Cincinnati Children’s Employees: What the Pension Freeze Means for You

(Note:  Wealthquest is not an agent of, nor otherwise affiliated with, Cincinnati Children’s.)

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You’ve always counted on your pension being there later in life. But what do you do when your benefits change?

On January 1, 2026, the Cincinnati Children’s employee pension plan will freeze. While you’ll keep the benefits you’ve already earned, no additional contributions will be made.

To replace the pension, Cincinnati Children’s is introducing enhanced 403(b) contributions based on years of service. This shift gives employees more flexibility and control over their retirement savings, but it also means the responsibility for retirement planning is now on you.

If your pension was a key part of your financial future, you need a plan. Now is the time to evaluate your savings strategy, maximize your new benefits, and make sure you’re on track for retirement.

Here’s what Cincinnati Children’s employees need to know and how the Wealthquest team can help.

What’s Changing & How It Affects You

Cincinnati Children’s is freezing its pension plan on January 1, 2026. If you’re an employee, this means two key things:

1. You keep the pension benefits you’ve already earned. Your accrued balance remains intact, and you’ll still receive payouts in retirement based on what you’ve accumulated so far.
2. You won’t receive additional pension contributions after 2025. The hospital will no longer fund the pension moving forward, which could leave a gap in your retirement savings.

Why Is This Happening?

Many companies and hospitals are moving away from traditional pensions in favor of defined-contribution plans like 403(b)s. These plans give employees more control over their investments and increase portability if they change jobs. Cincinnati Children’s decision aligns with this broader industry shift, and it’s not a sign of financial stress for the hospital.

What’s Replacing the Pension?

To offset the pension freeze, Cincinnati Children’s is increasing employer contributions to employee 403(b) retirement plans under the Cincinnati Children’s Contributions (CCC) Plan. Here’s how much the hospital will contribute, based on years of service:

0-10 years: 5% of salary

10-15 years: 6% of salary

15-20 years: 7% of salary

20-25 years: 8% of salary

25-30 years: 9% of salary

30+ years: 10% of salary

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In addition, employees who meet the 55-point test (age + years of service = 55 or more by the end of 2025) will receive an extra 4% contribution for five years if they remain full-time.

This change shifts the responsibility of retirement planning from Cincinnati Children’s to you. While the new plan offers flexibility, you may need to manage your retirement savings more actively.

Maximizing Your Retirement Savings After the Pension Freeze

With Cincinnati Children’s shifting from a pension to enhanced 403(b) contributions, you have more control--and responsibility--over your retirement savings. To stay on track, you need a strategy to maximize your new benefits and fill any gaps left by the pension freeze.

What Steps to Take Now

1. Make sure you’re getting the full employer contribution.

Cincinnati Children’s will contribute 5% to 10% of your salary based on years of service, plus an extra 4% for five years if you qualify under the 55-point test. If you’re eligible, confirm you’re enrolled and receiving these contributions.

2. Increase your personal contributions.

The pension freeze means you’ll rely more on your own savings. Consider increasing your 403(b) contributions to take full advantage of tax benefits and compound growth. In 2025, you may contribute up to $23,500 plus an additional $7,500 if you're 50-59 or 64; or $11,250 if you're 60-63.

3. Choose the right investment strategy.

With a pension, you have a guaranteed income in retirement. With a 403(b), your investment decisions will determine your investment performance. Review your options and ensure your portfolio aligns with your risk tolerance and long-term goals.

Diversifying Beyond Your 403(b)

While the 403(b) is a strong foundation, relying on one account for retirement isn’t ideal. Consider additional savings strategies:

• Roth IRAs offer tax-free withdrawals in retirement, giving you flexibility to manage taxes later in life.
• Brokerage accounts don't have the funding limits that retirement accounts do. This will allow you to put even more away for retirement. Plus, distributions from a brokerage account aren’t subject to age restrictions and if you do take money out, you only have to pay taxes on any investment gain that is realized as a result.
• If available to you, Health Savings Accounts (HSAs) can be a tax-efficient way to save for medical costs in retirement.

The pension freeze is a significant change, but you have options. Taking a proactive approach now will help ensure you’re financially prepared for retirement.

How Wealthquest Helps Cincinnati Children’s Employees

While the pension freeze will have an impact on your retirement income,  it does give you more control over your own retirement savings. While this can feel overwhelming, you don’t have to navigate it alone. At Wealthquest, we take a holistic approach when helping our clients make sense of their financial future. By having in-house tax preparation, investment management, financial planning, and estate planning services, we can give comprehensive guidance that provides families the clarity and confidence they are looking for. 

Take Control of Your Financial Future

Cincinnati Children’s may be shifting responsibility to you, but that doesn’t mean you have to figure it out alone. Our team of fiduciary advisors is here to answer any questions you might have about how the pension freeze impacts your unique situation. 

If you have questions or would like to speak with a member of our team, schedule a no-obligation call today.