An overwhelming majority - 81% - of benefits professionals in the healthcare industry believe their industry will move to defined contribution from defined benefit plans in the next few years.
The results of a survey of 443 benefits professionals from hospitals nationwide were released July 25 at a healthcare industry meeting by the Copeland Cos., East Brunswick, N.J.
But a wholesale move to defined contribution plans by hospitals might not go smoothly, if the current record is anything to judge by. While 61% of those surveyed offer a defined contribution plan now, average participation in those plans is only 58%.
Only half of the human resource executives said they thought the current retirement plans offered by their hospitals were adequate to meet employee retirement needs. Just 41% said they thought employees received adequate assistance in planning for retirement.
Better employee communications materials from vendors were the No. 1 way benefits administrators thought their 403(b) plans could be improved. Another way the plans could be improved is through the addition of more investment options; 36% of those surveyed said their plans will offer more options during the next one to two years. Non-profit hospitals are more likely (37%) to be adding new investment choices than for-profit hospitals (19%).