Caltex Petroleum plans to combine its defined benefit, stock option and 401(k) plans into one defined contribution plan by 1998, said Al Horan, benefits and special services manager.
Each plan has about $100 million. The savings and stock plans will be merged in the middle of 1997, with the defined benefit plan becoming a cash balance plan in a move to ultimately join the plans later in 1998.
Hewitt Associates is expected to assist the company.
Champion taps State Street
Champion International Corp., Stamford, Conn., hired State Street Bank as master trustee of its $2.2 billion pension fund, said Donald Desfosses, assistant treasurer.
State Street, which replaces Northern Trust, was chosen for its technology.
The fund also dropped Target Investors as a small-cap growth manager; its $30 million portfolio will be distributed to existing managers.
Atlantic Steel accord
Atlantic Steel Co., through an agreement with the PBGC, will contribute up to $22 million to two of its pension plans.
The deal calls for Atlantic to make a $12 million contribution within 30 business days; an additional amount - up to $10 million - will be contributed if Atlantic sells certain land properties in the next five years.
The steelmaker's two plans are underfunded by $35 million.
Ports plan realigns
Associated British Ports Group Pension Scheme replaced one balanced manager and retained two incumbents following the merger of its three pension plans, said Charles Orange, finance director.
The combined fund, with some 300 million pound ($492 million) in assets, hired Schroder Investment Management as a balanced manager, replacing Clerical Medical Investment Group. Baring and Juptier were retained as balanced managers. Each will manage one-third of plan assets.
Incentive plan reviewed
Black & Decker may decide against paying incentive fees to T. Rowe Price Associates for boosting participation rates and increasing allocation to equities to its $325 million 401(k) plan.
"There are a number of gray areas that need to be examined and that means a lot of detail and a lot of expense," said Keith W. Lewis, T. Rowe Price vice president-national account sales. "It was an area we both decided wasn't worth pursuing."
But Ray Brusca, Black & Decker vice president-benefits, denied a decision has been made. "We are still working on a wide-ranging package of service guarantees and until all of it is in place, I don't want to say anything."
Details on Boeing deal
Jerry King, president of Boeing Co.'s defense and space group, said in a news conference late last week that Boeing will assume nearly $100 million in accrued pension liabilities of Rockwell International Corp.'s aerospace and defense business as part of its acquisition of the business. Mr. King said he is "not up to speed" regarding the possible combination of about $2.25 billion in Rockwell pension assets with the $12 billion Boeing plan.
Pond quits Caterpillar
P. Michael Pond, president of Caterpillar Investment Management, resigned effective Nov. 30. Mr. Pond said he is leaving voluntarily to seek other challenges, and that he is not retiring from the investment industry.
An internal memo said the company is seeking a replacement internally and externally. In the interim, CIML will report to Caterpillar Treasurer Lynn McPheeters.
Shelby County shifts assets
The $525 million Shelby County Retirement System hired its first minority manager, ended its covered call investment program, boosted one fixed-income portfolio and brought $20 million in bonds in-house.
David Pontius, manager of pension investments, said minority manager The Chapman Co. was given $10 million for domestic equity. Funding came from reducing a domestic equity portfolio managed by Stephens Capital Management.
The system also decided to give $25 million to existing manager Highland Capital Management for fixed income, and to bring $20 million in-house for a new U.S. bond portfolio. Funding came from terminating a $45 million Loomis Sayles covered call portfolio.
Engelhard selects 2
The $250 million pension fund of Engelhard Corp. hired two index managers, said Peter R. Rapin, assistant treasurer.
BZW Barclays Global Investors will manage a $15 million large-cap value equity index fund. State Street Global Advisors will manage a $25 million EAFE index fund. Funding came terminating a global hedge fund manager and an active EAFE-mandate manager; Mr. Rapin wouldn't name them.
Bristol County allocates
Bristol County Retirement Systems committed $5 million to three alternative investment funds, said Joe O' Reilly of Dahab Associates, the fund's consultant. The $140 million pension fund committed $1 million to the UNC Ventures Fund, $3 million to New England Growth Fund II and $1 million to First America Asia Fund. Funding will come from new contributions.
Chesapeake taps Equitable
Chesapeake Corp. hired Equitable Asset Management as a domestic small-cap manager following the breakup of Apodaca-Johnston Capital Management, said Thomas Smith, vice president of human resources at the $150 million pension fund. Apodaca-Johnston had been hired earlier this year for the $10 million portfolio that now will be managed by Equitable.
Archdiocese keeps Bankers
The Archdiocese of Los Angeles, with $400 million in pension assets, kept incumbent Bankers Trust as custodian, said Jose Debase, chief financial officer.
2 join Newbold's
James Farrell and Richard Seiwell have joined Newbold's Asset Management as CIO and senior analyst, respectively, new positions to boost the firm's structure as part of its merger with Pilgrim Baxter. Messrs. Farrell and Seiwell formerly were partners of now-defunct Cashman, Farrell & Associates.
BDM appoints Engel
Jeanette Engel was named vice president of compensation and benefits at BDM International, McLean, Va. She was head of compensation and retirement at PRC Inc., where her replacement hasn't been named.
Brad Sterl, BDM's acting head of compensation and benefits, will return to the human resources department. BDM has $143 million in retirement assets.
Playtex hires Merrill
Playtex Products Inc. hired Merrill Lynch Group Employee Services as bundled service provider for its $100 million 401(k)/profit-sharing plan, said Don David, benefits manager.
Seven investment options will be offered - five from Merrill Lynch plus the AIM Constellation and Templeton Foreign funds.
Merrill also will provide daily valued record keeping, administration and employee communications.
The plan previously had two options, an internally managed GIC fund and an equity option split between the Fidelity Magellan and Vanguard Windsor II funds.
Blessing joins Chase
Craig Blessing, formerly director of the fund management group and portfolio manager for the emerging market bond funds of Serfin Securities, has joined Chase Asset Management as head of emerging markets.
Mr. Blessing will be responsible for managing emerging markets debt portfolios. He will co-manage the Chase Vista International Yield Fund.
A staffer at Serfin said the firm is going out of business.