TriHealth, a Cincinnati-based health care system, is freezing its three defined benefit pension plans and beefing up its 401(k) plans.
“As the health care industry changes, we must continue to adjust our plans to be more consistent with benefit practices in our industry and remain competitive. These changes will encourage employees to actively plan and save for their retirement and help the retirement program remain competitive,” TriHealth said Thursday in a statement.
The defined benefit plans have about 14,000 participants and at year-end 2013 were more than 90% funded, a TriHealth spokesman said. The plans will be frozen effective Jan. 1, 2015.
At the same time, the 401(k) plan will be sweetened, with TriHealth matching 100% of employee salary deferrals, up to the first 1% of pay and matching 50% of deferrals on the next 5% of pay.
Currently, TriHealth fully matches 100% of employees’ contributions, up to the first 1.8% of pay.
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