McLeodUSA Inc., Cedar Rapids, Iowa, hired MassMutual Retirement Services to provide bundled services for its more than $50 million 401(k) plan.
MassMutual is providing 11 investment options, plan administration, daily valued record keeping, unlimited transaction capabilities and Internet access to the plan’s 4,000 participants..
The change in vendors was made because the plan became bigger and more complex when the 401(k) plan of a recent acquisition, Consolidated Communications Inc., Mattoon, Ill., was merged into McLeod’s 401(k) plan Jan. 1, said Larry Cooper, senior manager of benefits. The two plans had sepate third-party administrators — Diversified Investment Advisors for McLeod, with 11 investment options, and First Mid-Illinois Bank of Mattoon for Consolidated, with six investment options. The combined plan’s larger size, and expectations that the company will grow fast, pushed the search for a vendor with greater technological capabilities.
