SANTA CLARA, Calif. -- Intel Corp. stock held by Intel's pension plans hasn't been hurt by a Federal Trade Commission lawsuit launched last month.
The FTC decided June 8 to bring an antitrust complaint against Santa Clara, Calif.-based Intel, which holds upward of 75% of the market for computer chips.
From close of trading prior to news of the FTC suit, Intel's share price actually had risen about 7%, as of the close July 7, giving a boost to Intel's $3.4 billion in pension and profit-sharing assets. At the same time, the S&P 500 index value rose about 4%.
officials declined to say how much Intel stock is in the 401(k).
Intel has three pools of retirement assets -- the 401(k), a profit-sharing plan, and a defined benefit pension plan, said Bradley Stevens, benefits administrator.
The DB pension plan kicks in only when profit-sharing assets are insufficient to fund the retirement of employees, he said. Contributions and benefit payments are determined by the amount of assets in the profit-sharing plan.
Intel hasn't made a contribution to the DB plan in years, he said.
Intel has roughly $1 billion in the 401(k) plan that is fully funded with contributions from employees -- there is no employer match, Mr. Stevens said.
The profit-sharing and defined benefit pension plans have combined assets of $2.4 billion, he said.
Investment direction in the profit-sharing plan is set by Intel executives, he said.
In the 401(k), employees have 12 investment choices, including a company stock option. Seven of the options are Fidelity funds: the institutional cash portfolio, Growth and Income Fund, ContraFund, Growth Company Fund, Low-Priced Stock Fund, Puritan Fund, and Magellan Fund.
Intel also offers Vanguard's Index Trust-500 portfolio, a Scudder fixed-income fund, the Twentieth Century Ultra Fund, and American Funds' EuroPacific Growth International Equity Fund.
