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