Non-qualified retirement plan common 20 years ago

Dear Editor,

A quick note to the good people of Phillips County about the monthly retirement check I get from Phillips County Hospital that ended up on the front page of the PC News last week.

When I came to Malta 20 years ago, the hospital did not have an employee retirement plan at all. The hospital management company (Lutheran Health Systems) I worked for before coming to Malta had one.

When I took the job in Malta, I asked the board to consider setting up a small retirement plan for me. The board did that -- public decision, open meeting (nothing mysterious, behind-closed-doors or improper).

The retirement plan was funded with a life insurance policy on me that built cash value (purchased locally in Malta) owned by the hospital. It vested after seven years, as I recall. And since I served as the Phillips County Hospital CEO for nearly 14 years, I was entitled to the cash value of that life insurance policy paid out over 10 years when I retired in 2007. I received a monthly check of $558.66 from the hospital last seven years and will continue receiving this check for another two and a half years -- every penny paid for with the cash value of the life insurance policy when I left PC Hospital in 2007.

This type of "non-qualified retirement plan" for CEOs was very common in the healthcare industry 20 years ago; not so much today. Today, most hospital CEOs have access to a regular retirement plan. Remember, 20 years ago PC Hospital had no retirement plan at all. Mary and I are very grateful to the Phillips County community and the hospital and nursing home for this small retirement check.

I'll be at the State B girls' basketball tournament in Great Falls next week (Go M-ettes!!). If anyone has any questions about this monthly retirement check from the hospital, I'd be happy to chat.

Larry Putnam Helena, MT 59601

CEO, Phillips County Hospital & Hi-Line Retirement Center (1994 to 2007)

P.S.-Urge everyone to support the effort to raise funds for healthcare in Phillips County. PC Hospital and Hi-Line Retirement Center largest employer in Phillips County. Small hospitals, nursing homes and clinics across Montana are struggling financially. If you can't afford to help by contributing money, be sure to encourage family and friends to keep it local by using the clinic, hospital and nursing home.