Jack Suntrup | Post-Dispatch
ST. LOUIS — BJC Health System is phasing out its pension plan, barring new participants since the start of July.
The nonprofit health system in a statement Thursday said current participants will be able to contribute and accrue benefits until 2030, when the plan will be frozen.
Under a pension freeze, employees keep the benefits they have earned, but do not receive additional credit for years of service or future pay raises, resulting in smaller retirement checks.
BJC’s move is the latest in a long-term trend in which employers have been moving away from pensions and toward 401(k) plans, which shift more responsibility to employees to fund their own retirements.
About 60% of workers had defined-benefit pension plans in 1989. That number fell to 20% by 2022, according to a report from the St. Louis Fed.
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At the same time, defined-contribution plans such as 401(k)s grew in popularity, covering 55% of workers in 1989, and 80% of workers in 2022.
A spokesperson for BJC tied the move to the organization’s 2024 merger with St. Luke’s Health System of Kansas City.
Since then, BJC Health System has been evaluating benefits across both regions, aiming to move to a single benefit package for all 47,000 employees by next year, the spokesperson said.
“This thorough process included a comprehensive market analysis to ensure our benefits package remains highly competitive with peer organizations within the health care industry and beyond,” said Laura High, BJC spokesperson, in an emailed statement.
“BJC is proud to be recognized as one of Forbes Best Large Employers and Newsweek’s America’s Greatest Workplaces,” she added, “and we understand the important role benefits play in earning that recognition.”
BJC, the area’s largest healthcare provider, operates 14 hospitals in the St. Louis region.
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