Daytona Beach, Fla.-based Halifax Health recently proposed cutting $14 million from the system's pension plan due to the lagging economy and a growing budget shortfall, according to a Daytona Beach News-Journal report.
Halifax Health Chief Marketing Officer Ann Martorano said in the report the health system's pension plan is an "unsustainable financial liability," and officials are "trying to make the changes the least painful as possible."
If approved by the Halifax Health Board of Commissioners, the cuts would affect roughly 3,000 people, including former and current employees.
Halifax Health employees are either on a defined benefit or defined contribution plan, depending on date of hire, according to the report. The defined benefit plans — which are few and far between these days — cost a health system more because pension payments are based on years of service and compensation. Defined contribution plans involve varying payments based on investment income.
For the 2012 fiscal year, Halifax Health is expected to spend almost $24 million on its defined benefit pension plan, far more than the projected $2.5 million on the defined contribution plan.
Halifax Health Chief Marketing Officer Ann Martorano said in the report the health system's pension plan is an "unsustainable financial liability," and officials are "trying to make the changes the least painful as possible."
If approved by the Halifax Health Board of Commissioners, the cuts would affect roughly 3,000 people, including former and current employees.
Halifax Health employees are either on a defined benefit or defined contribution plan, depending on date of hire, according to the report. The defined benefit plans — which are few and far between these days — cost a health system more because pension payments are based on years of service and compensation. Defined contribution plans involve varying payments based on investment income.
For the 2012 fiscal year, Halifax Health is expected to spend almost $24 million on its defined benefit pension plan, far more than the projected $2.5 million on the defined contribution plan.
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