Ericsson Inc., Plano, Texas, hired Northern Trust Retirement Consulting as semi-bundled provider and Financial Engines as investment advice provider for its $408 million 401(k) plan, said Cheryl Cunningham, benefits manager. Northern Trust was plan trustee and had managed some of the investment options, she said.
Plan executives also increased the number of investments in the plan to 11 from five, added a self-directed brokerage account and changed to immediate vesting, Ms. Cunningham said.
Ericsson executives made the changes to give their participants more selection, and also to reduce plan costs by going to a more bundled arrangement, she said.
The firm pays for the 401(k) investment advice, and participants pay a low annual fee if they want advice concerning their entire portfolio, Ms. Cunningham said. Financial Engines has an agreement with Northern Trust to offer investment advice to plan sponsors with Northern Trust as provider.