NACOGDOCHES, Texas (KTRE) – The Nacogdoches County Hospital District voted Tuesday night not to take any action to end its private retirement plan.
Nearly 100 people filled a Fredonia hotel conference room Tuesday evening as the district board held a meeting to discuss ending the private retirement system. Defined benefit plans began in the 80s. It closed in 2017 when the hospital switched to a 401k plan. A defined benefit plan is a retirement plan that promises a specified monthly benefit (dollar amount) to the employee upon retirement. Six people spoke at the public discussion.
Almarie Henderson believed there was a lack of communication and oversight from leaders.
“This issue has been ongoing for some time and we, the recipients, should have been informed when it was first discovered that there had been a short fall, so we should have responded accordingly. We can,” Henderson said.
Melissa Johnston expressed the uncertainty of the economic situation people may be facing.
“A lot of these people depend on this money every month. Not everyone has an IRA. Not everyone has extra money in case they need it,” Johnston said. he said.
Scott Skelton, the board’s attorney, explained how the distributions would be treated if the pension plan were to be terminated. He also said the layoffs are expected to take a year. This requires setting distribution dates, determining how assets will be distributed, and prioritizing payments to participants based on contribution type.
“Participants will be notified and distributions will be evaluated and made as quickly as administratively possible. This process will take at least a year,” Skelton said.
The board met for more than 30 minutes. Board member Wesley McKnight withdrew a motion to dissolve the retirement plan. He said since two board members were absent Tuesday night, it would be fair to include their votes at a later meeting. However, he still believes that withdrawing the plan is the best option.
“It’s the fairest way to get the most money to the most people and get it where there’s still time to invest without running out of money,” McKnight said.
The board may reconsider the decision at a later special or regular meeting.
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