ChevronTexaco Corp., San Ramon, Calif., hired Vanguard as record keeper and primary investment manager for a restructured 401(k) plan that combines Chevron Corp.s $5.5 billion plan and Texaco Inc.s $2 billion plan, said David P. Smay, general manager-benefit plan investments.
Under a tentative restructuring, Vanguard will provide nine investment portfolios. The combined plan also expects to offer a second tier of portfolios that might include 10 other Vanguard funds and 20 funds from other managers. And it may offer a third investment tier, a mutual fund window with some 3,000 choices, for an annual fee of $50 per participant.
Mr. Smay said the changes will be effective April 1. He said the restructuring proposal is tentative, pending decisions by company executives in about a month.
Vanguard and CitiStreet were the only firms considered. Vanguard was record keeper for Texacos 401(k) plan and provided most of its investment portfolios, and CitiStreet was record keeper for Chevrons plan. State Street Global Advisors provided most of the investment portfolios for the Chevron plan. Chevrons plan also offered a mutual fund window.