STAMFORD, Conn. -- General Signal Corp. outsourced the management of its $930 million in pension and 401(k) assets, and laid off its pension and benefits managers.
Both Marc Katz, director-pension investments and benefits finance, and Robert M. Bach, director-compensation and benefits, were let go.
RogersCasey & Associates, Darien, Conn., was hired to manage the firm's pension plan, said Nino Fernandez, vice president of investor relations. It appears Buck Consultants will oversee the 401(k) plan.
General Signal had $632 million in defined benefit assets and $298 million in 401(k) assets as of Sept. 30.
He said he believes Towers Perrin, New York, will continue as a consultant.
The moves were part of a restructuring in which about one-third of General Signal's 100-person corporate staff was laid off, and the pensions, benefits and tax departments were outsourced, Mr. Fernandez said.
Mr. Fernandez said Messrs. Katz and Bach were the only pension and benefits staffers let go.
Although Mr. Fernandez said he wasn't aware of the specifics of RogersCasey's role, one industry source said RogersCasey is expected to run the plan in a traditional fashion, and will perform a review of the firm's pension fund structure.
RogersCasey probably will not make wholesale changes in General Signal's investment management lineup, which can be the case when a plan sponsor hires a manager-of-managers firm for outsourcing, the source said.
Terence Martin, General Signal's chief financial officer and newly named treasurer, was not available for comment. Mr. Martin took over as treasurer from Terry J. Mortimer, who is now chief financial officer of a unit of General Signal to be spun off, GS Networks, Mr. Fernandez said.
Executives at RogersCasey and Towers Perrin declined to comment.
Neither Mr. Katz nor Mr. Bach could be reached.
According to Nelson's 1998 Directory of Plan Sponsors, General Signal's defined benefit managers are: AEW Capital Management; Ark Asset Management Co. Inc.; Dodge & Cox; Independence Investment Associates; Investment Advisers Inc.; Lombard Odier International Portfolio Management Ltd.; MacKay-Shields Financial Corp.; J.P. Morgan Investment Management Inc.; Morgan Stanley Asset Management Inc.; T. Rowe Price Stable Asset Management Inc.; Ruane, Cunniff & Co. Inc.; Scudder Kemper Investments; State Street Research & Management Co.; TCW Group; and Westmark Realty Advisors LLC.
Its defined contribution plan managers are Bankers Trust Co. and Fidelity Investments, according to Nelson's.
The managers either couldn't be reached or declined to comment.
As of Sept. 30, General Signal was ranked 626th among the largest 1,000 U.S. employee benefit plans. Its defined benefit asset allocation was 68.5% equities, 27.8% fixed income, 2.5% real estate equity, 0.7% cash equivalents and 0.5% in other securities. It had about $100 million invested internationally.
