NEW YORK - AT&T Co. is upgrading its $3.3 billion 401(k) plan for hourly workers, making it similar to the management plan AT&T revamped last September.
The changes, effective Jan. 1, 1997, include doubling to 10 the number of investment options and moving to daily valuation from monthly.
No other details - including the selection of investment managers, record keeper and participant education service provider -have been firmed up yet, according to Eileen Conley, an AT&T spokesman.
"They might end up being the same providers as we use for the management plan, but they might not be," said Ms. Conley.
AT&T, New York, is redesigning the plan as part of collective bargaining concluded earlier this summer with the Communication Workers of America and the International Brotherhood of Electrical Workers.
The plan now offers five investment options. Bankers Trust Co., New York, oversees a company stock fund, an employee stock fund (the company's matching contribution in company stock is directed to this account) and a guaranteed interest account. A South Africa-restricted equity fund is managed by Miller, Anderson & Sherrerd L.L.P., West Conshohocken, Pa., Bankers Trust and Miller, Anderson and Dodge & Cox, San Francisco, share management of a diversified equity portfolio.
American Transtech, a Jacksonville, Fla., an AT&T subsidiary, provides record keeping.
If AT&T does replicate the features and vendors of its management plan within the union 401(k) plan, workers will have some innovative investment options, as well as an enhanced voice-response system and less limited transaction capabilities (Pensions & Investments, Aug. 22, 1994).
Fidelity Institutional Retirement Services Co., Boston, provides daily record keeping and three mutual funds for the management savings plan. Fidelity also manages a portion of three AT&T Custom Funds. The custom funds - U.S. and international equity and U.S. fixed income - use multiple managers, selected and monitored by AT&T Investment Management Co., which also controls asset allocation.
Three life cycle fund options are also offered to management employees. Brinson Partners Inc., Chicago, determines the asset allocation of these risk-diversified balanced funds, using managers from the Custom Funds' line-up. An AT&T company stock option also was carried over to the new management program.