AT&T Inc., Dallas, hired Fidelity Investments as sole provider of administration and record-keeping services for the company’s defined benefit and defined contribution plans, confirmed Jeffrey Lagarce, executive vice president of sales and relationship management for Fidelity’s workplace services business.
Fidelity already was providing administration and record-keeping services for AT&T’s 343,000 defined contribution plan participants, as well as roughly 420,000 defined benefit participants, but over the past year the company conducted a search for a single provider to cover those participants and an additional 250,000 associated with companies acquired over the past five years, Mr. Lagarce said. He said the combined $80 billion AT&T retirement plan account, with roughly 1 million participants, will be Fidelity’s largest.
Fidelity spokesman Michael Shamrell declined to identify the firms being replaced.
In a news release, Marty Webb, AT&T’s vice president-benefits, said “AT&T’s leadership has determined that a single provider to meet the retirement needs of our employees and retirees is the best strategy for our company,” and Fidelity’s experience with complex plans made it the right choice. Efforts to contact Mr. Webb for further comment were unsuccessful.