an amusement park that is only open in the summer, this makes a lot of sense.

But it doesn't necessarily make sense fo physicians, and one of the clearest signs of a physician friendly group is a physician friendly retirement plan, which PAGNY has in our view.

Physicians and healthcare workers who prioritize long-term savings tend to appreciate the structure of these benefits. However, some employees have noted a desire for more personalized financial education or clearer communication around plan options.

How much does the PAGNY retirement plan cost employees?

The PAGNY retirement plan appears to be very inexpensive to us. It appears to us that the general overhead plan (between the investment team that selects the investments and Fidelity which maintains the plan) might amount to around 0.05% in fees a percentage of assets.

This is very competitive for a plan this size and another reason why we regard the PAGNY retirement plan as outstanding.

How do I access my PAGNY retirement plan account?

PAGNY's 401(k) Retirement Plan is run through Fidelity, so this can typically be found through Fidelity Net Benefits website.

If that doesn't work or you haven't been able to log in, the person to contact is Stacy Marks https://www.linkedin.com/in/stacy-marks-b7886194 and her office phone number is 646-672-3651.

Final Thoughts

PAGNY offers a strong retirement and benefits package that supports the long-term financial well-being of healthcare professionals working in New York’s public health system. Whether you’re just starting your career, mid-career, or planning for retirement, understanding your options within the PAGNY retirement system is an essential step toward financial security.

If you're a physician a PAGNY and you are unsure of how to invest your PAGNY 401(k) assets to achieve your goals and you are interested in hiring a fiduciary financial advisor that works with physicians, feel free to schedule an introductory 15 minute call here.

Alternatively if you would like to know more about Daniel Harris, D.R. Harris & Co. and our services feel free to click here or here.

Disclaimer: While we believe the information in this article is correct you should check with your HR department and plan document to confirm the accuracy of anything that is written here.  You are not a client of D.R. Harris & Co. without a signed written contract from D.R. Harris & Co. Please do all of your own research or consult with your own tax, legal and financial advisory team before acting on any of the educational material that you read about in this article.