Ohio Hospital Corp Announces DB Freeze, Sweetens DC Offer

April 10, 2007 (PLANSPONSOR.com) - The Ohio Valley Health Services and Education Corp. is freezing the defined benefit plans of two of its subsidiaries and eliminating its 6% contribution of each enrolled employee's salary, according to the Intelligencer.

class=”story”> The change – affecting the employees of Ohio Valley Medical Center and East Ohio Regional Hospital – will take effect May 19 and will affect all future employees and those who have not worked for one year.

class=”story”> The corporation also sweetened the offering of its 403(b) plan by increasing its $0.25 per $1 match for up to 4% of employees’ salary.

James Stultz, senior vice president of Human Resources for the company, told the newspaper that the decision to freeze and reduce the benefits is “unfortunate” and “even unfair,” especially for employees who thought they were eligible for the plan but who will now lose access, but that funding requirement mandated by the Pension Protection Act would require the corporation to raise and supply a projected $23 million in liquid assets over the next eight years.

“It is important that people understand that the pension plan in no way excludes employees from participation in the ongoing voluntary 403B plans provided by the corporation,” Stultz said.