Exelis Inc., McLean, Va., hired Voya Retirement Services as sole record keeper of its 401(k) plan, said William Bonk, director of global benefits.
The change is effective Jan. 1, 2015, the same date the company merges its existing seven 401(k) plans into a single 401(k) plan called the Exelis Retirement Savings Plan, Mr. Bonk said in a telephone interview.
Exelis was created in October 2011 following the decision by ITT Corp. to spin off into three different companies, and inherited the seven 401(k) plans at that time.
“It was always our intention to eventually combine all the plans into one record keeper,” Mr. Bonk said, “and as we went forth to find that partner, we evaluated all the incumbents and we ran this huge procurement process, and ING, now Voya, rose to the surface as the best partner.”
Mr. Bonk said Voya impressed the firm with its “innovative participant engagement tools,” and some key ideas regarding the transition that will occur when the company freezes its $3.8 billion defined benefit plan on Dec. 31, 2016.
Upon hiring Voya, Exelis decided to merge the seven plans into one plan, Mr. Bonk said.
The current record keepers, who all rebid for the services, are Xerox for the Exelis Salaried Investment and Savings Plan; J.P. Morgan Retirement Plan Services for five other 401(k) plans; and Prudential Financial for the Exelis IS Retirement Savings Plan. The plans have combined assets of between $2.5 billion and $3 billion, Mr. Bonk said.
Towers Watson assisted with the search.