MetLife will no longer provide stand-alone record keeping for large 401(k) plans, defined as plans with 5,000 or more participants; as a result, the firm will cut 450 jobs. MetLife endorsed Hewitt Associates to replace it as administrator for its sponsor clients.
The change will affect 26 plan sponsors with nearly 1 million participants. As of June 30, MetLife was record keeper for $100 billion in defined contribution assets, according to Pensions & Investments 2001 list of the top defined contribution service providers. MetLife will continue to service clients with mid-sized and smaller plans. Hewitt provides record keeping for $170 billion in defined contribution assets on behalf of large companies averaging 30,000 participants and $1 billion in assets.