People's Bank, Bridgeport, Conn., is considering searching for a new bundled provider for its $220 million 401(k) plan next year, said Bill Pieper, vice president. Current bundled provider Putnam would be allowed to rebid, Mr. Pieper said. Plan officials are concerned about the performance of Putnam funds offered in the plan, as well as the civil fraud charges filed against the firm, he said. If members of the bank's administrative committee approve the search, the process will likely start in the first quarter, he said, with no change expected before the middle of next year.
Separately, the plan added the Artisan Midcap fund as an investment option and dropped the Putnam Vista fund, Mr. Pieper said. The change was due to performance, he said.
"Putnam remains committed to its long-standing relationship with People's Bank" and feels its clients will recognize the "rigorous corporate governance practices" now in place under the firm's new leadership, said Sinead Martin, Putnam spokeswoman. Putnam has been People's Bank's bundled provider since 1994, she said.
The plan offers 13 investment options. Portfolio Evaluations Inc. is the consultant.