Mercer | Health System Mergers Require Rethink of DC Plans

Mercer | Health System Mergers Require Rethink of DC Plans


Health System Mergers Require Rethink of DC Plans

Health care reform is not the only thing shaking up the health systems industry. This sector has seen a surge in merger and acquisition (M&A) activity. The successful integration of two organizations into a combined entity entails substantial effort for merged health care organizations. One question arising from these M&A deals involves determining the most appropriate type of defined contribution (DC) retirement plan for the new organization and its employees

Health care organizations sponsor roughly 21% of the 403(b) industry. The recent growth in M&A activity among health systems could present unique issues to these enterprises relative to other 403(b)-eligible organizations.

This paper provides a brief overview of defined contribution (DC) plan considerations facing health care organizations that engage in M&A activity. We also include a high-level comparison of 401(k) and 403(b) plans, key issues with plan mergers, the potential loss of church plan status, the importance of DC retirement plan governance, and regulatory changes.


 Speak with a Mercer Consultant
We’re eager to speak with you. Please provide your details below.
*Required Fields
First name is required
Last name is required
Role is required
Email is required Email is invalid
Company name is required
Country is required

I would like to receive communications about products and offerings from Mercer. I understand that I can unsubscribe at any time.

By clicking Submit, I agree to the use of my personal information according to the Mercer Privacy Statement. I understand that my personal information may be transferred for processing outside my country of residence, where standards of data protection may be different.

There are some errors processing this form. Please check the fields and try again.

Thank you for submitting. We will get back to you shortly.