TUSTIN, Calif. - George Fisher Inc. had a number of defined contribution plans with different record keepers. When the Tustin-based company switched to a single semibundled provider, CIGNA Retirement & Investment Services, Hartford, Conn., Fisher executives took the opportunity to launch an education campaign.
Fisher took more than 10 plans with different record keepers and put the plans under one record keeper; all the plans now have identical investment options. Incumbent record keepers included MassMutual Financial Group, INVESCO Retirement Inc. and PFPC Inc., said Dixie Healy, human resources director for Fisher's piping systems unit. The unit accounts for $14 million of the total $40 million in Fisher's 401(k), which includes a profit-sharing feature.
The new investment options are CIGNA's Charter Large Company Stock Value and Charter Large Company Stock, Dresdner's Large Company Stock Growth, Artisan Partner's Midsize Company Stock and a set of five lifestyle funds by CIGNA. Replaced were AIM Value, Fidelity Growth and Income, Janus Fund and INVESCO Dynamics. Also, two guaranteed investment contract funds were replaced by one managed by CIGNA. Retained in the plan were five other Charter funds - core bond, midsize company value and growth, and small company value and growth; two Janus funds, worldwide and adviser balanced; Fidelity Magellan; and CIGNA Direct.
"We wanted to increase deferrals and employee appreciation for the different (investment) choices," Ms. Healy said.
Executives also wanted to convince employees to invest less conservatively, said Niklas Hallberg, chief financial officer. "They had too much in money markets and too little in stock and growth," he said, adding the average employee is 35.
CIGNA did the education campaign using a variety of media and ending with meetings.
In the end, everyone in the group felt they had gotten individual information, Ms. Healy said.