Halifax Health, based in Daytona Beach, Fla., has reached a consensus among retirees, current employees and the board of directors on how to treat its pension plans going forward, according to a Daytona Beach News-Journal report.
In July, Halifax Health proposed cutting $14 million from the system's pension plan. The seven-member hospital board decided to freeze the defined benefit pension plan, starting Oct. 1, 2013, for existing employees, which is expected to save $8 million per year, according to the report.
Halifax Health retirees will still receive annual 3 percent cost-of-living payments, which the health system initially proposed cutting.
The 800 Halifax Health employees in the pension plan will keep all accrued benefits, but they will transition into a defined contribution plan. The health system will add 3 percent of an employee's salary into his or her account for the first two years to ease the transition, according to the report.
In July, Halifax Health proposed cutting $14 million from the system's pension plan. The seven-member hospital board decided to freeze the defined benefit pension plan, starting Oct. 1, 2013, for existing employees, which is expected to save $8 million per year, according to the report.
Halifax Health retirees will still receive annual 3 percent cost-of-living payments, which the health system initially proposed cutting.
The 800 Halifax Health employees in the pension plan will keep all accrued benefits, but they will transition into a defined contribution plan. The health system will add 3 percent of an employee's salary into his or her account for the first two years to ease the transition, according to the report.
More Articles on Hospital Pension Plans:
Yuma Regional Medical Center to Cut 135 Positions, Freeze Pensions
Employees Sue Truman Medical Center in Kansas City Over Pension Plans
Halifax Health in Florida Considers $14M in Pension Cuts