Client:
Community Hospital

 

Background: 
A long time FIA endowment client

 

Concern: 
The hospital wondered about the feasibility of: 

 

• Freezing their defined benefit plan

• Starting an employer sponsored 403(b) plan

 

Resolution: 
Ready and able to advise on the best practices for this plan, FIA:

 

• Worked with the sub-committee of the board, CFO & HR on best strategies to freeze the plan without taking away critical benefits from older, long-term employees

 

• Worked with their actuary to freeze the plan and designed a 403(b) plan with employer contribution

 

• Designed a request for proposal (RFP) for a 403(b) recordkeeper search

 

• Assisted the committee in interviewing vendors to recordkeep the 403(b) plan and bundle the frozen pension

 

• Designed a custom LDI asset allocation strategy to manage the frozen pension toward termination

 

• Quarterbacked the communication effort to all employees

 

Ongoing Success:
The end result:

 

• Significant savings for the hospital’s pension contribution going forward  

 

• State of the art 403(b) plan with recordkeeper, investment lineup and employee education to promote better participant outcomes

 

• Ongoing monitoring of investments with FIA’s Fiduciary Governance Calendar