Presbyterian Healthcare in New Mexico Halts Defined Benefit Pension Plans

Albuquerque, N.M.-based Presbyterian Healthcare Services is ending its defined benefit pension plan at year’s end and transitioning its 9,000 employees into a defined contribution plan, according to a New Mexico Business Weekly report.

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Currently, 6,000 employees are enrolled in the system’s defined benefit pension plan. They will receive benefits earned through the end of 2012 and the 1,547 employees who receive pension benefits will continue to receive them.

Presbyterian reportedly began stopping new employees from entering the defined benefit plan in 2006, instead enrolling them in the system’s 403(b) plan — non-profits’ version of a 401(k).

More Articles on Hospital Pension Plans:

Pension Management Predicaments? 3 Dominant Hospital Pension Strategies
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