Benefits October 7, 2011

NC Health System Moves to 401(a), 457 Plan Offering

October 7, 2011 (PLANSPONSOR.com) - Johnston County, North Carolina's hospital system is implementing cost-saving measures - including enrolling new hires in what it says is a cheaper retirement program.
Reported by

The Johnston County Herald reports that in the spring, the hospital system got permission from the North Carolina General Assembly to end participation in the state employees’ retirement system for employees hired after October 1. New hires may enroll instead in a combination 401(a) and 457(b) account.   

Johnston Health will match 50% of employee contributions up to 5% of their pay, plus a “discretionary payment” of 2% of salaries for employees who qualify. Employees will be eligible for retirement at 65 with at least five years of service or at 55 with at least 20 years of service.   

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According to the news report, the state employees’ plan requires workers to contribute 6% of their pay. Retirement benefits are based on an employee’s average salary in their four highest-paid years in a row, plus their years of service to the state. Hospital leaders noted that participating in the state employees’ system was costing $2.9 million a year – or 16% of the hospital system’s employee benefits budget.
Deals and People October 6, 2011

State Street Execs Depart Amidst Trading Cost Challenge

October 6, 2011 (PLANSPONSOR.com) - State Street Global Markets’ (SSgM) Ross McLellan and Edward Pennings – global head of SSgM’s portfolio solutions group and head of the Europe, Middle East and Africa solutions group, respectively – have left the company.

 

Reported by

The departures came following a pension fund’s inquiries into fixed-income trading costs during a transition, multiple sources tell sister publication aiCIO.  When contacted, a State Street representative confirmed that McLellan is no longer with the firm, according to the report. State Street declined to comment on Pennings’ employment status.

According to sources, costs associated with a recent transition event spurred questions from an unnamed pension fund. Inalytics, a London-based consultant that specializes in assessing manager performance, performed due diligence on the trade, which sources claim was “priced on yield” when the pension believed it was meant to be “priced on cost.”

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More on this story HERE.

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