Memorial Health officials will reinstate a 2 percent retirement match for employees beginning June 1, President/CEO Maggie Gill announced yesterday.
In an email to system’s 4,700 employees, most of whom work at Memorial University Medical Center, Gill said the match was approved by the Memorial Health board of directors in a continuation of efforts to reward employees after a series of budget cuts two years ago.
“Without question, the number one issue on everyone’s mind is the status of the 401(k) match,” Gill said in response to a recent “What’s on your mind?” column.
Gill said that issue had been discussed several times last year and that the system’s goal was to reinstate a 2 percent match this year.
“I want everyone to truly understand the importance and the magnitude of reaching this goal,” Gill said.
She cited factors of “everyone deserves it,” and the “financial turnaround required to be able to afford it.”
“In just 14 months, we have restored $11 million in salary and benefits to the organization.
“Your hard work has paid off, and we have done all we can to ensure or team members realize the benefits.”
The then-3 percent 401(k) match was eliminated on Feb. 1, 2011, as the organization worked to deal with ongoing red ink in the region’s largest healthcare provider’s budget.
After ending 2010 with an operating loss of $27.5 million and net loss of $16.5 million, Memorial produced a $1.5 million operating profit in 2011 and a $4.8 million net profit, she said.
Last year, employees got a 2 percent across-the-board pay increase – the first raise given in more than four years. That required the system to make more than $4.5 million in financial improvements, in addition to the $30 million turnaround, Gill said..
She said that in order to provide the 401(k) match, the system must make financial improvement of $4.5 million this year.