Benchmark/comparison of defined pension plans in healthcare/hospitals.

[Guest gainsbury]

I am trying to find information regarding customary benefits in hospitals, either for profit or not-for-profit.

ie Do most Hospitals use the formula:

'final average earnings x 1.2% x years of service'. Or do they use a higher %?

Also what is the percentage of hospitals

that offer a 401K/403B match?

Would much appreciate any info anyone could provide..

I am in New York. Thanks

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Julia

[Guest sdussault]

Julia.. I am the Benefits Coordinator for a hospital in North Carolina. We had the standard FAC x 1.2 x YOS until we added a matching 403(B) plan. Also, under the DB pension, we had required contributions of 3%. We amended the DB plan to remove the mandatory contributions and changed the formula to FAC x .60% X YOS. To compliment this, we added a matching plan with employer match of 50% up to 6% of earnings.

Before making any change however, we engaged a big 6 accounting firm and had a number of actuarial studies performed to be certain that this new plan would not adversely affect our employees. We also "grandfathered" all employees at or over age 45 with 15 YOS; all employees with 20 YOS regardless of age; and all employees age 55 or older regardless of YOS.

We are a not-for-profit governmental ERISA exempt organization. Hope this info helps you.

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[david rigby]

Julia,

I am an actuary in NC. We have a number of hospital clients, and some others who are prospective clients. I would be interested in sharing information with you. If you are interested, email me from the icon on this message.

[This message has been edited by pax (edited 04-14-99).]