The Markets May 21, 2009

Iowa Medical Center Suspends 401(k), 403(b) Matches

The Mercy Medical Center in Sioux City, Iowa, has temporarily suspended its employer match contributions to employees’ 401(k) and 403(b) retirement plans.
Reported by

Mercy Medical Center also instituted a pay freeze that will affect its senior leaders, directors, and managers, including its CEO, according to local ABC affiliate KCAU-DT.

Mercy is one of 19 hospitals within the Trinity Health System that will be temporarily suspending part of benefits packages, the news report said.

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A hospital spokesperson told the television station that while the number of patients choosing the hospital for care is increasing, so too is the number that cannot pay for services because they are uninsured or underinsured.

A number of hospitals and health systems have adjusted benefits offerings in an effort to deal with the recession, including freezing pensions (see “Pa. Hospital Freezes Non-Union Pension Plan’) and suspending employer contributions to retirement plans (see “Ariz. Hospital Cuts 403(b) Match’).

Products May 21, 2009

DTCC Improves Access to Managed Account Services

The Depository Trust&Clearing Corporation (DTCC) introduced MAS Portal, a new Web-based interface to its Managed Accounts Service (MAS) that will enable immediate connectivity for investment managers who oversee managed accounts programs.
Reported by

According to a DTCC announcement, the MAS platform streamlines communications throughout the lifecycle of a managed account and links an unlimited number of business partners on either side of a transaction. It allows users to handle higher account volumes at lower cost; invest customers’ funds quickly; decrease manual processing; and lower operational risk.

DTCC plans to launch MAS Portal in the third quarter of 2009 and has selected Peridrome Corporation’s DashWM solution suite to power the new service.

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“We’re excited about the potential for streamlining communications through a single gateway to make servicing managed accounts more efficient,” said Gib Veconi, president of Peridrome, in the release. “Managers won’t have to monitor multiple sponsor portals to keep up with daily volumes, and sponsors will be able to eliminate the cost of maintaining proprietary connections to communicate with those managers.”

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