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
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Halifax Health in Florida Considers $14M in Pension Cuts
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