Xcel Energy Inc., Minneapolis, will combine and revamp the 401(k) plans of the companies that preceded it, Northern States Power Co. and New Century Energies Inc., said Rick R. Rohkohl, director-dedicated funds.
Vanguard is record keeper and principal manager for the $500 million New Century 401(k). American Century and Capital Research & Management also offer options, according to the Money Market Directory. Hewitt Associates is record keeper for the $500 million Northern States 401(k), which offers four investment options from several managers, he said.
Xcel first will choose a record keeper for the combined 401(k) and is considering only the incumbents. The firm, which will be selected this summer, will work on changing the investment options for the combined plan, Mr. Rohkohl said. The plans should be combined in early 2002, he said.
Xcel also might combine the $2.3 billion Northern States and $1.3 billion New Century defined benefit plans. Company executives are concerned about surmounting regulatory hurdles, Mr. Rohkohl said. The Northern States plan has 19 managers and the New Century plan has 11, with no overlaps, according to the MMD.