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General Electric moves retirement plan to Fidelity
January 26, 2010 / 5:57 PM / 8 years ago

General Electric moves retirement plan to Fidelity

* Offsets recent retirement plan losses for Fidelity

* GE spokeswoman cites added services

BOSTON, Jan 26 (Reuters) - General Electric Co (GE.N) said on Tuesday it recently hired Fidelity Investments to run a major retirement savings plan, a contract that offsets two recent losses in the same market for the mutual fund firm.

GE spokeswoman Susan Bishop said that effective Dec. 1 the largest U.S. conglomerate hired Boston-based Fidelity to administer and do recordkeeping for the company’s main 401(k) plan. It had $15.8 billion of assets under management as of the end of 2008, the most recent figure available.

GE had previously handled most of its 401(k) administration internally and will continue to manage assets in the plan, which covers some 245,000 employees and retirees, Bishop said.

Fidelity is the largest administrator of so-called “defined-contribution” retirement plans like 401(k)s, a sector that faces growing competition and regulatory scrutiny.

Reuters reported on Monday that Fidelity recently lost contracts to run similar defined-contribution retirement plans for Ford Motor Co (F.N) and Apple Inc (AAPL.O).

A spokeswoman for Fidelity previously confirmed a major contract win but declined to name the client.

For Fidelity, picking up GE’s business marks a contrast with the other plans shifts. For instance, Ford cited the lower costs it obtained by dropping Fidelity, a sign of rising cost pressure in the sector.

But Bishop, the GE spokeswoman, said its main consideration in hiring Fidelity was not price but to offer more consulting services to plan participants. (Reporting by Ross Kerber and Scott Malone; Editing by Steve Orlofsky)

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