Montgomery Watson Inc., Pasadena, Calif., will close its $35 million defined benefit plan and move participants into its $115 million 401(k) plan, with all participants expected to be converted this week, according to Don Evenson, executive vice president. The company is responding to employees requests for more control over retirement assets.
Employees didnt understand (the defined benefit plan), he said.
In addition, the 401(k) plan is adding 17 funds to is existing options. The new lineup is: company stock option; a Fidelity brokerage link; Fidelity aggressive growth, balanced, diversified international, equity income, five Freedom funds, growth and income, growth, intermediate bond, low-priced stock, Magellan, managed income, money market, and overseas funds; Franklin small-cap fund; Janus Enterprise and Worldwide funds; Morgan Stanley Dean Witter emerging markets fund; PIMCO high-yield and innovation funds; Provident growth fund; and Spartan U.S. equity index fund. The additions were made to increase the number of fund options not handled by Fidelity and the availability of Freedom funds.
Fidelity will continue as record keeper and administrator.