American Electric Power Co., Columbus, Ohio, hired JPMorgan Retirement Plan Services as bundled provider of its $2.8 billion retirement 401(k) plan, replacing Fidelity Investments, said Steven Kiser, director of trust and investments for AEP. The hiring was first reported late Wednesday on Pensions & Investments' website, pionline.com.
"We decided to change for a couple of reasons. We're looking to reduce the fees paid by participants, and the level of services offered by JPMorgan is better than Fidelity," said Mr. Kiser, noting that plan participants will save about $2 million a year in expenses with JPMorgan. Mr. Kiser added that JPMorgan will offer access to Financial Engines' investment advice service and will provide participants with a mutual fund window.
Vincent Loporchio, spokesman for Fidelity, said the firm is proud of the good performance they brought to the plan for several years.
The plan currently offers 13 investment options and will probably remain at 13 core options after the switch, Mr. Kiser said.