2026 Benefit Changes
We are updating our retirement and health plan benefits effective Jan. 1, 2026. These changes will simplify our programs, provide your match upfront, and allow us to continue to provide market competitive benefits while supporting financial sustainability.
What’s changing
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Retirement – We will simplify our programs to an employer contribution each pay cycle that will match 100% of caregivers’ contributions. Your 100% employer match will be deposited in your account each pay cycle. You will no longer receive a discretionary contribution. To see how the changes affect or do not affect you, please go to this article.
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Health Plan – To keep health care affordable for more of our caregivers, caregivers who make more than $200,000 will no longer be eligible for our annual health incentive and will pay an increased pay-based premium.
Frequently Asked Questions
Why are we making these changes?
The Providence family of organization is committed to offering benefits that support our caregivers and remain competitive with other leading employers.
While we've offered retirement benefits that exceed broad market benchmarks for many years, we're now having to make changes to ensure the program remains competitive while also addressing the financial realities facing health care organizations across the country.
Our updated retirement program will align more closely with what other leading employers offer.
How are these changes aligned with our Mission and values?
This decision was guided by an ethical discernment. We carefully considered a range of options—including more drastic cost-saving measures—and weighed them against our values, our commitment to caregivers, and our responsibility to steward resources wisely. Ultimately, bringing our retirement program in line with what other leading employers offer is the most responsible path forward.
Retirement Benefits
Where can I go to see how these changes may or may not affect me personally?
If you have additional questions after reviewing below and this article, please call Fidelity’s Retirement Service Center at 800-343-0860. Fidelity is prepared to answer questions about these changes. They will have personalized information to share with you about your specific 2026 program starting on January 1, 2026.
What if I have an employment contract or am covered by a Collective Bargaining Agreement that determines my retirement benefit?
Caregivers represented by a labor union and covered under a Collective Bargaining Agreement receive benefits in accordance with the terms of their contract or in accordance with their employer’s legal status quo obligation. Plan provisions for represented caregivers may differ from what is reflected here. Physicians covered by an employment contract will also receive benefits in accordance with the terms of their agreement.
Are executives also affected by this change?
Yes, executives are affected by the retirement changes. Our executives are affected by the pay-based changes to health benefits so they can help support caregivers with a lower household income.
What do you mean by our current retirement plan being market leading?
For many years, the value of our retirement benefits has measured in the top quartile compared to what other employers offer for their employees. To be good stewards and maintain our financial sustainability during the difficult years to come as we face accelerating Medicaid and Medicare reimbursement cuts, we need to align more closely with other employers. These changes will allow us to steward our resources wisely, while remaining steadfast in providing meaningful benefits that support caregivers today and in the future.
How can I confirm/update my savings rate to ensure I get all the new employer match?
You can review and update your retirement contributions anytime through Fidelity NetBenefits.
To confirm your employer match level, find the Quick Links menu for your 401(k) plan and choose Summary. Note this will reflect the 2026 match beginning in 2026.
Who can help me understand my retirement program better?
Fidelity is ready to help you understand your retirement benefits. Call 800-343-0860. Need more in-depth assistance? Ask to speak with a Fidelity consultant or schedule a complimentary appointment online.
How do I know if I’m saving enough for retirement?
You can speak with a Fidelity financial consultant to understand your retirement benefits and plan for the future. Call 800-642-7131 to speak with a Fidelity consultant or schedule a complimentary appointment online.
What support is available for caregivers who may be struggling financially?
In addition to free access to Fidelity financial consultants, caregivers working at least 20 hours per week have access to free, personalized and confidential financial resources through Brightside. Get assistance with emergency expenses, debt and credit management and more. A Medical Plan Assistance Program is also offered. Learn more about the financial resources available to you.
Health Benefits
Who will have pay-based premium increases?
Caregivers who earn more than $200,000 annually will have pay-based premium increases.
How much is the 2026 pay-based premium?
The pay-based premium for those making over $200,000 annually has been in place for over seven years without an increase until now. In 2026, it will be $200/month for individuals and $400/month for individuals with family member(s). This equates to $92.31 biweekly for individuals or 184.62 for individuals with family member(s). Medical plan premium rates are expected to go up a moderate amount for all caregivers and will be announced during open enrollment.
How was the $200,000 threshold determined?
Over seven years ago, our mission leaders conducted a formal discernment on the cost of our benefits and endorsed the pay-based premiums in order to support more just benefits expenses for all caregivers. Our compensation team determined the $200k threshold after evaluating our service area cost of living ranges. In 2025, the IRS defines a highly compensated employee as $160,000 per year.
How is the > $200,000 earnings threshold calculated for the pay-based premiums and health incentive eligibility?
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The calculation for caregivers is based on expected pay (which excludes overtime and extra shift incentives) over the previous 12 months or loaded data in payroll as of October 22, 2025.
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The calculation for providers includes all actual pay (which includes: bonus, quality incentive pay, and productivity pay) over the previous 12 months or loaded data in payroll as of October 22, 2025.
