Two ways to handle a pension plan surplus.
A healthcare organization wanting to tap into its pension plan surplus may be reluctant to do so for fear of Medicare recapture. By following a recent court decision and a reasonable interpretation of Medicare regulations, however, a facility may terminate an existing pension plan, purchase a group annuity contract, and reduce Medicare recapture. Two methods for treating termination of a plan are in line with Medicare rules. A facility considering termination should analyze the effects of both and use the method likely to produce a better financial result.
Beautyman
M J
MJ
D005377:Financial Management, Hospital / Q000379:methods*; D006278:Medicare / Q000331:legislation & jurisprudence; D010415:Pensions; D010557:Personnel Administration, Hospital / Q000191:economics*; D011445:Prospective Payment System / Q000331:legislation & jurisprudence; D013660:Taxes; D014481:United States