As reported by The MFWire's sister publication The 401kWire yesterday morning, Fidelity Investments has won a mandate as the sole 403(b) plan provider for Purdue University.
Beginning next year, Fidelity will perform recordkeeping and administration for Purdue's
defined contribution retirement plan and voluntary retirement savings program, which have a combined 15,000 participants and $2.3 billion of assets.
Purdue is going from five 403(b) vendors to just one.
Fidelity will set up an office on Purdue's campus that will be staffed by four employees, John Ragnoni, executive vice president, tax exempt,
told The 401kWire.
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PURDUE UNIVERSITY CHOOSES FIDELITY® AS SOLE 403(b)
RETIREMENT PROVIDER
Firm to Act as Recordkeeping and Administrative Service Provider as University Consolidates From Five Vendors to One
BOSTON, Sept. 16, 2010 – Fidelity Investments®, the nation’s No. 1 provider of workplace retirement savings plans1, today reported that it has been selected by Purdue University as its sole 403(b) plan provider.
Fidelity will act as the recordkeeping and administrative service provider to Purdue’s defined contribution retirement plan as well as its voluntary retirement savings program starting Jan. 1, 2011. These plans service about 15,000 Purdue participants, representing approximately $2.3 billion in assets. The University, one of the leading public universities in the U.S.2, will be consolidating its retirement plan from five providers to one.
“More not-for-profit employers, like Purdue University, are turning to Fidelity as the service provider of choice as they look to consolidate with a provider that can both ease their fiduciary and administrative burden and provide their employees with holistic financial guidance,” said John Ragnoni, executive vice president, Tax Exempt, Fidelity Investments.
As one of the country’s largest providers of investment services, Fidelity will bring an
enhanced plan offering to Purdue University employees that includes state-of-the-art
technology, access to investment information and online enrollment capabilities, and a robust investment lineup representing a broad range of investment styles. Fidelity also will open a West Lafayette office that will help serve Purdue faculty and staff at all campuses with their retirement planning.
1 Based on 2008-2009 data from Cerulli, PlanSponsor.com and Fidelity Market Insights Group
2 U.S.News & World Report: Aug. 17, 2010 university rankings.
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Purdue Chooses Fidelity as 403(b) Retirement Provider /Page 2
The decision by Purdue was a result of a Retirement Plan Review Task Force charged
with making a recommendation.
“Our task force included representatives from all employee groups at Purdue,” said Jim Almond, senior vice president for business services and assistant treasurer, Purdue University. “Purdue’s Retirement Plan Review Task Force was formed in the fall of 2008, and Purdue’s Board of Trustees accepted its recommendations in July.”
Fidelity serves over 3.3 million not-for-profit participants in more than 2,000 workplace savings plans across higher education, healthcare and other institutions. Fidelity is the No. 1 retirement provider to the health care market and No. 2 provider in higher education.
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