The study surveyed 180 hospitals and health systems on their retirement program plans. In 2006, only 58 percent of hospital industry employees were in a DC plan, the lowest level within the past 10 years.
Here are some other key findings from the study:
• The percentage of hospitals and health systems that offer a matching contribution in their DC plan has almost doubled in six years, from 44 percent in 2006 to 79 percent in 2012.
• Although defined benefit plans are still offered at 42 percent of surveyed institutions, those organizations said the DB plans are frozen to either new employees or all employees.
• DC participants at healthcare organizations contribute an average of 5 to 7 percent of their salary to their DC plan annually.
• The investment markets hammered retirement plans after the economic collapse of 2008. In 2009, the average annual contribution from healthcare employees to their DC plan was $3,505, compared with $5,205 in 2006. The number has improved steadily, as the annual contribution amount stood at $4,005 this year.
• Thirty-eight percent of hospitals and health systems use automatic enrollment for DC participants.
More Articles on Hospital Pension Plans:
Halifax Health Reaches Compromise on Pension Plans
Employees Sue Truman Medical Center in Kansas City Over Pension Plans
Hospital CFO Panel: How Are You Approaching Your Fiscal Strategy Right Now?
