Benefits May 21, 2009

Iowa Medical Center Suspends 401(k) and 403(b) Matches

May 21, 2009 (PLANSPONSOR.com) - Mercy Medical Center has instituted a pay freeze that will affect its senior leaders, directors and managers, including its CEO.
Reported by

In addition, according to local ABC affiliate KCAU-DT in Sioux City, Iowa, the hospital has temporarily suspended its employer match contributions to employees’ 401(k) and 403(b) retirement plans. Mercy is one of 19 hospitals within the Trinity Health System that will be temporarily suspending part of benefits packages, the news report said.

A hospital spokesperson told the television station that while the number of patients choosing the hospital for care is increasing, so too is the number that cannot pay for services because they are uninsured or underinsured.

A number of hospitals and health systems have adjusted benefits offerings in an effort to deal with the recession, including freezing pensions (see Pa. Hospital Freezes Non-Union Pension Plan ) and suspending employer contributions to retirement plans (see AZ Hospital Cuts 403(b) Match ).

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